Bailout Lacks Oversight Despite Billions Pledged

[sabra]

Source: WP

Watchdog Panel Is Empty; Report Is Unfinished

In the six weeks since lawmakers approved the Treasury's massive bailout of financial firms, the government has poured money into the country's largest banks, recruited smaller banks into the program and repeatedly widened its scope to cover yet other types of businesses, from insurers to consumer lenders.

Along the way, the Bush administration has committed $290 billion of the $700 billion rescue package.

Yet for all this activity, no formal action has been taken to fill the independent oversight posts established by Congress when it approved the bailout to prevent corruption and government waste. Nor has the first monitoring report required by lawmakers been completed, though the initial deadline has passed.

"It's a mess," said Eric M. Thorson, the Treasury Department's inspector general, who has been working to oversee the bailout program until the newly created position of special inspector general is filled. "I don't think anyone understands right now how we're going to do proper oversight of this thing."

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2008/11/12/AR2008111202846.html

[saltpoint]

1. It looks to me like Paulson is essentially a pirate with a tie and suit

gleefully dancing over taxpayer largesse.

I apologize in advance to pirates out there who will likely take umbrage at my comment.

[Baby Snooks]

5. The new robber barons...

There is also no oversight over the Federal Reserve which so far has loaned around $5 trillion to various banks and brokerages and of course is refusing to disclose any information with regard to $2 trillion of it although in reality Congress may not realize it is $5 trillion rather than $2 trillion. Sorry but the real oversight should have been on the part of Congress. Which has once again proven it could care less about anything but pulling a fast one on the American people.

And the collateral for all of it? The taxpayer. The reason why Paulson decided the government didn't need the assets of the banks it is bailing out is simply because in the end the bail-out can be financed by the taxpayer. Which should have been the point Congress pulled the plug. But of course it won't. It has the same attitude. Mainly because at this point no doubt many of these banks are being quite generous with their campaign contributions. Also paid for by the taxpayer. See a pattern?

In reality the new administration will have to raise taxes to cover the "largesse" of the old administration and of course that will guarantee one thing. That the Republicans will take back the White House and Congress in 2010. And in the meantime, the oligarchy is doing just fine, thank you.

The rich become richer. The poor become poorer. And the middle-class pays for it all. The new American way.

[saltpoint]

9. Yes. Obama probably is on to this too, and my hope is that

he can frame things in a way that allows for some relief leading to possible reform.

God knows we could use some on the money front.

[DeepModem Mom]

2. K&R

[ben_meyers]

3. Hard to believe that this finely crafted piece of legislation

that was read by and voted on by our wonderful elected representatives would turn out to be a piece of crap boondoggle isn't it.

[WriteDown]

4. Thank you Pelosi.....

Are there ANY plans to kick her out after Obama takes office? Depressing.

[Baby Snooks]

6. She should have already been kicked out.

The people in San Francisco should have kicked her out at the polls - want to protest Nancy Pelosi? Boycott San Francisco.

[WriteDown]

7. That would mean not going to see my sister ever....

Darn.

[ixion]

8. Remember when Paulsen got down on one knee in front of Pelosi

and begged her to sign over billions to him? I said at the time that it showed his lack of seriousness about the issue, and should be cause for alarm.

Now that he has the money, he's decided to do with it what he wants. Who'd have thought? :eyes:

[bdamomma]

10. the biggest heist in US history.

Paulson should be arrested (ex CEO of Goldman Sachs), that is where his loyalties lie.

[ben_meyers]

11. On what charge?

Our Congress, controlled by the Democrats, passed this insane bailout bill, voted for by all 3 Senators running for the White House BTW, that handed the keys to the Treasury and the combination to the vault to Paulsen.

[bdamomma]

14. aiding and abetting a criminal or criminals

the * regime.

[Acadia Blue]

12. Paulson and Bush are stealing every penny they can!!!!!!! And giving

it to their rich friends.
This is what happens almost every election in bananna republics and that is what these filthy pigs have done to our country. They have stolen taxpayer money and given it to rich thieves.

[Zorra]

13. Great. Now these crooks can just take the money and run as fast as possible,

and there's no cops to stop them.