Where Is The Bailout Money Really Going?

CBS Evening News: Now That Money's Being Distributed, Bailout Meant To Be Transparent Cloaked Under Veil Of Secrecy

(CBS)  It's all right there in black and white in the text of the bailout bill passed last month, yet the public may feel like victims of a bait and switch.

The original idea: Spend $700 billion in tax dollars to buy troubled mortgage-related assets from struggling banks.

But the actual bailout calls for nothing of the sort. Instead, your tax dollars are buying massive shares in some of the nation's biggest and most successful banks - with virtually no strings attached. And that's all allowed under Congress' plan, CBS News investigative correspondent Sharyl Attkisson reports.

And to listen to government officials, you'd have thought all those billions were among the most carefully-tracked pool of tax dollars ever.

"We put in place tremendous regulatory oversight so that there will be absolute transparency," said Sen. Judd Gregg, R-N.H., on Oct. 1.

Yet ask the most basic question - how exactly are the banks using your money - and the answer can't be found. Consider the following:

The Treasury Department agreed to post every transaction on the Internet, but all it shows is the list of banks and how many billions they got.

The brand new Financial Stability Oversight Board has met four times already but they don't know how the banks are using the money.

There's no hint in the first official Treasury report to submitted to Congress last week.

And Congress promised to create its own special oversight board, but more than five weeks later not one person has been named to the panel.

So, CBS News decided to ask the banks what they're doing with the money. We talked to the nine biggest recipients, who pointed out there's nothing in the bailout law that requires them to disclose specifics.

CBS News does know from public information that at least four of the banks are using bailout funds to merge with or take over other banks.

Bank officials told Attkisson that taxpayers will have to trust that the money will be used wisely.

Congress does have the power to hold back the second half of the $700 billion if it thinks the first half isn't working out.

But as one bank official put it: If anyone thought for a minute that every penny was somehow going to be tracked, they're going to be sorely disappointed.

© MMVIII, CBS Interactive Inc. All Rights Reserved.

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by bugt68 October 31, 2009 10:30 PM EDT

Americans are out of jobs.but most of mexicans are still working.and the indians are still buying up our stores with their free money for coming to america.those are another big reason why we are in such bad shape.i want a promise from their goverment if we move there they will buy me a 7-11 or business tax free.what makes me mad is i started working part time at age 15 with a shovel in my hand not a cash register.I can't see the goverment helping it's own people.no stimulus money for us.the small town i live in received goverment money.now they wasting it making sidewalks out of bricks.WOW that helps our economy.obama says the economy is getting better.maybe for the goverment.I'am sure they have'nt had to take a pay cut.or worry about were their next meal is coming from.maybe we could make money writing books about how our goverment is letting it's people down.In the end i think the goverment wants to own everything.then we can rent our houses from them.there is alot of concern about the economy but first i think we need to take our country back before it's ran by the indians & mexicans.i'am sure if the goverment could get enought they would sell out. thanks for reading bugt.

Reply to this comment

by annusa April 17, 2009 12:35 PM EDT

I am recently got layoff from my job. I applied for home loan modification program. The loan modification reps told me to call back after I got some source of income from unemployment office. I called them back after I received my unemployment income and they told me that I am not qualified because I am receiving unemployment. They also told me loan mod program is for people who was irresponsible enough to get into mountain of debt and ARMS mortgage only. It sound like the bailout is for crooks only where they play this switch and bait game and only help out other crooks. The bailout does NOT intend to help out people like me the forgotten tax payer who play by the rules. The loan mod reps also suggested that I cut back on my food, and utilities. I had already cut back my grocery from 200 dollars average to 120 dollars a month and probably I should not take a bath and live in the dark ages with no electricity. I can't believe how HEARTLESS are these BANKERS! This made me think that I am the FORGOTTEN TAX PAYER AND DON'T HAVE THE SAME RIGHTS AS THE CROOKS.

I would like to see the government put more control on these crooks how they should spend our tax money. I think this is the BIG BANKS' conspiracy to ROB the American people of their dream to own a home by forcing small people like me to go into foreclosure. I would like to see the government STOP giving our hard earn money to these BANKERS ROBBERS. Why don't the government has its own program directly helping all the people struggling. Instead of layoff people who work for the government keep these people in the new program that government create help out struggling American workers until they find a job. I think that would be a win win situation for both government workers and private workers.
WHY DON'T THE GOVERNMENT DOES MORE IN PREVENTING FORECLOSURES AND PREVENTIVE HEALTH CARES THAN SPEND TONS OF TAX PAYERS MONEY TO TAKE CARE OF THESE ISSUES AFTER IT HAPPENED?

