Page last updated at 11:34 GMT,
Wednesday, 3 December 2008
Bail-out plan 'lacks oversight'By Steve Schifferes
Economics reporter, BBC News
The $700bn bail-out of the US banking system is
being carried out without adequate oversight,
according to the General Accounting Office (GAO).
The Congressional watchdog says that the US
Treasury is failing to monitor whether banks
have complied with requirements on executive pay.
And it says the US Treasury failed to address
"critical issues" when it changed the goals of
the rescue plan.
-snip-But the GAO report says that the Treasury "has
no policies or procedures in place for ensuring
the institutions... are using the capital
investments in a manner that helps meet the
purposes of the act."
The GAO pointed out that the major banks had
told them that the government investment would
not be viewed any differently from other capital,
and used to "strengthen their capital base, make
acquisitions, and lend to individuals and
businesses."
-snip-
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