December 10th, 2008
11:30 AM ET
5 years ago

Congress demands answers on bailout

Frank wants more answers from Treasury.
Frank wants more answers from Treasury.

NEW YORK (CNNMoney.com) - Key lawmakers blasted Treasury Wednesday for its handling of the $700 billion financial rescue plan, saying it lacks appropriate measures to ensure the bailout is working.

At a hearing held by the House Financial Services Committee, committee chairman Barney Frank, D-Mass., accused Treasury of failing to address its obligation to address foreclosures and enforce lending obligations on banks.

"Refusal so far to use money for that purpose [of foreclosures] undermines the intent of the bill," said Frank. "What troubled me was when Treasury was asked by the Government Accountability Office, 'What are you doing to ensure banks are lending?,' they appeared to be saying, 'We're not going to try to find that out.'"

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Filed under: Congress
soundoff (154 Responses)
  1. DebM, Allentown, PA

    I'm sorry to say that this doesn't surprise me in the least. They handed the keys to the hen house directly to the foxes that had raided it in the past. There should have been more accountability and direction built into the bailout. I'm sorry that the Dems listened to Bush and Paulson and believed that things were as dire and urgent as they led us all to believe. We should have taken more time to build this bailout the way that it should have been structured from the beginning.

    December 10, 2008 12:11 pm at 12:11 pm |
  2. Sweetie

    This reminds me of the time my grown daughter needed $6,000.00 to save her and her family from bankruptacy.....

    Later after giving the money to her we found out that her husband wanted "Special Tires and stuff" for his truck.....

    Needless to say we will never give them money again!

    It seems the Big Banks wanted the cash to buy up the Little Banks!

    NO MORE TAXPAYER BAILOUT MONEY!

    December 10, 2008 12:12 pm at 12:12 pm |
  3. NJ

    This is a mess that the government has made so much worse!!! We ar ein a downward spiral b/c of these two!!!!
    I say let the banks go under....there are other smaller banks that are doing great.
    I am so upset with this country and how they handled all of those CEOS and their extravgant vacations!!!
    Does nobody see whats going on?!?!?!?!

    December 10, 2008 12:18 pm at 12:18 pm |
  4. Baze

    congress wants this and that, and gets nothing.

    December 10, 2008 12:18 pm at 12:18 pm |
  5. Sian

    It baffles the mind. If Congress is so aghast at the handling of the Bailout plan, why then are they so willing to dole out even more money in the form of an Auto Bailout? These people sicken me!

    December 10, 2008 12:19 pm at 12:19 pm |
  6. Apples for sale

    You dont think Paulson is a crook do you?Hes been using the Auto loan debate as cover,while trying to figure out where to hide his cut of the money.

    December 10, 2008 12:19 pm at 12:19 pm |
  7. Ron Ft. Myers

    Frank, of all people ,has a lot of nerve even being involved in any of the meetings. He is a key reason we are in this mess and yet he has the audacity to question anyone! This entire charade with whether the bail out would happen or not is getting old. We all know they are going to give them OUR money and the money is going to pay for retirement/healthcare benefits and do nothing to correct the problem. Then they'll be back for more money. Unfortunately, and as usual, the morons we elected do not listen to the peolpe that put them in office, why, because they are smarter than all of us. They proved it by getting us into a mess that could not have been achieved if you had attempted to devise a plan to destroy the economy. Get rid of Barney "Rubble" Frank, Pelosi, Dodd and the others.

    December 10, 2008 12:22 pm at 12:22 pm |
  8. Jimmy

    You give $7B to a bunch of corporate robbers, and YOU GET WHAT YOU DESERVE.

    The taxpayers do not get what they deserve, which is accountability and return on "investment," if you can call it that.

    December 10, 2008 12:22 pm at 12:22 pm |
  9. Thanks BUSH! You're the BEST!

    Why weren’t these requirements of oversight BUILT IN as part of the bailout plan!!!!!!!!!!

    They weren’t, the congress just handed it over and left us taxpayers to foot the bill. Both the congress, the treasury, and just about ALL of Washington are in cahoots. This fake anger is just lip service to make it sound as if they actually care about us or what happens to our future!!!

    December 10, 2008 12:22 pm at 12:22 pm |
  10. jimmy

    What do you expect of Bush appointees, competency?

    December 10, 2008 12:22 pm at 12:22 pm |
  11. MARYANN

    THE GOVERNMENT WANTS TO BAIL OUT THE AUTOMOTIVE INDUSTRY WITH BILLIONS, DID ANYONE EVER THINK ABOUT USING SOME OF THE TAXPAYERS MONEY ON INCREASING THE UNEMPLOYMENT RATES FOR AMERICAN PEOPLE. HOW DOES ANYONE EXPECT SOMEONE TO SUPPORT A FAMILY ON A WHAT THE UNEMPLOYMENT RATES ARE. THIS IS TAXPAYERS MONEY IT SHOULD GO TO THE TAXPAYERS. YOU HAVE WALL STREET PEOPLE CRYING ABOUT NOT RECEIVING MILLION DOLLAR BONUSES BUT OUR PEOPLE CAN'T EVEN FEED THEIR FAMILIES

    December 10, 2008 12:24 pm at 12:24 pm |
  12. bob

    odd, these words of his concern about "non-accountability" when he is one of the crooks that masterminded the sub-prime downfall... barney represents everything wrong with congress..!

