BLOW THE WHISTLE: Bailed Out Firms Wasting Money? Tell Us About It

Ever since the government decided to spend hundreds of billions of dollars propping up troubled banks, there have been reports of those banks and executives spending funds on extravagant, seemingly gratuitous items.

Whether it was the insurance giant A.I.G. spending $440,000 for a week-long retreat for executives, Merrill Lynch CEO John Thain sinking more than $1 million into office decorations, Bank of America hosting a conference call to help defeat the Employee Free Choice Act, or Wells Fargo organizing (then canceling) a Vegas retreat, head-scratching expenditures seem to be the order of the day.

The Obama administration has pledged more transparency as the TARP program proceeds. But much of the sunlight will come through enterprising journalism. The Huffington Post is invested in following this story, and we need our readers' help. If you're aware of wasteful or unnecessary spending or instances that call into question the use of TARP funds, please let us know. Tell us what you see and know, what you are hearing in the office or on the street by emailing [e-mail]. Anonymity is, of course, guaranteed.

The spending of taxpayer money to help resuscitate the nation's economy is one of the major stories of the year. As such, it demands extensive scrutiny. This is a request that you help us with the task.

Comments

[jamie461]

I'd like to recommend that TARP stopped being referred to as a "bailout." The word "bailout" implies that the money was given away to the banks. FAR from it. The banks who took TARP funds gave the federal government preferred stock in return, and the government is receiving a premium on those funds. In other words, TARP is PROFITABLE for taxpayers. The banks have to pay 5% interest on the money, and that interest rate jumps to 9% if the funds are not repaid within 3 years. Even if there is a "worst case scenario" -- a bank fails that received TARP funds -- the taxpayers get repaid FIRST out of the total assets of the bank, BEFORE common stockholders. No one is complaining about that, by the way.

I would sincerely like to see HuffPo, and other media outlets, start covering this story more ACCURATELY. There is a HUGE amount of misinformation in the media, and it is angering and confusing the public. You can either be part of the problem, or part of the solution. I realize blasting scary headlines is more entertaining, but it's really getting out of hand.

[dameofdismay]

A more accurate title to this article would say "firms receiving TARP money", not "bailed out firms". Not all firms (banks) receiving money were bailed out. The treasury wanted more money in the market so the top banks were pretty much forced to take TARP money weather they wanted it or not. Just sayin'.

[mikekopac]

forced to take the TARP money.....who said, Paulson and the Banks... and you believe that.....
if this is true why can't they give the money back?

why didn't Paulson put in a requirement that they lend the money?.....this was done in Europe no?

this whole program was just a way for Paulson to scare us into giving billions to his buddies...wasn't he PERSONAL FRIENDS with some of the men that got this money

this is not complicated... should you post again please answer the above questions

[camper65]

Real headline - "Congress wasting BILLIONS - no end in sight!"

[chosenson]

Bailed out banks are inventing ways to scr # w the public. Banks like TD and Bank of America "upgrade" our checking accounts without our knowledge so they can rip extra fees out of our hands. Case in point: my checking account was a TD Bank free checking account. Now they are telling me that I have to maintain a balance of $100 or they will charge me a $15 fee. Why is a bank stipulating that an non-intere­st-bearing account should have a balance of $100? That $100 should be in my SAVINGS account where it can earn a few bucks interest!! But NO the bank wants me to put $100 in an account where it does not pay me interest -- OR ELSE!

If thousands of people keep $100 in a checking account, the bank will have millions of dollars to lend and earn interest on, but will not be required to pay interest to the account holders. THIS IS THE ULTIMATE RIP-OFF of John Public. Everyone who is experiencing this tactic from their bank should close their accounts and take their money elsewhere. I killed my TD account and took my business to Wachovia.

[SolarPowerGuy]

Thank you for offering to investigate what appears to have been one of the largest, and speediest, taxpayer ripoffs in American history.

When will you provide an update? It would be interesting to know whether you have any credible leads to follow by now. You've had this article up for a few days.

Of course, if you believe it would compromise your investigation to tell us anything, then don't. But I am curious.

[dadw5boys]

We were FED up by the Bush Administration ir is hard to wait for Obama to get it fixed !

[frist902]

Agree....Not sure why the federal government issued raises this year when the majority of businesses are getting zero dollars......By the way this includes Banks.

