TARP Watchdog: "We Do Not Seem To Be A Priority For The Treasury Department"

Elizabeth Warren, in charge of oversight of the financial industry bailout, told a congressional panel Tuesday that the Treasury Department has not been cooperating with her efforts to oversee the project.

"We do not seem to be a priority for the Treasury Department," said Warren.

She added that the administration's failure to ask for more accountability has led to a situation that is difficult to oversee. "This problem starts with Treasury," she said.

Warren is testifying before the Senate Finance Committee. We'll update with video when it's available.

Warren argued that "continuous subsidization without vigorous oversight is exactly what got us into this." She complimented the administration's oversight of the auto industry, but contrasted it with the lack of the same with regard to the banks.

Warren said Congress may need to enact new legislation to give itself more access to the bailout program.

Filmmaker Michael Moore was spotted sitting a few rows behind Warren, listening intently as she spoke.

Comments

[Austintatious]

If you're familiar with Ms. Warren's work, you'll know that she is a very intelligent, talented and capable individual, and very supportive of middle and lower economic class Americans. If she is sounding the alarm regarding the President's handling of the TARP funds or any other aspects of the Administration's economic and financial policies, it is time for us to pay attention.

Her comments lend to the building body of criticism regarding the President's handling of the Wall Street malfeasance. More and more, it appears that the fat cats will continue to get away with financial murder, getting richer as well, while average Americans are getting the shaft.

Watch for more from Ms. Warren. If there is anyone likely to look after us just plain folks, it's Elizabeth Warren. I predict that she will resign rather than be associated with a plan she concludes is incompetent or not in the best interests of the American people.

[FrozenNorthObserver]

that explains why Obama and Geithner are keeping her in lead lined room.

[LynnW49]

Can somebody name some things that Geithner has dine that have been EFFECTIVE, regulatory, useful, successful? Seriously. What useful and productive and game changing things has this man done?

[benwha]

If you want to know something he has done effective, call Goldman Sachs. They were quite happy to get the money he funnelled them through AIG.

[sandals]

Keep pounding on the President his Approval is 66%, so keep pounding you useless Rethugs, why don't you all go crawl under a rock.

[alexis d]

No, no, this isn't useless Rethuggery. Please look at the facts. This is highly legitimate criticism. As someone who worked hard to get Obama elected, and who has mostly been quite pleased with him, his allowing the financial industry to get away with murder has been totally unacceptable, to the point that it endangers my vote for him in 2012.

[jneuman771]

Geee does this mean we don't have transparency?

You mean no accountability?

You mean we are going to be "plucked" again, have our pockets picked?

Does anyone have to behave to abide by the law?

[Gibbseegibbsee]

Kathleen Sebelius, President Obama's nominee to become Health and Human Services secretary, said in a letter obtained by the Associated Press that she made "unintentional errors" on her taxes and has corrected her returns from three different years.

Yet another appointee with tax problems. Hope and Change at it's best.

[Promisin1]

Hold the phone everyone!
Warren is asking for something from treasury that they don't have and that's regulatory authority. If you recall, approximately a month ago the president began asking for more authority over financial institutions like Citi, AIG and banks receiving bailout funds. Bernie Frank, is currently drafting legislation to give the administration more authority over banks and financial institutions. Here is an exerpt from an article from NBC Chicago (link is below) that explains what authority the Federal Reserve has, the FDIC has and the Treasury department. Excerpt number 1: "Right now the FDIC has limited authority over banks. Under current law, the FDIC has so-called “bridge bank authority” to take over a troubled institution with government insured deposits. The FDIC essentially keeps the bank open for a short period of time before a pre-arranged buyer—meaning another bank—assumes control and operation. In some cases, the government actually closes the bank and pays off depositors. The FDIC, however, does not control bank holding companies. That is the responsibility of the Fed, but the central bank is only legally allowed to make the company take so-called prompt corrective action to deal with such things as capital requiremen­ts..."
The government has more regulatory authority over auto manufacturers and can hold them accountable for how they use TARP funds. I don't like that they can't legally do the same with banks.

http://www.nbcchicago.com/news/business/US_Is_Rushing_to_Get_More_Control_Of_Financial_Giants.html

[strangerinthenight]

SCROLLING DOWN - JUST LIES.

[waltn]

What does the legal status change from "bank" to "bank holding company" mean in this context? The "bank" no longer exists. We now have "bank holding companies". I don't know what legal difference this makes but I thought about it in relation to the AIG bonus fiasco. The employees were no longer working for a "bank" (well, not that AIG was a "bank"), but didn't it, too, change to a "bank holding company"?

[jsinclair]

This is a very, very VERY bad sign.

What gives, Mr. President?

I hope Michael Moore's presence is not a coincidence. His filmmaking skills on the subject of TARP are MUCH needed....­..

[getreal145]

Let the banks fail. Fire Geithner, fire the boards and top management of every failed bank that the government has to oversee the rescue of AFTER they are allowed to fail and go bankrupt, as capitalism ought to allow them to do. Then reserve taxpayer billions for banks that acted responsibly, and provide them loan funds that they oversee and must lend to business and homeowners. It doesn't get simpler than this. WHAT IS THERE ABOUT THIS THAT OBAMA WILL NOT UNDERSTAND AND WHY?? ANYONE?

[MyTake]

You are correct. But it goes this way, a "private" group of "private" men control all international finance (transnational banks) and for the past 4-5 decades those private men have seized control over government treasuries using their control of the central banks of England and the U.S.. (Remember McCain going to London for a fundraiser hosted by the Rothschild's).

