It's something any bank would demand to know before handing out a loan: Where's the money going? But after receiving billions in aid from U.S. taxpayers, the nation's largest banks say they can't track exactly how they're spending the money or they simply refuse to discuss it. Full Story »
Posted by Michael Bugeja
The writer asked very important questions that for some reason our government refused to ask before approving the bailout. Well written and will hopefully bring more much needed attention to the issue.
All of these questions should have been asked by Congress and the Senate before they approved the bailout. I don't understand why they held several public hearings and went through the auto bailout with a fine tooth comb but just blindly gave the banks $700 Billion. Wait, actually I do know why - The finance and banking industry is by far the #1 contributor (bribes) to politicians.
One of the best investigative reports to date on the no-strings bailout of the banking industry with CEOs refusing to state where the money went--to bonuses, buyouts of other banks, or businesses and home owners. The writing of this report is exceptional, including the lead paragraph stating that no bank would agree to easy terms as set by Congress. The interview with Elizabeth Warren, who chairs an oversight committee set up by Congress to oversee the bailout, makes this a must-read.
Treasury Secretary Henry Paulson not only created the original problem to begin with, concerning lack of oversight; he has worsened it with a "develop the rules as we go" mentality that threw good money after bad. Now that the government is giving money away without interest to banks, the Feds also have undermined the entire economic system, making savings irrelevant.
Treasury Secretary Henry Paulson said the department is trying to step up its monitoring of bank spending. “What we’ve been doing here is moving, I think, with ... More »
Investigative reporting is the best kind of reporting journalism can do asking the questions we can't ask, going where we cannot go, and applying the pressure of irate public opinion. This is a must read for everyone, including the FBI.
"We're choosing not to disclose that?!" What the Hell kind of attitude is that? Have banks become so arrogant that they feel they answer to no one? Sort of like Bushies? What would be their attitude if we said: "All right, if you really choose not to disclose that, we want the money back?" With this kind of government incompetence, it's no wonder we lost the Iraq war.
The article does a good job of reporting the unanimity of the banking corporations to keep secret the usage of taxpayer moneys. A finger is loosely pointed at something in government that did not require reporting. The responsibility should be tracked to give more depth to the investigation, if it is to aid in correcting the situation. It seems the legislators who allowed lax legislation should be identified. It seems the administration persons who did not administratively require reporting should be identified.
The first linked article give some investigation into where the funds went: to executive bonuses. Investigations into the margins of where frivolous funds went may help pressure bush's bank bankrupter friends to be more forthcoming. The second link shows the money used to finance a merger of banks.
Who,what, where, when, why.go ahead look for the answers! The banking committees and the treasury's idiots are not interviewed now or when the money was (not) discussed. They knew it was not strings and designed it that way. This lack of accountability by both AP and the Government is criminal and designed to dodge any responsibility ...remindes me of the budget/spending for Iraq.
AP never tracked the criminal the history of Paulson or any of the private meetings to give the future to the greed freaks that created the mess we are experiencing. People that do not agree with AP are not mentioned ...there coverage is yes man to the powers that be.
This article does what good writers should do, ask questions and don't make assumptions. However, it oversimplifies the problem of a bank tracking assets that are liquid.
Talk about a shocker! The government lends money to a group of people that have proven to be irresponsible when dealing with money and are appalled at the result. The government gets what it deserves. Leave the private sector alone, if they die they deserve to die.
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