Sununu Sits On TARP Oversight Panel, And On Board Of Bank That Administers TARP (TPM)

[chill_wind]

Sununu Sits On TARP Oversight Panel, And On Board Of Bank That Administers TARP
By Zachary Roth - February 28, 2009, 12:00PM

John Sununu, who serves on the Congressional Oversight Panel monitoring the government's bailout progam, has joined the board of a subsidiary to Bank of New York Mellon -- a firm that, in addition to receiving bailout funds, has been hired by the Treasury Department to administer the program.

Given that the Congressional Oversight Panel (COP) is charged broadly with assessing how the TARP program is working, in order to help Congress determine whether to continue injecting capital into the financial sector, the arrangement would appear to create a significant conflict of interest for the former New Hampshire GOP senator.

(...)

Just as significantly, it was also picked to be the master custodian for the bailout funds. According to reports, that means it's charged with handling accounting and record-keeping for the program, and even with tracking limits on executive pay at banks that got TARP money.

(...)

Sununu's conflict, then, appears clear. As a member of the COP, he's in part responsible for evaluating whether taxpayers got a good deal through TARP, and for assessing whether Treasury and the banks are doing enough to track the bailout money, as well as whether banks are using the money to make loans, as they were supposed to. On the broadest level, COP's job is to help Congress figure out whether the TARP program is working as it should, and how to adjust it going forward. It's not hard to see how that responsibility could conflict with his activities as a member of the board of a company that both administers the TARP program, has received funds from it, and could potentially be in line for more.

more at link: http://tpmmuckraker.talkingpointsmemo.com/

[spanone]

1. knr

[Warren Stupidity]

2. wait, what the heck?

forget Sununu, obviously he needs to resign from something, but how can Bank of New York Mellon both receive funds from TARP and administer TARP? :wtf:

[Sarah Ibarruri]

3. There's the smell of something festering in that doesn't it? nt

[Triana]

4. Exactly. That seems to be the issue here.

WHY did Treasury choose a bank/entity to administer TARP - which is also receiving money from TARP?!


:wtf:

Am I going to need THIS?:

:mad: :grr: :mad: :grr:

[chill_wind]

5. DK: "The fox is now guarding the golden chicken coop,"

said Rep. Dennis Kucinich (D-Ohio), whose House subcommittee is investigating taxpayer bailouts.

Bank of New York Mellon scored $3B bailout, also oversees entire program

BY Douglas Feiden
DAILY NEWS STAFF WRITER

Sunday, February 22nd 2009, 2:41 AM

A New York bank that won $3 billion in taxpayer bailout money was hired by the government to monitor all banks that pocketed public cash - including itself.

Bank of New York Mellon cashed in under the $700 billion Troubled Assets Relief Program - even as it was hired for $20 million to administer TARP money for the U.S. Treasury.

more: http://www.nydailynews.com/money/2009/02/21/2009-02-21_bank_of_new_york_mellon_scored_3b_bailou.html

BONY was picked in October: (NYT)
Bank of New York Mellon Will Oversee Bailout Fund

Published: October 14, 2008
http://www.nytimes.com/2008/10/15/business/economy/15tarp.html?_r=1&dbk

[AndyA]

6. Can you say

CONFLICT

OF

INTEREST?

[chill_wind]

7. All over the place. n/t