Bailout Without Sufficient Oversight

A Disaster Waiting To Happen

November 13. 2008

Reports are surfacing that the $700 billion dollar bailout lacks oversight, which could mean taxpayer money will be misappropriated and squandered. I don't understand this type of negligence and carefree attitude in playing with a sum of money of this magnitude.

Under the circumstances, the government should want to publicly account for every penny, to increase consumer confidence worldwide - but I guess not.

Bailout Lacks Oversight Despite Billions Pledged

Watchdog Panel Is Empty; Report Is Unfinished

In the six weeks since lawmakers approved the Treasury's massive bailout of financial firms, the government has poured money into the country's largest banks, recruited smaller banks into the program and repeatedly widened its scope to cover yet other types of businesses, from insurers to consumer lenders.

Along the way, the Bush administration has committed $290 billion of the $700 billion rescue package.

Yet for all this activity, no formal action has been taken to fill the independent oversight posts established by Congress when it approved the bailout to prevent corruption and government waste. Nor has the first monitoring report required by lawmakers been completed, though the initial deadline has passed.

"It's a mess," said Eric M. Thorson, the Treasury Department's inspector general, who has been working to oversee the bailout program until the newly created position of special inspector general is filled. "I don't think anyone understands right now how we're going to do proper oversight of this thing."

http://www.washingtonpost.com