Archive for the ‘secrecy’ Category

Secrecy In Bailout Runs Counter To Obama Transparency Pledge

January 23, 2009

O.K., this issue still belongs to George W. Bush, Hank Paulson and a bunch of stupid and crazy Republicans.  But a bunch of Democrats better get it ironed out and fast or they’ll earn a place in stupic and crazy lore…

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A massive backlog of bank applications for emergency federal aid has provoked widespread frustration over how the Treasury Department is allocating rescue funds and raised suspicions among executives that political connections are playing a role, industry officials and regulators say.

By David Cho and Lori Montgomery
The Washington Post

The delay is pushing bank executives across the nation to lobby their lawmakers, financial groups and friends within the federal government to try to expedite their requests.

“I think there is a suspicion among a large number of our members that it’s who you know rather than the merits of the application,” said Camden Fine, chief executive of the Independent Community Bankers of America. “I don’t know that to be a fact, but I know there is a strong undercurrent of suspicion among my members that you have to have some sort of connection before you get the golden touch or the blessing from Treasury to get money.”

Treasury Secretary Henry Paulson, seen here on January 12, 2009, ... 
Treasury Secretary Henry Paulson was once clearly to blame.  No more….(AFP/Getty Images/File/Mark Wilson)

Since the Treasury announced the program in October to inject federal aid into banks in exchange for equity stakes, about 350 banks have received the money, a fraction of the 1,600 institutions that have asked, according to regulators.

Treasury officials have been secretive about why certain banks received the money first…..

Read the rest:
http://www.washingtonpost.com/wp-dyn/content/
article/2009/01/22/AR2009012203930.html
?hpid=topnews

Timothy Geithner testifies before the Senate Finance Committee ... 
Clearly not an expert in taxes.  Can he manage banks, bailout? Timothy Geithner testifies before the Senate Finance Committee on his nomination to be Treasury secretary at the Dirksen Senate office Building in Washington, DC.(AFP/Mandel Ngan)

Rep. Barney Frank chairs the panel that wrote much of the bailout law.

Rep. Barney Frank chairs the panel that wrote much of the bailout law. (Mannie Garcia – Bloomberg News)