Prof. Carrol Quigley's 1967 book, Tragedy & Hope, pp 950-970 refers. Quigley was a long time member of the Rockefeller controlled Council on Foreign Relations and was allowed to examine its innermost records prior to writing the book. Obama appointed 300 of his administration that were taken directly from the CFR membership roster.

Here is Dick Cheney talking to Rockefeller at CFR: http://www.youtube.com/watch?v=BbnpN07J_zg&feature=related .

Here is the partial attendee list of the "powerful men" on the 135 member Bilderberg Group (interlocked with CFR) held in Virginia last June: http://illegalprotest.com/2008/06/08/list-of-bilderberg-2008-attendees-globalists-exposed/ . Note the U.S. names of Paulson, Gueithner, Bernanke, Summers, Daschle, Kissinger, Rice, corporate media heads and David Rockefeller.

There you have it, complete control of your government's finances, weakening all G20 governments and going for a singular global government with one currency.

[verycold]

I have listened to Elizabeth several times and find her very sincere if almost like a hard working reporter back in the old days. It seems to me she is the ONLY one working for taxpayers, which she seems to be including herself.

So the real question is why is Obama so enamored with Geithner? I find Tim to be arrogant if not nasty with that very weasel appearance. When he is asked questions, he wants to hastily dismiss. I also think the Budget secretary to be equally arrogant.

During the Bush years, I got the impression they didn't want to share information with the people and thus the reason the president was rarely out in public. That sort of demeanor makes people suspicious of what is really going on. Now we talk a lot about transparency, but I still feel nobody wants our input. Obama says the same things over and over. The press conferences are all orchestrated, meaning the questions are determined before the cameras roll. Those speaking for Obama are frequently arrogant and short on substance. One week they are positive, the next negative.

The idea of our president visiting another country with over 500 employees tagging along, makes me feel like the US is an elitist country. We are in the middle of what may prove to be another depression and we still feel the need to spend money like it was water and on top of that be proud to do so.

[instagladiator]

Surprise surprise!!

[AngryCitizen]

Treasury wasn't big on collecting debt owed to the government in the 90's either, don't know what's up with them.

[VoteLibertarian]

What happened to democrats being completely against corporate welfare? The first 3 months of this presidency has been nothing but Leftists giving away hard working American tax dollars to every failed bank, conglomerate and CEO they can ring in. This is the change you were looking for? Did you really expect your tax dollars were gonna pay the repair bills for your Uncle Jerry's Buick?

[hoppybunny]

Maybe it was people who VoteLibertarian who forced the Dems right in order to get elected?

[SecretSister]

I guess former President Bush would qualify as one of your extreme "Leftists?"

[strangerinthenight]

Wake up Morticia. it's the 21st Century.

[VoteLibertarian]

Yeah Bush was a leftist fiscally..­.I didnt think anyone could spend money the way Bush did...I guess I was wrong.

[JaneK13]

Bush opened the door to nationalizing banks and Obama went right on through. Not only did P:res Obama finish the job of nationalizing the banks, but he's nationalized AIG and GM, too....and he says there is more to come.

Next step: Treasury Secy Geithner wants to be able to take over any company, anywhere if the government thinks that company presents a systemic risk.

Although Bush started the bailout of banks by nationalizing them, Obama now owns the problem, because he has tripled the amount being spent on bailouts and is extending nationalizing to other businesses.

I don't know whether the way Pres Obama is handling the economy is right or wrong. Time will tell. But I do know it's time for Obama to stop blaming Bush. We hired Barack Obama for the job -- and now that he's settled in -- it is appropriate for him to take credit (or blame) for his leadership. As Pres Truman said, "The buck stops here."

[jsinclair]

Please look up the meaning of "nationalizing".

It isn't what you think it is.

[000Jade000]

It speaks volumes that the following:

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/26/AR2009032601330_pf.html

is one of the news articles that the Congressional Oversight Panel has featured on it's homepage.

[patstory]

Elizabeth Warren (of Harvard) is as intelligent, dedicated, honest, and tough as any public servant in the Obama administration or in America. I can only imagine the stonewalling it must have required to cause her to plead to Congress for help. Many people think Geithner is a Wall Street stooge; until now I have kept an open mind but I'm very worried based on her testimony.
Elizabeth Warren: please keep up the fight for honesty and integrity in the Obama administration. More people are behind your work than you may know.
BTW, about Afghanistan as mentioned above: Obama's decision to own and escalate an inherited war in Afghanistan and Pakistan will turn out to be more destructive to our future than anything in his domestic policy. I hope Obama will recall Osama bin Laden's master plan of bleeding us into bankruptcy and powerlessness. Bush and the neocons fell for it and for years bin Laden has been watching with satisfaction. Obama's supporters (like VP Biden who reportedly warned him against this "quagmire") must keep Obama from going down this road to failure once taken by Lyndon Johnson.

[000Jade000]

She has been complaining about this openly for weeks now.

Her complaints have even been documented in reports

like this one: http://cop.senate.gov/documents/cop-010909-report.pdf

that can be found on the Congressional Oversight Panel Website:

http://cop.senate.gov/

[crazyv]

when will you be convinced that he is a stooge.

[instagladiator]

When he/she wakes up one morning and finds that the Bill of Rights has been determined to be null & void by the NWO.

[instagladiator]

I don't think he/she can connect the dots?