Roach Blasts Paulson, Treasury on Bailout

Monday, November 24, 2008 3:01 PM

By: Dan Weil

Stephen Roach, chairman of Morgan Stanley Asia, criticized the Treasury Department for how it has implemented the $700 billion Troubled Asset Relief Program (TARP).

Specifically, Roach takes issue with the decision by Treasury Secretary Henry Paulson to abandon the idea of buying soured mortgage securities from major financial institutions.

In an interview with Bloomberg TV, Roach said that was a major reason why Citigroup deteriorated to the point that the government had to bail it out.

“Citigroup raises the question of what’s going on with TARP,â€