Tuesday, April 21, 2009
Bank Bailout Is Ripe For Fraud
Inspector general cites potential flaws in bank bailout, urges Treasury to adopt safeguards.
WASHINGTON (AP) -- 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."
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My Comment: Many red flags are waving .... but no one is doing anything. I guess there are too many hands in the till.