Government Controlling TARP

" So will the government actually let them return the money doesn't even really want the money back my next guest says in no way. -- banks like Goldman give the -- back to Washington there were no longer be able to call the shots. He is the author of covered -- corporate governance promise paid promises broken Jonathan -- is the deputy dean of the Yale Law School. Welcome Jonathan you're saying that the government does doesn't want the money back because they want to continue to control all -- controllable Wall Street. "

" That's right if there's one thing we've learned. Over the past couple hundred years about bureaucracies. Is that they don't like to give up power once they've got to take a look at the Tennessee Valley Authority. They were created -- put electricity into the Tennessee valley they did that but did they go away no this and know they need phone services. So they got phone services to everybody in that part of the US and got -- they go away go there still are out what they do. Who knows they loaned money to people people can never have enough money so they'll be around forever is just going to be a nightmare it's gonna be it's extremely uninteresting from an academic point of view but the idea that. That you're you've got these firms like Goldman and probably Wells Fargo and a bunch of other community banks in various places Louisiana New Jersey senator trying to get this money back. -- and the government says well we gotta think of a few more rules to. Impose upon you as a condition. For paying us back the -- you don't see that behavior at a very many creditors and to share side that. This is a government operation. Now some small banks have been able to give money back do you think though this is mostly a battle between the large Wall Street banks of a large. Money center banks and what in the White House. Yeah the people have control here the treasury so what you really want to look at. Are the largest financial institutions. Particularly the original nine now eight they got because of -- Merrill Lynch Bank of America merger that got money. From the treasury and end and now that the treasury has its bureaucratic clauses in those guys. It's going to take some real. Real maneuvering for them to get out from under this. The tentacles of the government Jonathan a lot of people said a Wall Street them -- the White House wants to control Wall Street because they might be away of them. In forcing a socialist agenda this is -- theory. What do you make of that. Well you know. The the the key to. To prohibit putting -- to socialize socialism agenda socialist agenda. I just not required nationalizing oil companies -- just requires nationalized seeing the major sources of capital. So it in the theory. But the problem is that. If this economy is still in recession. -- President Obama runs for reelection he's going to. The honeymoon will be over he's going to have a tough time so. There's going to have to be some balance between the ideological interest of certain members of the administration on the one hand and the political reality that what gets presidents reelected is is improving. Economies. All right thank you very much Jonathan -- the luck with the book by the way. I appreciate it thank you so much."