Saturday, January 10, 2009

Democrats want to redo the bank bailout

Democrats want to redo the bank bailout. I must admit I agree with them on this one. We have wasted hundreds of billions of dollars bailing out banks and gotten nothing in return. There is no accountability of where the money has gone. In some cases, the money was used so one bank could buy another bank.This is certainly not what Congress or the American taxpayers thought would happen. Secretary of the Treasury Paulson is the worst Treasury Secretary in American history. He should face criminal charges for malfeasance of public office. Fortunately, half of the 700 billion has not yet been spent. I just wish someone besides Rep. Barney Frank would be in charge of redoing the bailout. I have no confidence in him. He is partly responsible for the mess we are in.
Obama team, Rep. Frank eye bailout fund overhaul
By Caren Bohan and David Lawder Caren Bohan And David Lawder Fri Jan 9, 8:22 pm ET

WASHINGTON (Reuters) – President-elect Barack Obama and a key Democratic lawmaker revealed plans on Friday to overhaul the government's $700 billion financial rescue fund as a way to aid struggling homeowners and speed the flow of credit.

An Obama transition official on Friday confirmed that the new administration planned a broader approach for the second $350 billion of the U.S. Treasury's Troubled Asset Relief Program. Some money would be aimed at stemming record foreclosures and helping cash-strapped local governments, which have been forced to cut staff and services.

U.S. Rep. Barney Frank, chairman of the House Financial Services Committee, said he was planning to require money be devoted to housing. Aides said Frank's legislation, which would also tighten restrictions on the use of TARP funds by recipients, would demand about $40 billion for foreclosure relief. [nN09294312]

The efforts underscore growing dissatisfaction in Washington over the handling of the bailout fund by departing Treasury Secretary Henry Paulson.

Lawmakers have complained that his approach to devote the first half of the TARP money largely to recapitalize banks as a way to lessen the worst credit crisis in a generation has failed to slow soaring foreclosures.

"There's just no money that's gone in that direction. This one's not even arguable," Elizabeth Warren, the chairman of a TARP congressional oversight panel, told ABC News. "The TARP funds themselves have not been used in this way despite congressional statutes requiring them to do so."

A report from the panel on Friday also sharply criticized the Treasury's lack of oversight, saying there were "significant gaps in Treasury's monitoring of the use of taxpayer money," including failure to ask financial institutions to account for what they have done the funds. Full story here.

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