Bailout Overseer Says Banks Misused TARP Funds

[Hissyspit]

Source: Washington Post

Bailout Overseer Says Banks Misused TARP Funds

By Binyamin Appelbaum
Washington Post Staff Writer
Monday, July 20, 2009
Many of the banks that got federal aid to support increased lending have instead used some of the money to make investments, repay debts or buy other banks, according to a new report from the special inspector general overseeing the government's financial rescue program.

The report, which will be published Monday, surveyed 360 banks that got money through the end of January and found that 110 had invested at least some of it, that 52 had repaid debts and that 15 had used funds to buy other banks.

Roughly 80 percent of respondents, or 300 banks, also said at least some of the money had supported new lending.

The report by special inspector general Neil Barofsky calls on the Treasury Department to require regular, more detailed information from banks about their use of federal aid provided under the Troubled Asset Relief Program. The Treasury has refused to collect such information.

Read more: ttp://www.washingtonpost.com/wp-dyn/content/article/2009/07/19/AR2009071901770.html?nav=hcmodule

[Birthmark]

1. I'm sure we're all surprised by that.

No one could have forseen the banksters misusing the TARP money. :sarcasm:

[Zhade]

33. But remember, "Thank God It Passed!"

The rallying cry of the willfully ignorant -- or monumentally stupid.

[kimmylavin]

2. Great, its been overseen.

Can anyone actually DO anything about this?

[TheEuclideanOne]

14. I was thinking the same thing

Sounds like they didn't really understand what their role was. You might as well have called the entire country overseers. :wtf:

[ohio2007]

30. YES !! Congress can vote "YES" to another badly needed bailout

[FrenchieCat]

3. reports through the end of January? Is this supposed to be "Breaking" news?

Cause I think that we already knew this....
But I guess some more outrage is always in order,
because while allowing folks to believe that this had something to do
with the current administration
it gain help us gain credibility just in time for Health Care reform.

GOP maneuver Brilliantly played!


Bail-Outrage: Misuse of Funds, Lack of Transparency a National Disgrace
Posted Nov 11, 2008 03:37pm EST
by Aaron Task in Newsmakers, Recession, Banking
http://finance.yahoo.com/tech-ticker/article/125352/Bail-Outrage-Misuse-of-Funds-Lack-of-Transparency-a-National-Disgrace?tickers=GS,MS,JPM,BAC,C,WFC,XLF




TARP funds misuse
12/29/08
http://activerain.com/blogsview/856477/tarp-funds-misuse



TARP bailout misused: Soros
Mon Jan 19, 2009 3:43pm EST
http://www.reuters.com/article/businessNews/idUSTRE50I4XZ20090119?feedType=RSS&feedName=businessNews


Banks Accused Of TARP Misuse
Berkeley, Calif.-based group tells Geithner and Bernanke that JPMorgan, Citi, BofA and Goldman are misusing TARP funds by financing Pfizer-Wyeth deal.

By Editorial Staff, American Banker
February 2, 2009
http://www.iddmagazine.com/news/189800-1.html

[InfiniteThoughts]

4. and the drama continues ...

with everyone in the Treasury Dept trying to avoid looking at the issue in the eye and levy hefty fines on these institutions .. i am sure that is some clause that they would have missed adherence ... all it takes is for some senior govt employee to grow some spine and bring erring financial companies to justice ...

[aquart]

5. Wow. What great oversight.

Must have thought we meant "overlook."

[corpseratemedia]

6. isn't it great now..we can have an openly corrupt government

and we get to sit and watch because those who oversaw this theft and all the broken promises are also complicit

none of the politicians responsible for this gargantuan criminal act give a shit about how they'll be immortalized as scummy lying criminals for human eternity

[BobRossi]

7. This can only mean one thing.....

More Goldaman-Sachs employees to be appointed to the Obama administration.

[nc4bo]

8. We knew this already and KNEW it without even being privy to the same info. nt

[AlbertCat]

23. We knew this already

Charles Dickens knew this in the 1840's!

We've known for a fact that Capitalism cannot be trusted and must be regulated since the friggin' Industrial Revolution.

[midnight]

9. What was the tip off? The vacations or the bonuses?

[No Elephants]

10. Gee, I guess it was too much to expect for anyone to see this coming and put

more conditions in the bailout, plus stiff penalties. (Ditto the stimulus.)

We had at outgoing administration, and incoming administration, Congress and the Fed on this. Supposedly the very best and brightest in our nation.

At least, Dodd tried to put in some limits on compensation in the stimulus bill, but they asked him not to, and he caved.

[MrMickeysMom]

11. Well, it was time for another Monday morning response to the WH, anyway...

I'm going to have to keep writing and writing and writing and writing.

It's OUR MONEY, and we are mad as hell and not going to tolerate this the result of 30 plus years of deregulation, whilst Treasury continues to be run by the same boys who got us in trouble.

Bonus note, IT'S OUR MONEY, not the insurance industry. We want the CBO to score single payer (Medicare for All)

Damn it.

[closeupready]

12. I take it this is from the "No Shit, Sherlock" file? Anyone know?

n/t

[JayMusgrove]

13. Folks, you have to remember this was the BUSH bank bailout..

Knowing how well he managed to ruin everything in 8 years, who should be surprised by this mere $350 billion dollar "oversight"?

The money went out the door at Treasury before Obama got to DC.

[Bluenorthwest]

19. Then why does he not shout about it?

Leonardo DaVinci said "He who does not punish evil commands it to occur." I agree with Leonardo.

[Romulox]

25. President (then Senator) Obama forcefully advocated for the TARP.

"The money went out the door at Treasury before Obama got to DC."

This is simply false.

For example:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aDRI3F1soZ8M

[L0oniX]

15. YAwn ...I expected this. n/t

[slampoet]

16. Why Does no one Get FIRED??

You can get fired for taking too many McNuggets for your meal break but these fuckers have lifetime employment?

You would think a responsible person would fire them for their own safety just to keep them from getting tarred and feathered.

[varelse]

17. they get bonuses (nt)

[nc4bo]

18. and don't forget those extra special Golden Parachutes. nt

[Wednesdays]

20. K&R

:kick:

[Eric J in MN]

21. The UK put lending requirements as a condition of getting bailout money.

The US didn't.

[City Lights]

22. OMG, this pisses me off...

In a written response, the Treasury again rejected that call. Officials have taken the view that the exact use of the federal aid cannot be tracked because money given to a bank is like water poured into an ocean.

Swell. :puke:

Nothing to see here...

:argh:

[No Elephants]

34. They could have been required to segregate the funds. If there's anything banks know

how to do, it's open separate accounts and track money.

Besides, you can approximate how they used the money by knowing what they spent money on after getting the TARP money. If they did not spend on proper TARP purposes after getting TARP money, they should still have the TARP money, right?

[Romulox]

24. Bailout advocates (including then Senator Obama) demanded no stringent limits be placed on TARP.

There was OMG NO TIME!!!!!11!!!! to actual read the bill, either, if you'll recall.

[benld74]

26. Well, color me WTF?!

[Vidar]

27. The obvious solution is to give them another 23 trillion dollars.

[No Elephants]

35. *Slaps forehead* But, of course! (How on earth did I ever overlook that?)

[bemildred]

28. But they did so well before. Who could have predicted this sudden veer into misbehavior? nt

[ohio2007]

29. throw him under the bus and goose up those overdue bonus checks

:sarcasm:

[iris27]

31. Gee, THERE'S a shocker...

:banghead:

[pinniped]

32. I'm just as shocked as the congrass clowns are sure to be.

The Treasury has refused to collect such information.

That says it all.

Fire these clowns.