Who's Really Calling The Shots on The Economic Bailout?
The Project on Government Oversight (POGO), a non-partisan watchdog group that advocates transparency and accountability in Washington, today fired off a letter to leaders of a half dozen relevant House and Senate committees, requesting more information on how lawmakers decided to approve the $700-billion economic bailout package. Danielle Brian, POGO's executive director, complained of a "continued lack of openness concerning the government's response" to the financial crisis and urged Congress to ensure that appropriate safeguards are put in place to prevent fraud and abuse.
From the letter:
We take no position on the merits of the various actions over recent months to address the crisis. However, Congress needs to act now to ensure that the ongoing expenditures of billionseven trillionsof the taxpayers' funds are subjected to extraordinary scrutiny.
Too few questions are being asked about the how, and even the why, behind these enormous undertakings. Even when questions do get raised, as at recent hearings, numerous important questions go unanswered. This issue is so critical we feel compelled to urge you to demand those answers, either directly from policymakers and recipients of these taxpayer funds, or through your own independent investigations.
At this writing, nearly half of the $700 billion appropriated under the Troubled Assets Relief Program (TARP) has gone out the Treasury's door with little openness. The public needs to know how the beneficiaries of their tax funds are chosen, how conflicts of interest are guarded against, and whether the integrity of the process has been assured...
Our overriding concern is the utter lack of information about who is making critical decisions involving untold billions of taxpayer dollars. It is not clear how banks or other institutions are chosen to be bailed out or allowed to fail. It is a mystery to us and to the public why one industry is favored and another is left to suffer. We are at a loss to understand how particular companies or institutions within particular industries are blessed and others are not. Irrespective of whether the decisions are made by political appointees, career employees, or Members of Congress, the decision-making process has been a nearly perfect black box.