Hear: In Search Of Bad Guys : Planet Money On today's show we talk TARP, Treasury and solvency vs. liquidity.
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On today's Planet Money:

— The Treasury Department released a framework for regulating the financial industry this week. The plan calls for creating a systemic risk regulator to manage "certain large, interconnected firms and markets." While we still don't who is going to get the gig, the implications of the decisions they make will affect us for years to come. Adam Davidson lays out some of the possibilities.

— How you react to the other plan the Treasury Department announced this week, the one to get toxic assets off bank balance sheets, depends a lot on what you think is the problem with the banks in the first place. Is it a solvency or a liquidity crisis? Gregg Berman of Risk Metrics Group explains the difference between the two, using $50 million and an envelope.

— We've been looking for the bad guys in this financial crisis, but so far we haven't had much luck. Today we go to an expert, Neil Barofsky is the Special Inspector General for the TARP, the man charged with finding out who might be trying to defraud the government out of billions of dollars in bailout money.

Bonus: A letter from the Netherlands, after the jump.

Download the podcast; or subscribe. Intro music: Ida Maria's "Oh My God". Find us: Twitter/ Facebook/ Flickr

Gerdien Meijerink writes:

Who are the Dutch blaming?

Well, the banks. There has been anger at the appointment plus bonus of
Patrick Flynn, the new boss of ING who will receive 100, 000 shares with a worth of 400, 000 euros. Last week, the boss of a private bank (van Lanschot), Floris Decker apologized to the Dutch public about the banks behavior and the Dutch are waiting for other banks to apologize (none have done so yet).

And of course we blame America, but especially George Bush: he stands for an America that thinks it can shop its way out of a recession.We Calvinists never approved of that.