Panel Releases Scathing Report on Federal Bailout
An oversight panel charged with monitoring the federal government's $700 billion bailout program released a scathing report today, accusing the Treasury Department of failing to live up to its obligations to taxpayers about disclosure and how it proposes to fix the foreclosure crisis.
The second report on the government's Troubled Asset Relief Program was authored by a five-person, bipartisan oversight panel and released by the House Financial Services Committee. In the 45-page report, panelists said the Treasury Department hadn't helped borrowers refinance or deal with over-inflated mortgages.
"The panel's initial concerns about the (program) have only grown, exacerbated by the shifting explanations of its purposes and the tools used by Treasury," the report said, faulting the Treasury Department on a variety of things, including its approach to the foreclosure crisis.
Treasury Assistant Secretary Neel Kashkari, who leads the TARP program, told the Wall Street Journal that roughly $75 billion needs to still be distributed to banks as part of its $250 billion capital-injection program. "This capital needs to get into the system before it can have the desired effect," he said.
By Derek Kravitz |
January 9, 2009; 2:44 PM ET
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