The irony of this whole situation is that the TARP program was intended to be a way for banks to borrow money from the federal government and NOT a bailout program. That was of course before the government got their hands on all the rules and regulations. Once you start to control the free trade markets and how they operate they will cease to exist.
A lot of people have recently told me that they blame corporate America for the problems that we are currently facing but if you look at the housing bubble for example you will notice that two of the largest holders of home loans were government backed entities. PLUS when the banks get in trouble they are covered by the FDIC who has unlimited funds DIRECTLY from the Fed. Just some food for thought...
Neil Barofsky says a lot could go wrong with bailouts. He wants better disclosure and stronger conflicts rules. Sparks controversy over total cost.
WASHINGTON (CNNMoney.com) -- The top cop tracking the $700 billion bailout program said Monday that he's concerned federal officials are ignoring his proposals for preventing tax dollars from being wasted or pilfered.
Neil Barofsky, the special inspector general overseeing the Troubled Asset Relief Program, released a 260-page report detailing a long list of concerns about government efforts to prop up hundreds of banks, Wall Street firms and auto companies.
The report criticizes the Treasury Department the most for its unwillingness to adopt some of his recommendations.
Barofsky cites two examples: He wants Treasury to force bailout recipients to keep track of how exactly they are spending TARP funds. He also wants officials to erect a "firewall" to prevent private investment managers -- the kind hired to manage and invest taxpayer dollars -- from taking advantage of insider knowledge.
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