Speaking Out Against Tarp

In 2006, when the subprime lending market began to implode, it sent shockwaves throughout the U.S. economy and eventually lead to a global economic decline. The effects of this financial catastrophe are still being felt today. In an attempt to bolster the economy and promote lending, even in the face of this disaster, the U.S. government created the Troubled Asset Relief Program to supply lenders with needed funding. "The point of TARP", says Kristy Sinsara, President of the Consumer Advocacy Group, "was to 'stimulate the economy' by giving money to 'big businesses'." But has the Troubled Asset Relief Program succeeded in its aim?

Kristy Sinsara and the Consumer Advocacy Group believe that TARP funding is not being used for its intended purpose and are lobbying for a change of approach. "We believe that the lenders have proven that they can NOT be trusted with the Troubled Asset Relief Funds set aside by the Obama Administration," states Kristy Sinsara.

Kristy Sinsara and her associates with the Consumer Advocacy Group maintain that, "the lenders (Bank of America especially) have proven that they will only use the money for their own personal gain and have absolutely no individual homeowners' needs in mind. These lenders have essentially been given a blank check by our government that we as tax payers must pay for."

The Consumer Advocacy Group's claims stem from the fact that the many of the financial institutions who have receive Troubled Asset Relief Program funding, such as Bank of America, have not used this money for the stated purpose of keeping lines of credit open and extending relief to troubled homeowners suffering under the weight of sub-prime loans. Instead, claims Kristy Sinsara, these financiers have turned around to snatch up other floundering financial entities such as Countrywide and Meryl Lynch.

As part of their push for change, Kristy Sinsara and the Consumer Advocacy Group have been raising public awareness of how TARP funding has actually been spent by lenders. Kristy Sinsara points out that financial entities receiving TARP moneys have turned around to purchase or bail out other financiers like Countrywide and Meryl Lynch, rather than used to benefit individual homeowners struggling to hold on to their homes in the wake of the subprime market collapse.

"There are specific guidelines that must be met by each participant of the TARP program," states Kristy Sinsara, "and these guidelines are NOT being adhered to... Bank of America used MILLIONS of dollars from government funding (that WE are all paying for) and gave it directly to the 'chosen few' they selected to receive 'bailout' funds. And now, if you as a homeowner call them for help, they will tell you why they 'can't' help you."

Kristy Sinsara and the Consumer Advocacy Group have raised a battle cry, along with others across the county. These concerned groups hope to raise awareness about the Troubled Asset Relief Program and to spur the government into reassessing the TARP program to come up with a way to help those who really need it, the homeowners.