Loan Fraud Takes TARP for $21 Million

banks-150x150We all know (though some of may not care to admit it) that the banks and Wall Street weren’t solely responsible for causing the financial crisis. Though they take the lion’s share of the blame many other people, both public and private, contributed to the downfall.

Take the case in Kansas. A man just pleaded guilty to defrauding a local bank. He falsified documents to show a profit for his company, invented an auditing company to validate his reports, then used these cooked books to get nearly $1 million in loans from a local bank.

That bank ended up needing to be bailed out by TARP to the tune of $21 million, largely because of fraud such as this. When the bank went under taxpayers footed the bill in a big way.

These were obviously problems with the banks. TARP was for sure flawed. But the buck stops with someone and at the end of the day there are actual human beings behind things. It’s not always pretty to think of it but it’s a tough truth.

So how should this news affect you? Where does your faith go when humanity lets you down? Luckily for us we believe in the innate goodness of people. That when one person sees an injustice he feels a pang deep inside. It may take a while for that feeling to reach the surface but maybe one day soon we’ll all be there to help our fellow man.

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