[philly1811]

excuse me but i am a former government employee, and i need my raise. thank u very much

[ordinaryguy]

suck it up like everyone else

[LMurphy418]

Those of us that have jobs must take a step back and be thankful. My company just announced no bonuses and no raises for 2009.

Su k it up and go on. The rest of us are.

[philly1811]

excuse me but i am a former government employee, and i need my raise. thank u very much

[frist902]

As the rest of us do....but let's not call the kettle black without looking in our own backyard!

[twokidsonecat]

Just because you have a government job doesn't mean you are protected from the recession. Think of others, not just yourself.

[readmewell22]

People are tired of this! TIRED OF IT! FED UP!

So, all of the scoundrels need to be put on notice in every major corporation.... YOU ARE BEING WATCHED!!!

[2smart2brepublican]

I remember that once upon a time there was a website called FuckedCompany.com that allowed employees to whistle blow on employers. If I remember correctly, it was shut down over a slander suit, so I urge the Huffington Post to check their facts (not be Fox News, et al) before going public with the results of their investigation. I rather like this website and would not have anything damage its ability to operate.

[mssreader]

When I was in the corporate world we were given bonuses for results and pay raises for same. What happened that things were turned around for the upper echelon who caused this mess! Way to many chiefs and too few slaves as we used to say.

[dreamzforreal]

Morgan Stanley had a get together for all their newly announced MDs on January 26th. All the people were put up at St. Regis Hotel at approximately $600 a night and the MDs from world over flew business class with their spouse (absolutely unecessary in this environment). Tickets can range as high as $5,000 for a round trip from India. All this money could have easily been saved by welcoming the new Mds on video conference. What clowns

[RTIII]

Sometimes - especially for first time introductions - a face-to-face meeting is so vastly superior to "video conferencing" that it doesn't even compare.

Face-to-face meetings ARE vital for business, and anyone who doesn't know that doesn't know business. This isn't to say _every_ meeting has to be face to face, but the real gripe here could be use of "business class" instead of "economy."
.

[HRhuffinstuff]

They can tighten their belts as much as I've had to. Fly coach. Stay at the Howard Johnson.

[bluguy8]

wow- investigative journalism -its about time

[adamsmith3]

You should also start up a section on government waste. Corporate excess, we could go on for a few pages. Government wasting money though, we could write an encyclopedia set.

[RTIII]

Boo Hiss.

Spoken like a true "conservative."
.

[trudem2]

Thank you HuffPost for reviving investigative journalism...... this is what the 4th estate is entrusted to do by the Constitution.

[magibrotherhood]

great work ,HuffPost---always up to the minute and concise on the breaking issues--

[Mark Twaine]

Bank of America announces they are selling some planes as a cost cutting measure. This is a publicity stunt.

They have ten of thousands of branhes in the U.S. and 150 countries which are not profitable. Remember they bought failing CountryWide Financial, Merrill Lynch, U.S. Trust and MBNA the worst purchases in the history of the world.

If they are serious about cutting costs they would close 40-80% of these losing branches.

[Itsmyland2]

They also stopped all executive bonuses, cut bonuses for lower level workers in profitiable areas by 60% from last year. No pay raises for anyone in the company. Cancelled hundreds of internal programs for employees. There are not Tens of thousands of branches losing money. The losses are ALL related to the stinking securities market. Banking centers continue to be profitable in 90% of markets. In fact with economy in the shape it's in customer have been flocking to BofA with their deposits.

The Merrill deal is still new (And was forced on BAC by the FED) and they have not been able to start closures yet. Countrywide can't be downsized until it is integrated with BAC Systems. Do a little research before you start bashing companies.

By the way - BAC has made loans of over 115 Billion in the past 4 months - They are lending too

[mikekopac]

provide a source for the 115 billions in loans

[SFVoter99]

And what happens to the people who work at those banking locations you propose they close? Today we are told that unemployment is at a 26 year high so lets add to it? And by the way, how do you know they are "losing"? What about the communities they serve?

[PSM42]

ER, How about the 18B (B as in Billion) in 'Bonuses."

NB 'Bonus' in this case has been newly defined to mean 'reward for ...'
a) destroying the world's financial system,
b) destroying their shareholder's equity and
c) destroying the power of the US in the world.

These geniuses did all three at once. Bush Cheney Co did help, of course.