The Impossible-To-Track Bank Bailout

(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