    December 10, 2008 12:25 pm at 12:25 pm |
  13. BeefyDaddy

    Take that money back!!

    December 10, 2008 12:26 pm at 12:26 pm |
  14. AJ

    Pelosi and Frank are trying to pull attention away from the fact that they wrote a blank check. They should have been more specific about what the money was to be used for.

    December 10, 2008 12:26 pm at 12:26 pm |
  15. Brent

    Dear Mr. Frank,

    You promoted a bill that is 20% pork. It has no provision for oversight, only aftersite.You restore all executive bonuses in the final rewrite. The same greed-driven executives who destroyed these companies are still in place laughing at you, the Speaker, and the powerless American taxpayer.

    Don't forget that 80% of America was against the bailout. The Congressional email servers crashed daily during the debates with Americans VOICING their wants to their elected representation.

    Who do you serve? It's not the American people.

    And to all the American voters reading this. Shame on you for reelecting these shills!

    December 10, 2008 12:30 pm at 12:30 pm |
  16. Get Your Act Together

    Democrats, Republicans, Whatever. Get your act together, or you are fired. If I under perform at work, I would get fired. This is getting so old. Have some self respect to do a good jod at work.

    December 10, 2008 12:30 pm at 12:30 pm |
  17. TJ

    More Bush incompetence. Paulson has done a predictably poor job in his hadling of the bailout, and the banks are not keeping up their end of the bargain. Credit is still elusive, loans are still not being given as liberally as they are needed...it appears to me the banks are simply hoarding the money and waiting until better times. We didn't bail them out for that. Predictably, the Bush administration and the banks are going to play hide and seek and get a repsidential pardon when Bush's time in office is officially over.

    December 10, 2008 12:32 pm at 12:32 pm |
  18. Maik F.

    Does no one see the irony of this whole situation? First, Congress says that we "need" to give this $700 billion to the Treasury to help with the mismanaged money from banks and Wall St...and then turn around and start asking "Why are you mismanaging our money?"

    December 10, 2008 12:33 pm at 12:33 pm |
  19. IndiePA

    Our government has not yet learned the lessons of this whole ordeal. LIVE WITHIN YOUR MEANS!!! DON'T SPEND MONEY YOU DON'T HAVE!!! The purpose of this whole bailout, beginning with the lending institutions, is to have credit available once more. To whom??...those who have already exhausted what should have been their limits? Those who lived through the Great Depression (as my parent did), taught their children the lessons above. Unfortunately, once the federal government took away the regulations put in place as a result of the Depression, excessive spending and greed were allowed to take hold. Now we're all going to pay the price, as are our children, grandchildren and great grandchildren. Are we supposed to feel relieved that the government is going to be the watchdog?? You'll have to excuse me if that doesn't give me any warm and fuzzy feelings.

    December 10, 2008 12:33 pm at 12:33 pm |
  20. rob

    What a scary picture.

    December 10, 2008 12:33 pm at 12:33 pm |
  21. CJ

    What a great pic of Nancy. I think that her time in congress will require much plastic surgery to repair. Does anyone see it coming yet? Nationalism is just around the corner. Instead of going forward we are going generations backwards. Thanks again Republicrats, more of the same.

    December 10, 2008 12:38 pm at 12:38 pm |
  22. proudliberal-independent

    the entire purpose of it was to free up the credit market. financial institutions are just suckin up the money and sittin on it. the treasury and the banks all suck!

    December 10, 2008 12:38 pm at 12:38 pm |
  23. ran

    The money should have gone directed to the people and we would be on our way out of this mess by now.

    December 10, 2008 12:38 pm at 12:38 pm |
  24. sg

    Just the sight of Frank the Pig and Queen Knucklehead sickens me. Frank has the nerve to call the shots on the bailout when he had his head stuck in the sand over Fannie and Freddie 2 years ago. Pelosi has probably received some heated calls from the UAW. That's why she's pushing so hard for the auto bailout. If Frank had been the slightest bit competent we may have averted this mess altogether and the Big 3 wouldn't need a bridge loan.

    December 10, 2008 12:39 pm at 12:39 pm |
  25. Rick

    The picture says it all......the arrogance and pompousness of those two fools is just unbelievable. It is these very people and their policies that have created the financial mess that we are in. How about we get back to some accountability in this country again and stop trying to give everything to everybody.

    December 10, 2008 12:39 pm at 12:39 pm |
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