July 20th, 2009
06:11 PM ET
5 years ago

TARP cop: Get tough on banks

WASHINGTON (CNNMoney.com) - The top cop tracking the $700 billion bailout program said Monday that he's concerned federal officials are ignoring his proposals for preventing tax dollars from being wasted or pilfered.

Neil Barofsky, the special inspector general overseeing the Troubled Asset Relief Program, released a 260-page report detailing a long list of concerns about government efforts to prop up hundreds of banks, Wall Street firms and auto companies.

The report criticizes the Treasury Department the most for its unwillingness to adopt some of his recommendations.

Barofsky cites two examples: He wants Treasury to force bailout recipients to keep track of how exactly they are spending TARP funds. He also wants officials to erect a "firewall" to prevent private investment managers - the kind hired to manage and invest taxpayer dollars - from taking advantage of insider knowledge.

"Although Treasury has taken some steps towards improving transparency in TARP programs, it has repeatedly failed to adopt recommendations that SIGTARP believes are essential to providing basic transparency and fulfill Treasury's stated commitment to implement TARP 'with the highest degree of accountability and transparency possible,' " the report stated.

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Filed under: CNNMoney.com • Economy • TARP
soundoff (26 Responses)
  1. johnnie

    Where is (RICHARD CHENEY)?

    July 20, 2009 07:17 pm at 7:17 pm |
  2. Maria - Proud Democrat

    The Treasury Dept. needs to get their act together......they are doing a terrible job at overseeing the spending of these funds.

    When is Geithner going to get rolling and start getting things done that work!

    July 20, 2009 07:18 pm at 7:18 pm |
  3. Todd (not the Alaska Separatist)

    Some of the same banks that were first in line for TARP money like Goldman Sachs are now posting billion dollar quarterly profits. Nice bounce back. How is your retirement savings faring Average American? Thanks Hank Paulson for bending over the entire country for the benefit of Wall Street.

    July 20, 2009 07:26 pm at 7:26 pm |
  4. Stop the Robber Baron Insurance Companies and The Republicans they Bribe

    Call your member of Congress. Demand the Public Option,
    Support Our President.

    July 20, 2009 07:30 pm at 7:30 pm |
  5. jrzshor

    neil

    you are so out of bounds that your boss obama will fire you like that other IG who got "disoriented" with the truth and became so "confused" that he actually verbalized it.

    July 20, 2009 07:45 pm at 7:45 pm |
  6. Louis

    WHAT A NOVEL IDEA–actually having the bailout recepients keep track of how they spend TARP funds. It is a crime that this wasn't included in the original funding bill–our legislators are a bunch of complete idiots bought and paid for by special interests.

    July 20, 2009 08:00 pm at 8:00 pm |
  7. John from California

    Bankers that take tax payers money and steal from us should be executed in public!

    It was greedy bankers and investment people that stole our retirement money and we should all see them executed and their money confiscated.

    July 20, 2009 08:03 pm at 8:03 pm |
  8. Ron in Wisconsin Dells WI

    What has to be done to end this continueing of looking the other way and not being held accountable with the way goverment is run.This is a true American tragedy that is happening right before our very eyes.Democrats and Republicans alike have got to break the ice somewhere soon.Then get on board the same bus and start hammering out true resolutions to our faltering country.It does not matter who comes up with the answers if its the best answer then go with it and stop this childish atitude

    July 20, 2009 08:09 pm at 8:09 pm |
  9. Zero.

    Top Cop? Cosmopolitan-Robert (Peel). Hanging on, by the skin of his teeth.

    July 20, 2009 08:13 pm at 8:13 pm |
  10. annie for Palin

    obama will fire Neil!

    July 20, 2009 08:19 pm at 8:19 pm |
  11. Alan

    Wait a minute!! This can't be!! Joe Biden promised us just last week that no money was going to unaccounted for under his watch. His exact quote: "That dog don't bark!" Well joe the correct term is " That dog don't hunt" and guess what!! Money is being wasted you moron!!

