A government watchdog warned that regulators need to be more aggressive in reducing exposure among major Wall Street firms if they want to eliminate concerns about "too-big-to-fail" banks, the Wall Street Journal reported today. Christy Romero, special inspector general for the $700 billion Troubled Asset Relief Program, said in a report released today that not enough has been done by government overseers to address the interconnected nature of the largest and most complex financial companies. The ties among major Wall Street firms that posed a challenge at the height of the 2008 financial crisis remain a problem, she said. The report also took aim at the Treasury Department's efforts to provide assistance to troubled homeowners, which have fallen far short of initial expectations. The report said that 46 percent of borrowers who received a mortgage modification through the government's Home Affordable Modification Program in the third quarter of 2009 wound up re-defaulting on their loans.
To review the SIGTARP report, please click here: http://www.sigtarp.gov/Quarterly%20Reports/April_24_2013_Report_to_Cong…