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Treasury May Not Make Banks Report Back On How They're Spending Bailout Money
Check out this nugget from page 15 of the GAO report on how Treasury is spending the bailout money:
[Treasury's Office of Financial Stability] has not yet determined if it will impose reporting requirements on the participating financial institutions that could enable OFS to monitor, to some extent, how the financial institutions are using capital infusions.
In other words, Treasury may not force banks even to tell the department how the banks using the billions of dollars they're getting. It's a no-strings-attached deal, it would seem.
More to come...
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Josh
Zachary
Secrecy is an invitation for abuse. Giving away our money without letting us know how it is being spent is not acceptable...but without a DoJ and having a congress who just stands and watches, we are powerless to stop it.
We call this a democracy? Taking our money and giving it out without telling us what it is being used for, without oversight or accountability... or consequences for bad actors and then make it too expensive and costly to elect competent leaders all leads to one place....the cards are all being dealt by the wealthiest people...the very ones our people's government should be protecting us from.
Are we too late to turn this around? I'm thinking we need 'armed' regulators, starting with the DoJ. Someone to shoot Paulson in the leg so he knows we are serious and he's not running off anywhere. He needs to make better deals...period.
December 2, 2008 4:24 PM | Reply | Permalink
This is nuts. We give somebody $10 a month in food stamps and impose very strict rules as to how that benefit can be used. And then we turn around and shovel hundreds of millions of dollars to some fat cat bank, and we're not even supposed to ask what they intend to do with it????
December 2, 2008 8:26 PM | Reply | Permalink