The Impossible-To-Track Bank Bailout

CBS Evening News: Information Blacked Out On How Much In Tax Dollars Key Players Are Getting Paid

(CBS)  Government officials promised no secrets. In their own words:

"We need transparency," Treasury Secretary Henry Paulson said.

"The bright light of accountability," House Speaker Nancy Pelosi said.

"People need to see what we're doing," Interim Assistant Secretary of the Treasury Neel Kashkari said.

Yet almost four months into the biggest bailout in history, the Treasury Department is under intense fire for secrecy as to how banks got and spent taxpayer billions, CBS News investigative correspondent Sharyl Attkisson reports.

Even companies that the Treasury Department hired to manage the bailout have been allowed to keep crucial details away from the public eye.

The contracts were awarded to handpicked auditors and law firms without competitive bidding. The bill is $37 million tax dollars - and growing by the minute.

Yet in one contract after another, vital information is blacked out, such as how much people are getting paid and who the key players are. There's even the Bank of New York Mellon which got $3 billion in bailout money - and got hired to manage the bailout, too. How much are they being paid? Blacked out.

Treasury calls the missing information "proprietary," a business secret. But the watchdog appointed by Congress says it ought to be public.

"If I had my way, there would not be contracts with blacked-out portions," said Elizabeth Warren of the Congressional Oversight Panel. "If you're going to take taxpayer money, then the deal has to be that you're open and above board with the American people."

It gets even worse. The secrecy also extends to an even bigger rescue program you may not have heard about at all.

Last September, the Federal Reserve quietly relaxed its rules for giving loans to banks and institutions. Since then, it's loaned out $1.2 trillion.

And even Congress can't get a top banking regulator to tell who got the money.

"Which institutions received that and how much for each institution?" asked Rep. Alan Grayson.

Federal Reserve vice-chair Donald Kohn said, on Jan. 13, 2009: "I'd be very concerned, Congressman, that if we published the individual names of those borrowing from us, no one would borrow from us."

Grayson responded: "You're saying that entitles you to keep secret the $1.2 trillion? Four thousand dollars for every man, woman and child in this country?"

"I don't think we're keeping it secret," Kohn said. "I think we're releasing a lot of information about it."

But this is about more than whom was receiving what money. All this secrecy may make it impossible to know whether all the spending is doing any good.

[tincup356]

it is about time to start rolling caravans into Washington and completely circle capitol hill, turn off all the utilities and don''t let anyone out unless they are under arrest for treason and jailed without bail.....any others that don''t want to come out...go in and forcibly remove them.....they are all traitors and thieves, and need to be dealt with as such.

[airport1207]

I know most of the money has ended up in the hands of the executives of those banks.

[payasyougo]

Just turn the IRS loose on them.

That would be the government agency that performs the Income Redistribution Service.

[getoffmine1]

I don''''t claim to know much about political & government issues. What I truely don''''t get is this whole trillion dollar bank bail out. Call me naive but if the are approximately 250 million people (adults) in the united stated and the government bailed each of those people out with 2 million per person. It would only cost the government 500 million as opposed to trillions of dollars. I can''''t imagine anyone who couldn''''t benefit from 2 million dollars and it would eliminate our having to track where this trillion dollars is being spent. Isn''''t the government suppose to be for the people and by the people? I say anymore bailing out should be to the people?

Posted by NMon at 11:45 AM : Jan 29, 2009

Ok you''re naive. If you wanted a $2.00 per person bailout that would be 500 million.
Also, while I don''t agree with giving banks our money I don''t agree with giving individuals money for nothing either. Chances are you will not pay 2 million in taxes over your lifetime so why would you deserve to be given 2 million? Another point people making this argument don''t want to take inot account is as a rule most people are lazy. If you give most americans 2 million dollars you won''t have much of a work force after that.

[teg203-2009]

It''s as if Bush helped create his own severance package using billions of untraceable tax payer dollars. Way to go, America!

[wardoglrs]

Dont blame the Dem''s & The repub''s Blame yourselves your the fool''s who voted them in.

Stupid voters = stupid leaders

[nmon-2009]

I don''t claim to know much about political & government issues. What I truely don''t get is this whole trillion dollar bank bail out. Call me naive but if the are approximately 250 million people (adults) in the united stated and the government bailed each of those people out with 2 million per person. It would only cost the government 500 million as opposed to trillions of dollars. I can''t imagine anyone who couldn''t benefit from 2 million dollars and it would eliminate our having to track where this trillion dollars is being spent. Isn''t the government suppose to be for the people and by the people? I say anymore bailing out should be to the people?

[likeitis5050]

Republican don''''t want to support anything that may help. Like their patron saint Rush Limbaugh, they want President Obama and the nation to fail. When things do turn around, President Obama and the Democratic Party will deservedly receive all the credit.
Posted by Jesus_in_pee

Try coming up with an original thought, or at the very least, stop cutting and pasting to every board...you dullard.

