Remember when Doris Kearns Goodwin and the rest of the elite media socialites took to the studios of Charlie Rose's show to portray the opponents of the bailout as wild-eyed leftists? Seems there's some serious bipartisan pushback going on (h/t Atrios):
WASHINGTON -- U.S. Sen. Jim Inhofe said Saturday that Congress was not told the truth about the bailout of the nation's financial system and should take back what is left of the $700 billion "blank check'' it gave the Bush administration."It is just outrageous that the American people don't know that Congress doesn't know how much money he (Treasury Secretary Henry Paulson) has given away to anyone,'' the Oklahoma Republican told the Tulsa World.
"It could be to his friends. It could be to anybody else. We don't know. There is no way of knowing.''
Inhofe, who on issues like global warming is something of a know-nothing, is nonetheless absolutely correct on this one. Bailoutsleuth.com has been reporting how Paulson has tried to shroud bailout expenditures in secrecy, while Bloomberg News recently reported that Federal Reserve Chairman Ben Bernanke is refusing to release the names of the recipients of about $2 trillion in taxpayer-funded loans.
Inhofe will likely find an ally in Sen. Bernie Sanders (I-VT), who issued this press release this morning:
WASHINGTON, November 17 - Senator Bernie Sanders (I-Vt.) said today he will introduce legislation to stop the release of a $350-billion second round of the Wall Street bailout.Sanders, who voted against the $700-billion package Congress approved in October, said he has serious concerns about how the Bush administration and Treasury Secretary Henry Paulson are spending the bailout money that was already released. He also said it was unacceptable that the oversight provisions in the bill were ignored.
When the bailout originally passed over bipartisan objections, many voices began demanding Paulson refrain from buying bad mortgages, and instead buy voting stock in banks on terms that force banks to make loans off the new capital, restrict bank salaries/dividends and protect taxpayers' investment. Paulson partially buckled to that pressure, first a few weeks ago, then again late last week. Indeed, he discarded his original proposal (which would have been a straight-up giveaway) and began buying stakes in banks. The problem is he opted to buy non-voting stock on bad terms that do not protect taxpayers and allow bank executives to continue paying bonuses.
Now, with bipartisan congressional anger mounting, we may see a forceful legislative campaign to take back what remaining money Paulson wants to give away to his friends on Wall Street. The guy is working overtime to shovel out as much taxpayer money - our money - to his buddies before January 20th comes and he's out of a job. It's time to stop the kleptocracy, take back the money and spend it on a major economic stimulus to bolster the real economy here in "real America" where real people work real jobs - not simply give it away to a few financial industry fat cats in Manhattan.
UPDATE: Check this out from the Financial Times:
A senior Republican senator is seeking an investigation into potential conflicts of interest among former Goldman Sachs executives serving at the US Treasury and whether any officials exceeded their authority by implementing a controversial tax change without the approval of Congress.
Chuck Grassley, the most senior Republican on the Senate finance committee, asked Eric Thorson, inspector-general of the Treasury, to investigate the "independence" of several Treasury officials who formerly worked at Goldman Sachs and serve as advisers to Treasury secretary Hank Paulson, the former chief executive of the Wall Street bank.
The lawful duty to regulate the banking industry therefore is vested in the Congress, who may not abdicate that responsibility to the Executive Branch.
The lawful duty of the Judiciary also cannot be "bound and gagged" by the Legislative Branch, nor by the Executive.
Congress was all-too-happy to ignore this, just a few weeks ago, and it is only because of continuing public pressure that they pretend now to "see the light."
This public pressure must be mounted. It must be raised, even at this eleventh-hour, until the word "IMPEACH!" is pushed back ONTO the table, from whence it Constitutionally never could be removed in the first place.
This is High Crime, ladies and gentlemen. THIS is what "high crime" is... "300+ million Plaintiffs." You're one of those Plaintiffs, and so am I. Guess what... I don't like being a Plaintiff and being told (by another High Criminal) that there is nothing that I can do to stop the man who is robbing me of everything I own.
People who continue to blame Bush, but ignore the Democrat's complicity are simply showing political bigotry..
Michale....
Maybe I do not understand all of the logistics taking place, but what I do understand is that the Treasury Dept.'s secrecy and evasiveness in conjunction with the lack of oversight parallels the Defense Department's no bid contracts awarded to contractors to rebuild Iraq lack oversight, too. The costs to the taxpayers are astronomical and still growing. Therein it is essential for the public to demand oversight, restrictions, and investigations. Silence is not an option.
While this comes as no surprise since Bush and his administration have never once been totally forthcoming, our representatives are equally responsible having adjudicated their role of oversight. Granted most democrats made attempts, but failed. Worse the republicans just basically turned a blind eye and/or obstructed investigations. So it is encouraging one or two republicans are speaking out against Paulson's moves and calling for investigations. But one or two are not enough.
Government officials cannot ignore millions of voters demanding oversight and investigations. Time is of the essence. Otherwise our silence becomes the equivalent to consent.
Michale.....
Clearly the markets VOTED a resounding No to his deeds so far, so Not another CENT to Paulson!
The new Treasury Secretary will have the power, integrity, and intelligence to use the remainder to rebuild our economy and confidence in the markets.
Instead of whining about what went wrong, stop the program now and insist Paulson and his legion of doom turn over the keys to the corporate restrooms to Obama appointed personnel before it's all gone. Pelosi and Frank and Dodd need to step up now or share full blame for the legendary rape that is going on in the name of bailout.
If anybody wants our treasury they should apply to Congress as if they were seeking a grant,
a guardian angel. The last thing Congress should do is give it to Bushies.
Why doesn't Congress stop usury credit card charges. I pay 29% and 25% respectively.
Why is going to give me relief? Why can't Congress cap rates at 18%?
Isn't 18% good enough? punitive enough? I guess not. This says something about our
"leaders" in Congress. They are in bed with the banks.
If they took the .7 trillion in dollar bills, dumped it all on the mall , lit it on fire and had a weenie roast, it woul still be an excellent deal for the taxpayer.
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It is an excellent deal because what we are really purchasing is the public repudiation of 30 years of Republican Orthodoxy.
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It will now be much easier to justify Trade Policy, Industrial Policy, Medical Policy, Cultural Policy et al. The taxpayer will be repaid a hundred times over.
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Plus we get some weenies and toasted marshmallows.
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I thought that was obvious all along.
Isnt Goldman flush with cash from the bailout?
Why/how could they consider going private if they received 10billion in bailout money?
No Senator Inhofe,... it is not outrageous that Congress doesn't know this,... It's outrageous that Congress passsed the legislation without knowing pretty much where the money was going, approximately how much was going where (give or take a few million), and that you IDIOTS passsed the legislation to begin with.
The rest of the crap that goes with this bill was forseen by just about any thinking person outside of Washington DC. It follows logically that if you give an unscrupulous person (Secretary Paulson) a blank check, and no oversight, and no regulation as to what he can/cannot do with the money, he will make sure his friends get first crack at the loot.
The problem isn't really Paulson or the Bush administration in this particular case - they are just holding true to demonstrated form.
They problem is you PINHEADS and CROOKS in the Senate and House gave them the means to do it.
paulson is incompetent. that doesn't mean letting the banking system collapse was going to be a good alternative.
In the meantime, money intended by legislative intent to be used by banks for loans, if not used for that purpose belongs to the government. In other words, Frank is right. It is a violation of the act. Paulson et al, may think they are getting away with this, but it will all eventually be explained to them once they are in jail, and their attention to the law is focused for them.
Those two probably understand the economy better than anyone.