Now here's shocking news.
The US Inspector General says in a quarterly report that the Troubled Asset Relief Program (TARP) is tilted in favor of bank investors over taxpayers.
Isn't this what the average person on the street has been saying for six months?
Taxpayer bailout money hasn't resulted in increased bank lending, which has declined. Instead, banks have used taxpayer money to bail out their investors.
In a twist of the military "don't ask, don't tell" policy, the report states the US Treasury has also refused to adopt the inspector general's earlier recommendation that all recipients of TARP funds account for the use of all government money received. Consequently, banks haven't had to disclose where and how our tax dollars have been spent.
The historic heist of our tax dollars can only be remedied by public take over of failed banks.
Bank bailout may hurt taxpayers, be open to fraud
By JIM KUHNHENN
ASSOCIATED PRESS WRITER
April 20, 2009
WASHINGTON -- Taxpayers are increasingly exposed to losses and the government is more vulnerable to fraud under Obama administration initiatives that have created a federal bank bailout program of "unprecedented scope," a government report finds.
In a 250-page quarterly report to Congress, the rescue program's special inspector general concludes that a private-public partnership designed to rid financial institutions of their "toxic assets" is tilted in favor of private investors and creates "potential unfairness to the taxpayer."
The report, which examines the six-month old, $700 billion Troubled Asset Relief Program, is scheduled for release Tuesday.