Elizabeth Warren, the chair of the Congressional Oversight Panel charged with monitoring the bank bailout, appeared on MSNBC this morning to talk toxic assets. On Joe Scarborough's Morning Joe, Warren warned of the hard-to-price assets that are still lingering on many bank's balance sheets. "By and large, the toxic assets that brought us to this point are still on the books of the banks," she said.
Warren, who's been leading the call of late to reconcile the shoddy assets weighing down the bank sector, warned of a looming commercial mortgage crisis. And even though Wall Street has steadied itself in recent weeks, smaller banks will likely need more aid, Warren said.
Roughly half of the $700 billion bailout, Warren added, was "don't ask, don't tell money. We didn't ask how they were going to spend it, and they didn't tell how they were going to spend it."
She also took a passing shot at Tim Geithner - at one point, comparing Geithner's handling of the bailout money to a certain style of casino gambling. Geithner, she said, was throwing smaller portions of bailout money at several economic pressure points.
"He's doing the sort of $2 bets all over the table in Vegas," Warren joked.