Treasury Shifts Focus to Consumer Credit

Money for Detroit isn't the 'purpose' of the bailout: Paulson

(AP) - Treasury Secretary Henry Paulson told Congress today he opposes tapping a $700 billion taxpayer-funded bailout pool to help struggling US automakers. Paulson and Federal Reserve Chair Ben Bernanke were on Capitol Hill defending their management of the bailout program, just a week after the Bush administration abandoned the original strategy behind the rescue. More»

(NEWSER) - Anybody seen $700 billion? The government watchdogs charged with overseeing TARP spending don't seem able to answer even basic questions about where the money went, Chris Adams writes at McClatchy. A special inspector general, a congressional panel, and eight other inspectors general are supposed to be keeping track of the funds, but they haven't been given the tools to do the job properly, Adams writes. More»

Inspector calls TARP 'inherently vulnerable' to insider trading, abuse

(NEWSER) - Federal authorities have begun 20 separate investigations into possible fraud, tax violations, insider trading, and other criminal activities surrounding Henry Paulson's $750 billion Troubled Asset Relief Program, reports the Los Angeles Times. It's only the first round of probes, according to the bailout program's inspector general, who called TARP "inherently vulnerable to fraud, waste, and abuse." More»

Frank, others pull strings for bailout funds

(NEWSER) - Only healthy banks are supposed to get TARP funds, and OneUnited Bank in Boston is not a healthy bank. So why did it wind up pocketing a $12 million infusion from the Treasury? Because powerful Massachusetts Rep. Barney Frank interceded for it, the Wall Street Journal reports. Bankers, regulators, and politicians are complaining that bailout funds are being doled out based more on political influence than any other criteria. More»

Request likely to set off more hand-wringing in Congress over bailout tactics

(NEWSER) - Treasury Secretary Henry Paulson called today for Congress to release the second half of the $700 billion bailout fund, but his plea isn’t being echoed at the White House—which would have to make the formal request, the Wall Street Journal reports. “It’s not necessarily true that this administration, in the remaining 31 days, I believe, will go back to Congress,” an aide to President Bush said. More»