Bungled Bank Bailout Leaves Behind Righteous Anger

July 23 (Bloomberg) -- In the year since I stepped down asthe special inspector general of the Troubled AssetRelief Program, the sadly predictable consequences of thegovernment’s disparate treatment of Wall Street and Main Streethave only become worse. As the banks amass size and power, MainStreet continues to get pummeled.

Part of the current economic malaise can be traced directlyto Treasury’s betrayal of its promise to use TARP to “preservehomeownership.” The Home Affordable Modification Program hasbrought little meaningful improvement, with fewer than 800,000ongoing permanent modifications as of March 31, 2012, a numberthat is growing at the glacial pace of just 12,000 per month.