Reply to this comment

by aldee41 November 14, 2008 11:18 AM EST

The "bailout" is a last (I hope!) run on the treasury to recharge the bank accounts of Republican political donors. The Obama Indictments would make a great book title six or eight years from now.

Reply to this comment

by tincup356 November 13, 2008 8:59 PM EST

America is under attack from white collar , suit and tie terrorists.Thanks to the fools who would not listen to warnings that those people needed to be removed from office before the election, but faithful party line voters sent them right back to finish the job they had already started, the "SELLOUT".The only wasted votes this last election put both democratic and republican criminals back at the controls to give away our future and not even think about what they said they were going to do to get re-elected.I figure about February when many more people lose everything, the middle and lower classes will be about broke and homeless.It will be interesting to see what happens when you have 20 million people marching on Washington looking for revenge.

Reply to this comment

by glenn_lewis November 13, 2008 8:37 PM EST

"Congress does have the power to hold back the second half of the $700 billion if it thinks the first half isn''t working out." BINGO!

Reply to this comment

by misha128-2009 November 13, 2008 7:52 PM EST

Obama To Resign From Senate
...

Posted by TheMasses10 at 03:42 PM

Actually a very smart move -- his successor will have seniority over any of the new freshmen senators because they will be sworn in before the other freshmen, if appointed in time.

Reply to this comment

by vrnnjoseph November 13, 2008 7:35 PM EST

These right wing morons do not even understand how we got in this situation. It was the first 6 years of the no-oversite Rebuplican Congress!

Reply to this comment

by vrnnjoseph November 13, 2008 7:33 PM EST

I really like my president to be very smart. If I wanted to have a moose burger with someone I pick Palin. Hopefully, America will not let another moron into office!!!

Reply to this comment

by vrnnjoseph November 13, 2008 7:30 PM EST

Duh!!!

Reply to this comment

by cricketbeers November 13, 2008 4:29 PM EST

CALL YOUR CONGRESSMAN NOW! Email them, call them, stand outside their local office with picket signs. If we all band together, we''''ll draw more attention to this fiasco...
----------------------------
Berniepeders: While I hate to think you''re correct (and I''m sure you are) when you say our Reps don''t give a R-A-T-S A-S-S unless it comes in the form of money, I think that if enough of us rally up against this BS bailout, they''d have to take notice.

Emails, phone calls, picket lines? Or perhaps now, candlelight vigils while we mourn the loss of our hard earned money. *sigh*

Reply to this comment

by rohink-2009 November 13, 2008 4:04 PM EST

The government are the people who made the regulations and laws so these people could make the money they "earned". It is these people''''s duty to pay their taxes to that government so that others can enjoy the same opportunities and prosperity these people had.

Posted by lochlan

How do taxpayer dollars give opportunities and prosperity to people? I never relied on any government assistance. Every State that relies heavily on entitlements is going bankrupt. California, Illinois, New York, Michigan.

Reply to this comment

by berniepeders November 13, 2008 2:44 PM EST

That''s because America is a lie. At no time in our history has it been any more apparent. Posted by lochlan

lochlan: I can''t argue with you there.
Peace

Reply to this comment

by lochlan-2009 November 13, 2008 2:32 PM EST

"We, the people" don''''t even have the ability to directly elect the president that the majority of the country wants. The president is elected by the party faithfuls who are members of that d-a-m-n-e-d electoral college. The general population has no control over what goes on in Washington, admit it, and get over it.
Peace
Posted by berniepeders

That''s because America is a lie. At no time in our history has it been any more apparent.

Reply to this comment

by lochlan-2009 November 13, 2008 2:31 PM EST

deserve to have control of it, NOT the government.

Posted by FromTexwLove

The government are the people who made the regulations and laws so these people could make the money they "earned". It is these people''s duty to pay their taxes to that government so that others can enjoy the same opportunities and prosperity these people had.

Reply to this comment

by berniepeders November 13, 2008 2:22 PM EST

arguing here is useless... write your reps...
Posted by ddaryl1

ddaryl1: I''m sorry to burst your bubble, but you''re kidding yourself if you really think those people in Washington give a rats a-s-s what you write or e-mail to them. The only thing that means anything to them is money (campaign contributions) and political connections to get themselves re-elected, so they can keep making more money and connections. Sorry.
Peace

Reply to this comment

by berniepeders November 13, 2008 2:14 PM EST

"We, the people" don''t even have the ability to directly elect the president that the majority of the country wants. The president is elected by the party faithfuls who are members of that d-a-m-n-e-d electoral college. The general population has no control over what goes on in Washington, admit it, and get over it.
Peace

Reply to this comment

by berniepeders November 13, 2008 2:05 PM EST

WHEN WILL PEOPLE WAKE UP AND REALIZE THE GOVT IS RAPING US??!! And we stand by and do ABSOLUTELY NOTHING about it but b i t c h and whine! Posted by cricketbeers

cricketbeers: What exactly do you propose that "we" do?
Peace

Reply to this comment

by whatithink10 November 13, 2008 1:36 PM EST

FromTexwLove,

Then Reagan was a Communist.

