Investigation Looks Into Political Pressure In Bailout Distribution

[Purveyor]

Source: LA Times

By Ralph Vartabedian
February 13, 2009

Amid growing public consternation with the federal banking bailout, the Treasury Department's special inspector general has opened an examination of political influence in handing out some of the $350 billion in federal bank bailout funds, The Times has learned.

The audit, which has just begun, is broad in scope but will focus on lobbying activities by financial institutions and what the special inspector general, Neil Barofsky, has called "outside influences."

The Treasury Department has released $294 billion as of last month, with most of it going to the banking industry in exchange for preferred stock and other bank securities.

When the department launched the banking rescue plan last fall, it set up a process for awarding the massive sums of money outside of public view and with criteria that were not disclosed, even to Congress.

The secrecy fueled suspicion that political influences would be difficult to restrain with so much money at stake and with the banking industry in such disarray. Within months, reports began to surface that banks were actively lobbying for the funds and that members of Congress were exerting their influence on Treasury officials to give money to specific banks.


Read more: http://www.latimes.com/news/nationworld/nation/la-na-tarp-investigation13-2009feb13,0,7813816.story

[boomerbust]

1. Let's see

Bush appoints Hank Paulson to Treasury. Hank Paulson CEO of Goldmann Sachs. Nuff said.

[HopeHoops]

2. WHAT? BushCo people handing out free money to friends??? Who could have thunk a think?

[Frustratedlady]

3. Still, I wish Barney Frank and others would keep everything above board.

It only takes one instance of favoritism for the Repugs to shout, "Well, they did it too!" Nail them first and then show favoritism. :P

[No Elephants]

4. What did Frank do wrong? Unless there was a quid pro quo, I don't see anything wrong. Frank re-

presents Massachusetts. That is his primary job in Congress. Was he supposed to leave it all to Paulson, without trying to make sure that ANY of that money came to rest a blue state like Massachusetts?

These stories say, "OOooooooo, Frank did this." But they don't say anything about what he did was wrong. At least wait until someone alleges some improper conduct on the part of Frank before throwing Barney under the bus.