Bailouts

TRAP Waste, Fraud and Oversight

Posted on Tuesday, April 21, 2009

That fraud, accountability and transparancy have emerged as problems with TRAP should not come as a suprise...the issues are almost hand in hand with government programs. But the issue is much bigger when we're talking about a possible $3 trilion price tag not $700 billion now.

A recent report from the Office of the Special Inspector General for the TARP. Topping the list is conflict of interest rules and beneficiary disclosure prposed for firms participating in the program. The public HAS to have more information abouthow firms that are taking our money are using it. Surveying bank lending activities by the Treasury is not enough!

In particular the TALF program (Term Asset Backed Securities Loan Facility" established to improve the consumer loan market y providing investors up to $200 billion is now on the radar as it may increase to $1 trillion. Using the same ratings agencies that got us into this mess to assess the risks here is insanity (defined as doing the same thing again but expecting a different result).


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Comments

a sad commentary on bank's distruct of government. when one kid on the play ground keeps changing the rules when he thinks he's not winning, the other kids will pick up their toys and go home.

almosthadenoughofitall 5/8/2009

Despite claims of increased lending by Chase, B of A, Wells, etc., the Wall Street Journal reported yesterday that the banks have actually loaned 23% less since receiving the TARP funds.

cash2close 4/21/2009
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