Bailout Overseer Says Banks Misused TARP Funds

[notesdev]

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.

Doing so is "essential to meet Treasury's stated goal of bringing transparency to the TARP program and informing the American people and their representatives in Congress about what is being done with their money," the report said.

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.

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the rest of the story:
http://www.washingtonpost.com/wp-dyn/content/article/2009/07/19/AR2009071901770.html

[MichiganVote]

1. Oh now THIS is a shocker. And what will be done? Nada, nothing.

[rhett o rick]

7. .

[Hydra]

2. Raise your hand if you are surprised!

Just as we predicted. And we caught so much hell at the time from the bailout backers of DU.

[Mind_your_head]

3. SHOCKED!!! I.AM.SHOCKED!

:sarcasm:

F*ckers. They should ALL be in jail or pokers jammed up their lying asses (as in the Inquisition).

[Riley18]

4. Too bad they don't feel the same way about tracking every penny we earn.

[Mind_your_head]

5. Oh, they do.

Every penney that we earn "belongs to THEM"...they've made sure of that!

[FreakinDJ]

6. 2 Tiered interest rate on the borrowed TARP funds

Money you use to free up credit markets 1.5%

Money you use to enrich your own profits 23%

[truedelphi]

8. I'm not clear. Are you

Saying that is the way it is, or suggesting that that is the way it should be?

It would be great if that was the way it was.

But even that might not be enough of an incentive. These financial institutions are itching to buy up utilities and other items of necessity that are now run by publicly owned entities or by local governments.

Chicago recently sold out or privatized its responsibility for the parking meters, and those fees have jumped 400%. (Or so I have heard.)

Coming soon - your local water utility gets sold to Bank of America. And the price of your water only goes up some 350%.

[FreakinDJ]

11. That is the way it should be

and if hiking interest fees and Tax payer funds loaned to failing banks retroactively is a means to prevent them from enacting any more Globalisation/Privatisation Crap on us - then so be it.

[Autumn]

9. Color me surprised

NOT. "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." Now that is fucking priceless.

[MarjorieG]

10. Let's first lay blame at TARP money given last fall with no strings.

[DCKit]

12. Somebody had to prop up the price of a barrel of oil to help our "friends" in OPEC...

(while collecting a healthy fee). A billion just doesn't go as far as it used to and the rent on those oil tankers adds up fast.

[TheWatcher]

13. Well, Bernanke Did tell Congress we couldn't see what was done with the money and where it went.

I mean, The Mafioso sits there and TELLS you how they are screwing you.

The Problem is, people would rather listen to babbling, gurgling nonsense about "Green Shoots" and "Less Bad", and "Not as Horrific as Expected", and "Recession Actually Over six months ago."

Welcome to America, The Asylum.

The only question left is, How Long Can They Keep This Up?

[dixiegrrrrl]

14. Yep, he did. From the get go.

So why is Congress running around saying " We've been duped !!" and claiming they had no idea
Paulson was going to screw us and pretending to be outraged about it?
Sheesh.

[truedelphi]

15. We are so totally screwn. The Final Statement that you posted:

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.

This reminds me of an individual who stated to the press that he thought the notion that people would hack another's bank acocunt was ridiculous. he PUBLISHED his dr lic #, social security number and bank account numbers.

Hardly surprising when a few days later, he found out his accounts were wiped clean. But he was surprised byit, though he reversed his very naive attitude regarding theft because of these events.