I have been critical of this plan from the start, but have become convinced by Warren Buffett and Bill Gross that we had to do something. So here are my thoughts for going forward.
- Appoint Buffett to Chair the oversight board of the TARP Plan.
- Hire Bill Gross of PIMCO and Larry Fink of Blackrock to be the asset managers. Give them a 0.125% fee (as opposed to the normal 1%) but add in a success bonus if the assets are disposed of at a profit to the taxpayers.
- Instruct them to buy the assets at the lowest possible market price. If a bank doesn’t want to sell at that price, it’s their call. Just to test their “market price” let the private market buy 10% of the securities alongside them.