[andie52]

The government should have analyzed all of the bailouts as carefully as they are analyzing and dissecting the stimulus package that is in the works now.

[jesus_in_pee]

This whole deal stinks to high heaven. It is wrong and unethical to bail out these crooks.

Posted by hologram5 at 08:54 AM : Jan 29, 2009


Republican don''t want to support anything that may help. Like their patron saint Rush Limbaugh, they want President Obama and the nation to fail. When things do turn around, President Obama and the Democratic Party will deservedly receive all the credit.

"OK, I''ll send you a response, but I don''t need 400 words. I need four: I hope he [President Obama] fails."
Rush Limbaugh
http://mediamatters.org/items/200901280001

[hologram5]

This whole deal stinks to high heaven. It is wrong and unethical to bail out these crooks.

[jesus_in_pee]

Republican don''t want to support anything that may help. Like their patron saint Rush Limbaugh, they want President Obama and the nation to fail. When things do turn around, President Obama and the Democratic Party will deservedly receive all the credit.

"OK, I''ll send you a response, but I don''t need 400 words. I need four: I hope he [President Obama] fails."
Rush Limbaugh
http://mediamatters.org/items/200901280001

[PacificGatePost]

BY ANY OTHER NAME, THIS IS DISRESPECT AND ABUSE, OF TAXPAYERS AND SHAREHOLDERS
-
http://pacificgatepost.blogspot.com/2009/01/disrespecting-taxpayers-shareholders.html
-
The White House and Congress continue with misguided policies, and sloppy distribution of taxpayer money.

[wardoglrs]

Masterful and arrogant wealth, created largely by Government protection of its profits, not content with its domination and influence within a single party, had sought to corrupt them both, and to that end had insinuated itself into the primaries, in order that no candidates might be nominated whose views were not in accord with theirs." %u2018Colonel%u2019 Edward Mandell House in ''Philip Dru: Administrator'', circa 1912

"When one gets in bed with government, one must expect the diseases it spreads." %u2013 Ron Paul

The inherent vice of capitalism is the unequal sharing of the blessings. The inherent blessing of socialism is the equal sharing of misery. %u2013 Winston Churchill



For the want of a nail,the shoe was lost,for the want of a shoe the horse was lost,for the want of a horse the rider lost,being overtaken and slain by the enemy, all for the want of care about a horseshoe nail.
Benjamin Franklin

[vincan-2009]

Well what do you expect when that is just exactly what Bush and Henry Paulson wanted. The congress voted to approve the bailout only after insisting that oversight and accountability would be required. But as is typical with the Bush administration and everything they have done - there was nothing but except secrecy and probably corruption that will be shocking.

[homespunlady]

Let''s see.. SECRET money going to SECRET places Movies sprouting up all over the place about the end of the world...Hmmmm

Wanna bet some "elite" bunch at the top are busily making plans to save their own hide in some upcoming mega-disaster they DON''T want to tell us about?

As the teaser for the latest upcoming 2012 movie says - "how do the leaders of the world tell 6 billion people they''re going to die - they DON''T.

But they sure can secretly skim off a couple of trillion to build secure and plush personal escapes so they can survive while they let the rest of the world bite the big one.

PROVE me WRONG!!!!

SHOW US where the money is REALLY GOING.

Otherwise, what other LOGICAL reason would there be for such secrecy stacked on secrecy and such a "FRIGHTENED RUSH" to spirit away so much wealth to "SECRET LOCATIONS" for "SECRET PURPOSES".

These are people well schooled in making deals manipulating currencies and assets - sometimes for generations suddenly acting now like some kind of street gang over their initiation rites.

What would have the act so out of character?

WHY did George Bush have to be helped leaving a certain briefing several months back frightened and nervously babbling about everything coming to an end?

So what will it be?
The TRUTH as horrible as it might be or OBVIOUS COVER-UPS leaving us all to assume the WORST scenario possible because a tiny cabal is OBVIOUSLY AFRAID of "SOMETHING COMING, SOMETHING BIG".

[ctla567]

The first part of TARP money was spent by the previous treasury secretary, Henry Paulson, who and Pres. Bush were just too eager to help their buddies to get rich. That money I believe is a goner, although I hope the new Pres. Obama would want to investigate how that money was spent. The second part of TARP money was spent by Obama''s administration, they better get it right this time.

[mainedoggie]

=======
Oh wait...one bail out s.crewed up...and a stimulus package just overwhelming passed by Democrats in the House...that silly Pelosi...what a t.ramp.

Posted by likeitis5050
=======


But the bailout was spawned by republican thugs?
4 thousand bucks out of your pocket and for no good reason. You silly goose! (I could''ve called you a *********)

[likeitis5050]

Oh wait...one bail out s.crewed up...and a stimulus package just overwhelming passed by Democrats in the House...that silly Pelosi...what a t.ramp.