Bailout Watchdog Warns Of Lack Of Oversight, Potential For Fraud

New York Times:

WASHINGTON -- The Treasury Department's most ambitious plans to rescue troubled banks -- partnerships between the government and private investors, backed by the Federal Reserve -- are inherently vulnerable to fraud and should not be started without stronger safeguards, a top government investigator warned in a report to be released Tuesday.

The report also warned that the Treasury's $700 billion Troubled Asset Relief Program has evolved into a $3 trillion effort of "unprecedented scope, scale and complexity" and comes with too little oversight and too little information about what companies are doing with the taxpayer money they are getting.

Read the whole story: New York Times

Comments

[care4mypeeps]

Now is the Time to reign in the Attitude that these massive Banking Institutions Have the wisdom to Police themselves, on the contrary they are Incompetent and Arrogant even to insist that we allow them to operate without oversight.

Since we own over half of the Banking Institutions Our right to have Strick Oversight on these Greedy Executives that oversee our Money have to listen to us and keep us in the know.

Nothing less then total transparency will be accepted. This warning from a top Government Investigator will not fall on deaf ears.

[HumeSkeptic]

Commandants Ha-nn-ity and Ch-en-ey don't like what the President is doing.
The tr0llies don't like it either.

Duh!

Why do you think we worked hard to get Obama elected, tr0llies?

So you would be happy?

Bwahahahahahahahaha!

What dolts you are!

.

[Lancer80]

I’m extremely biased for the moment, but after being laid off, because my American company preferred lower cost overseas workers, and just being informed that my American mortgage lender (they already receiving their first bailout) denied my request for a loan modification, I say not a penny more – NEVER!
I do consider myself lucky and fortunate for the moment; I did quickly find employment, at 60% of my formal pay, I’m not upside down on my house, but that could change in year, and I have enough in my savings to make the mortgage payment for probably another year.
Maybe I was too naïve to believe that helping our Banks would trickle down to helping hardworking citizens like me, who just needed a little help (not a handout), to make it through this downturn.

[donaldw6]

If your story's true, part of the bailout money is scheduled to assist mortgage holders like you. I don't know how to point you directly to the assistance, but it's out there. Check the government web sites.

[Carolab]

Well I guess JP Morgan won't be participating in the PPIP.

Well, how about that!

Mission accomplished, Jamie?

Why did the Fed take down Bear Stearns for you? Why DID all of your biggest creditors sue you over Lehman Brothers? What was your collusion with the FDIC and the Fed in the takeover of WaMu? Why was Wells forced to takeover Wachovia? Why was Bank of America forced by the Fed to takeover Merrill Lynch?

JP Morgan has solid Tier 1 capital, and reported $5B in "derivatives profits". They had $90 Trillion in "derivatives debt" when this started -- three times more than any other financial institution worldwide.

As of March 31, 2009, JPM had a Tier 1 Capital ratio of 11.3%, or 9.2% excluding TARP capital. Tangible common equity to risk-weighted assets ratio was also strong at 7.2%. During the conference call, Mr. Dimon said that the company would like to pay back the TARP funds as soon as it receives guidance from the Government and further, in view of its strong capital position, it does not need to raise capital to repay TARP money.

Mr. Dimon also said that the company does not intend to participate in PPIP (Public-Private Investment Program), though he thinks that if PPIP is properly executed, it could be good for the system. He also clarified that the company’s results did not benefit from accounting rule changes. See: JP Morgan Beats Estimates

http://www.zacks.com/stock/news/19198/

[HumeSkeptic]

It's funny that some tr0llies think that they are relevant.

Bwahahahahahahaha!
.

[dumbosrus]

Look whose talking: Captain Irrelevant.

HumeSkeptic motto: But, But, But Bush......whimper, whimper, sniffle, sniffle.

get some new material chump...........

[HumeSkeptic]

I love it.
It is a joy to see you writhing in agony, tr0ll.
Now I just sit back and enjoy the show as you go swallow whatever Limbaugh feeds you from his rear end, then come back here and spout it all over the place.
That's your only job now.

[dumbosrus]

This 'headline' can be summed up in a 5 word slogan that millions bought into;

Change You Can Believe In...........

Dumbacrats = Republicrats, even in 2009.

[HumeSkeptic]

The fact that you are agitated tells me that all that is happening is causing you pain. That to me is pure joy.
.

[dumbosrus]

The fact that I'm the only one agitated at this latest bungled dumbacratic effort should be cause for alarm for every American.

But, sheeple are sheeple............

[HumeSkeptic]

Good to see that the Special Inspector General is doing his job. Hopefully, this would result in better oversight and corrective action.

This is the way our government is supposed to work.
.

[dumbosrus]

No it is NOT.

The way your gov't is supposed to work is the voting populace votes intelligent people into Congress that know how to read and write legislation that PREVENTS this from even possibly occurring.

Last I looked, the Dumbacrats were in remedial education............and they are thumping their chest at one failure after another.

[HumeSkeptic]

Ha Ha Ha.
I can see that you are still hurting from the k!ck you received on November 4.

Perfect.
Guess what! That pain you have is just going to grow over the next 8 years. :-)
Suffer, tr0llie, suffer, for your kind helped destruction of our country for much too long.

[HumeSkeptic]

None of my comments made it on the Da-rth Va-der thread.
On the positive side, I didn't get banned.
.

[donaldw6]

I just can't understand why they'd do that. He says whatever he wants, after all.

[HumeSkeptic]

Yeah. All I said is that I was particularly encouraged by the way he seemed to be breathing in that video.
.

[markflour]

FORTUNATELY we get this info in time to stop the madness.

This is exactly what we need!

With enough publicity we can get the Whitehouse to the plug potential holes.

I'm going over to Whitehouse.gov to contact them about this report!

[dumbosrus]

You're already too late.

Remember when Pelosi and her cabal were saying how this was going to executed in a RESPONSIBLE manner?

Those were the days................

This Congress is a COMPLETE disaster, and must be replaced, without exception.

[HumeSkeptic]

It is being conducted in a responsible manner. Hence the appointment of special inspector general and hence this report.

Your Fuhrer Bush and his Commandant Paulson simply ignored all oversight rules.

[donaldw6]

You're in your own little separate reality, aren't you? That's not good for you, you know.

[boatsfra]

Sounds like the "great train robbery" movie no? Or, were the fraudees lined up on Pennsylvania ave with their hands out like a lunch line at a homeless shelter, awaiting a pile of dough? I imagine the money had to go somewhere right? Is this a case of taking matters into your own hands?

[Carolab]

POTENTIAL for fraud?

POTENTIAL?

[donaldw6]

Ya think?

[aristippe]

Iraq part deux

[dumbosrus]

Lack of oversight and fraud in the same sentence. Hallmark traits of Nancy Pelosi.

While this is hardly anything new, it does re-iterate what others were saying in December and January.

Helluva job Congress, helluva job...........

[stella801]

Where were these sentiments the last 8 years while Bush was running the country? Lack of oversight and fraud in the same sentence would be coherent in that situation. You should examine the last 8 years and apply your criticisms on the same issues.

[dumbosrus]

I do.

However, the DUMBACRATS have been driving the Congressional bus since January 2007. And their free passes are up.

Park your partisanship. It's not working......

[donaldw6]

They don't listen, and they don't learn, but that's a big reason why they don't matter much any more.