Why don''t you guys have any problems with the redistribution of wealth from the middle class/poor to the rich?

Reply to this comment

by lochlan-2009 November 13, 2008 1:20 PM EST

By Mark Pittman, Bob Ivry and Alison Fitzgerald

Nov. 10 (Bloomberg) -- The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.

Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn''t require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return."

STEAL, LIE, STEAL, LIE. That''s the Bush Regime. Of course, why can I walk down the street and ask people if they know what Clinton did in the oval office, and get the right answer, but when I ask, after two president Bush''s, if these same people know about Bush''s family history with the bank oil companies, NONE of them know that Prescott Bush''s bank, UBC, was siezed by the US government under the "Trading with the Enemy Act" because of their using the bank to fund the Nazi''s in the 30''s and 40''s. What''s going on with the banks and financial markets right now, after record profits with the oil companies? Didn''t this same scam happen during the Reagan Bush years and the S&L scandal?

America is such a lie.

Reply to this comment

by flsunjnky November 13, 2008 1:17 PM EST

Yea, good job Bush for allowing all of this to happen. Good job Bush for your socialistic ideas on the buying of big banks. Good job Bush for swindling taxpayers. Good job Bush for nearly bankrupting this entire country! It%u2019s time for them to go!

Reply to this comment

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[bugt68]

Americans are out of jobs.but most of mexicans are still working.and the indians are still buying up our stores with their free money for coming to america.those are another big reason why we are in such bad shape.i want a promise from their goverment if we move there they will buy me a 7-11 or business tax free.what makes me mad is i started working part time at age 15 with a shovel in my hand not a cash register.I can't see the goverment helping it's own people.no stimulus money for us.the small town i live in received goverment money.now they wasting it making sidewalks out of bricks.WOW that helps our economy.obama says the economy is getting better.maybe for the goverment.I'am sure they have'nt had to take a pay cut.or worry about were their next meal is coming from.maybe we could make money writing books about how our goverment is letting it's people down.In the end i think the goverment wants to own everything.then we can rent our houses from them.there is alot of concern about the economy but first i think we need to take our country back before it's ran by the indians & mexicans.i'am sure if the goverment could get enought they would sell out. thanks for reading bugt.

[annusa]

I am recently got layoff from my job. I applied for home loan modification program. The loan modification reps told me to call back after I got some source of income from unemployment office. I called them back after I received my unemployment income and they told me that I am not qualified because I am receiving unemployment. They also told me loan mod program is for people who was irresponsible enough to get into mountain of debt and ARMS mortgage only. It sound like the bailout is for crooks only where they play this switch and bait game and only help out other crooks. The bailout does NOT intend to help out people like me the forgotten tax payer who play by the rules. The loan mod reps also suggested that I cut back on my food, and utilities. I had already cut back my grocery from 200 dollars average to 120 dollars a month and probably I should not take a bath and live in the dark ages with no electricity. I can't believe how HEARTLESS are these BANKERS! This made me think that I am the FORGOTTEN TAX PAYER AND DON'T HAVE THE SAME RIGHTS AS THE CROOKS.

I would like to see the government put more control on these crooks how they should spend our tax money. I think this is the BIG BANKS' conspiracy to ROB the American people of their dream to own a home by forcing small people like me to go into foreclosure. I would like to see the government STOP giving our hard earn money to these BANKERS ROBBERS. Why don't the government has its own program directly helping all the people struggling. Instead of layoff people who work for the government keep these people in the new program that government create help out struggling American workers until they find a job. I think that would be a win win situation for both government workers and private workers.
WHY DON'T THE GOVERNMENT DOES MORE IN PREVENTING FORECLOSURES AND PREVENTIVE HEALTH CARES THAN SPEND TONS OF TAX PAYERS MONEY TO TAKE CARE OF THESE ISSUES AFTER IT HAPPENED?

[aldee41]

The "bailout" is a last (I hope!) run on the treasury to recharge the bank accounts of Republican political donors. The Obama Indictments would make a great book title six or eight years from now.

[tincup356]

America is under attack from white collar , suit and tie terrorists.Thanks to the fools who would not listen to warnings that those people needed to be removed from office before the election, but faithful party line voters sent them right back to finish the job they had already started, the "SELLOUT".The only wasted votes this last election put both democratic and republican criminals back at the controls to give away our future and not even think about what they said they were going to do to get re-elected.I figure about February when many more people lose everything, the middle and lower classes will be about broke and homeless.It will be interesting to see what happens when you have 20 million people marching on Washington looking for revenge.

