Senators Target Fat Cat Abuse of Financial Bailout Money

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.


As we’ve seen from numerous contracting scandals in Iraq, the federal government can be great a handing out money (sometimes literally shrink-wrapped piles of it), but less skilled in tracking where it goes. So it’s without much surprise that we now see it throwing hundreds of billions of relatively unaccounted for dollars at financial companies as part of the Troubled Asset Recovery Program (TARP). But if senators Diane Feinstein (D-Calif.) and Olympia Snowe (R-Maine) get their way, the free-for-all may soon be reined in. According to a statement released today, they plan to reintroduce their Accountability for Economic Assistance Act (.pdf) to the Senate when it reconvenes in January. “At present, we don’t know whether these companies are using these funds to fly on private jets, attend lavish conferences or lobby Congress,” says Feinstein. “This bill puts clear restrictions on how funds can be used and mandates public reporting requirements to allow taxpayers to find out how their money is being spent.”

The bill’s provisions, according to the press release:

  • Prohibit firms receiving economic assistance from Treasury or emergency loans from the Federal Reserve from using such funds for lobbying expenditures or political contributions;
  • Require that firms receiving assistance provide detailed, publically available quarterly reports to Treasury outlining how federal funds have been used;
  • Establish corporate governance standards to ensure that firms receiving federal assistance do not waste money on unnecessary expenditures; and,
  • Create penalties of at least $100,000 per violation for firms that fail to meet the corporate governance standards established in the bill.
  • We've never been very good at being conservative.

    And usually, that serves us well in doing the ambitious, hard-hitting journalism that you turn to Mother Jones for. But it also means we can't afford to come up short when it comes to scratching together the funds it takes to keep our team firing on all cylinders, and the truth is, we finished our budgeting cycle on June 30 about $100,000 short of our online goal.

    This is no time to come up short. It's time to fight like hell, as our namesake would tell us to do, for a democracy where minority rule cannot impose an extreme agenda, where facts matter, and where accountability has a chance at the polls and in the press. If you value our reporting and you can right now, please help us dig out of the $100,000 hole we're starting our new budgeting cycle in with an always-needed and always-appreciated donation today.

    payment methods

    We've never been very good at being conservative.

    And usually, that serves us well in doing the ambitious, hard-hitting journalism that you turn to Mother Jones for. But it also means we can't afford to come up short when it comes to scratching together the funds it takes to keep our team firing on all cylinders, and the truth is, we finished our budgeting cycle on June 30 about $100,000 short of our online goal.

    This is no time to come up short. It's time to fight like hell, as our namesake would tell us to do, for a democracy where minority rule cannot impose an extreme agenda, where facts matter, and where accountability has a chance at the polls and in the press. If you value our reporting and you can right now, please help us dig out of the $100,000 hole we're starting our new budgeting cycle in with an always-needed and always-appreciated donation today.

    payment methods

    We Recommend

    Latest

    Sign up for our free newsletter

    Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

    Get our award-winning magazine

    Save big on a full year of investigations, ideas, and insights.

    Subscribe

    Support our journalism

    Help Mother Jones' reporters dig deep with a tax-deductible donation.

    Donate