    July 20, 2009 08:19 pm at 8:19 pm |
  12. Geneva Conventions - disregard

    How much longer is Geitner and Mr. Gibbs going to have a job. I say fire both of these two Bozos, plus Bernanke! Get someone with brain and spine.

    July 20, 2009 08:23 pm at 8:23 pm |
  13. They don't want transparency....

    they're all in bed together taking advantage of the taxpayer.

    July 20, 2009 08:37 pm at 8:37 pm |
  14. Steve Fought

    Hey, she's a Democrat and she apologized. Isn't that enough? I mean if she was a Republican we would have to demand she resign.

    July 20, 2009 08:39 pm at 8:39 pm |
  15. Tony from Michigan

    Never in 700 Billion years!!!

    July 20, 2009 08:47 pm at 8:47 pm |
  16. Jeff

    I am certain the right wing nut jobs will pounce on this one. But in my view this is exactly the kind of reports we need to make sure that on this President's watch the store is being better minded...that whether it is TARP or GAO or other oversight, a sound and transparent accountancy of public AND private funds is and will continue to occur. I am an Independent centrist the Dems and Repubs covet, but to get my vote they'll have to earn it. By the way, President Obama you are doing just fine. Keep up the good work and fighting the good fight to rein in the unscrupulous and immoral (not all are) big corporations/ businesses that are selling out America. Thank you!

    July 20, 2009 09:03 pm at 9:03 pm |
  17. Kate in SW Fla

    So, this wild hyperbole, scare tactic, over estimating of spending is all about him whining because no one is implementing every one of his recommendations. With the recovery actually starting to take hjold, this joker wants to scare the c%ap out of everyone all over again. Must be politically motivated. either that, or stupidity. Paulson and his "the sky is falling" episode started this whole unwinding. NOw this.

    July 20, 2009 09:05 pm at 9:05 pm |
  18. joe smith

    wonder when they are going to release the Freddie Mac report; that report, again, was due the President/Mr. Geitner at the end of May,2009..almost two months late at this point, who oversees these intitutions in our new government??

    July 20, 2009 09:13 pm at 9:13 pm |
  19. June

    Small Business needs the help desperately. Help! Help!

    July 20, 2009 09:25 pm at 9:25 pm |
  20. Gary

    Bank of American, JPMorgan, Citicorp and Goldman are all making record profits! We need to stop spending taxpayer money bailing out rich banks that can fix their own problems.

    Oh yeah the GM, Chrysler and AIG bailouts were all unnecessary wastes of money as well.

    When we voted for "change" we never dreamed "change" would be soooo expensive!

    July 20, 2009 09:31 pm at 9:31 pm |
  21. stormerF

    Transparency you must be kidding thats a joke,Obama does not want transparency either on the Cap and Trade bill or The Health care bill both are just a way for the Government to get control of more of our money....Is Obama fooling America,With 47 million more on health care,and no more Doctors,Rationing will be necessary,for all but not Congress> Ted Kennedy added language to exempt them.

    July 20, 2009 09:35 pm at 9:35 pm |
  22. ramdom citizen

    well isnt this great" now the banks own 60%of our homes' i will keep my guns my liberty and my money and you can keep the CHANGE"""'

    July 20, 2009 10:14 pm at 10:14 pm |
  23. BDub

    Yes, get tough on the Banks you forced to take TARP funds. Just enough to divert attention from the real corrupt banks that are controlling our economy. For the uninformed, that would be Goldman Sachs, GE, etc. They have much to profit from with Cap and Trade, for one example. This is bi-partisan corruption, btw... We need our Country back!

    July 20, 2009 10:24 pm at 10:24 pm |
  24. sandy

    I agree that the Obama administration should start getting tough with these banks. Seems the banks are more interested in their perks and their bonuses than helping this country get back on it's feet.

    July 20, 2009 10:32 pm at 10:32 pm |
  25. BobR

    This is what we need, another attorney trying to get publicity for an eventual run for public office by "getting tough" on the big boys. The only problem with this is that the banks will now tighten up their lending practices to avoid bad publicity and negate any positive effect the TARP funds might have generated.

    July 20, 2009 10:38 pm at 10:38 pm |