[glenn_lewis]

"Congress does have the power to hold back the second half of the $700 billion if it thinks the first half isn''t working out." BINGO!

[misha128-2009]

Obama To Resign From Senate
...

Posted by TheMasses10 at 03:42 PM

Actually a very smart move -- his successor will have seniority over any of the new freshmen senators because they will be sworn in before the other freshmen, if appointed in time.

[vrnnjoseph]

These right wing morons do not even understand how we got in this situation. It was the first 6 years of the no-oversite Rebuplican Congress!

[vrnnjoseph]

I really like my president to be very smart. If I wanted to have a moose burger with someone I pick Palin. Hopefully, America will not let another moron into office!!!

[vrnnjoseph]

Duh!!!

[cricketbeers]

CALL YOUR CONGRESSMAN NOW! Email them, call them, stand outside their local office with picket signs. If we all band together, we''''ll draw more attention to this fiasco...
----------------------------
Berniepeders: While I hate to think you''re correct (and I''m sure you are) when you say our Reps don''t give a R-A-T-S A-S-S unless it comes in the form of money, I think that if enough of us rally up against this BS bailout, they''d have to take notice.

Emails, phone calls, picket lines? Or perhaps now, candlelight vigils while we mourn the loss of our hard earned money. *sigh*

[rohink-2009]

The government are the people who made the regulations and laws so these people could make the money they "earned". It is these people''''s duty to pay their taxes to that government so that others can enjoy the same opportunities and prosperity these people had.

Posted by lochlan

How do taxpayer dollars give opportunities and prosperity to people? I never relied on any government assistance. Every State that relies heavily on entitlements is going bankrupt. California, Illinois, New York, Michigan.

[berniepeders]

That''s because America is a lie. At no time in our history has it been any more apparent. Posted by lochlan

lochlan: I can''t argue with you there.
Peace

[lochlan-2009]

"We, the people" don''''t even have the ability to directly elect the president that the majority of the country wants. The president is elected by the party faithfuls who are members of that d-a-m-n-e-d electoral college. The general population has no control over what goes on in Washington, admit it, and get over it.
Peace
Posted by berniepeders

That''s because America is a lie. At no time in our history has it been any more apparent.

[lochlan-2009]

deserve to have control of it, NOT the government.

Posted by FromTexwLove

The government are the people who made the regulations and laws so these people could make the money they "earned". It is these people''s duty to pay their taxes to that government so that others can enjoy the same opportunities and prosperity these people had.

[berniepeders]

arguing here is useless... write your reps...
Posted by ddaryl1

ddaryl1: I''m sorry to burst your bubble, but you''re kidding yourself if you really think those people in Washington give a rats a-s-s what you write or e-mail to them. The only thing that means anything to them is money (campaign contributions) and political connections to get themselves re-elected, so they can keep making more money and connections. Sorry.
Peace

[berniepeders]

"We, the people" don''t even have the ability to directly elect the president that the majority of the country wants. The president is elected by the party faithfuls who are members of that d-a-m-n-e-d electoral college. The general population has no control over what goes on in Washington, admit it, and get over it.
Peace

[berniepeders]

WHEN WILL PEOPLE WAKE UP AND REALIZE THE GOVT IS RAPING US??!! And we stand by and do ABSOLUTELY NOTHING about it but b i t c h and whine! Posted by cricketbeers

cricketbeers: What exactly do you propose that "we" do?
Peace

[whatithink10]

FromTexwLove,

Then Reagan was a Communist.

Why don''t you guys have any problems with the redistribution of wealth from the middle class/poor to the rich?

[lochlan-2009]

By Mark Pittman, Bob Ivry and Alison Fitzgerald

Nov. 10 (Bloomberg) -- The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.

Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn''t require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return."

STEAL, LIE, STEAL, LIE. That''s the Bush Regime. Of course, why can I walk down the street and ask people if they know what Clinton did in the oval office, and get the right answer, but when I ask, after two president Bush''s, if these same people know about Bush''s family history with the bank oil companies, NONE of them know that Prescott Bush''s bank, UBC, was siezed by the US government under the "Trading with the Enemy Act" because of their using the bank to fund the Nazi''s in the 30''s and 40''s. What''s going on with the banks and financial markets right now, after record profits with the oil companies? Didn''t this same scam happen during the Reagan Bush years and the S&L scandal?

America is such a lie.

[flsunjnky]

Yea, good job Bush for allowing all of this to happen. Good job Bush for your socialistic ideas on the buying of big banks. Good job Bush for swindling taxpayers. Good job Bush for nearly bankrupting this entire country! It%u2019s time for them to go!