Geithner Cracks Down on Bailout Lobbyists

Bailed-out firms' spending on lobbying threatens to spark government backlash

(NEWSER) - A surprising number of firms that reaped billions in bailout funds from the government have been spending big to lobby the government for more, the New York Times reports. Citigroup, General Motors, and at least seven others have paid lobbyists millions since October. Some recipients actually increased the amount they spend to promote their interests in Washington. More»

Bank bailout is highlight of latest accounting

(NEWSER) - So it's not exactly zero, but the $388 billion the feds dumped into bailouts is going to end up with a final price tag of ... $29 billion, reports the New York Times. Most of Treasury's losses are focused in housing rescues ($46 billion) and the Detroit bailout ($17 billion), while other segments of TARP actually reaped profits—like the $22 billion feds expect to pocket when they sell their stake in AIG. More»

(NEWSER) - Attempts to revive the banking industry so far have been “inadequate,” Timothy Geithner said today, promising to “fundamentally reshape” the government’s plan to rescue banks, driven by more forceful action. “We want their balance sheets cleaner and stronger,” Geithner said. To do it, he’ll force banks to go through a “stress test,” and roll out a host of new and expanded programs. More»

(NEWSER) - Stocks slid at the open, after Timothy Geithner pushed back the announcement of his much-anticipated bank rescue plan until tomorrow. The Dow dropped 40 points, while the Nasdaq and S&P barely budged, falling 0.6% and 0.4% each. But financial stocks actually rose, with Bank of America, Citigroup, and Morgan Stanley all up. Barclays shot up 13%, after announcing it wouldn’t take more cash from the British government. More»

Despised TARP expires Sunday

(NEWSER) - The terms "$700 billion" and "bailout" are paired as often as "Tea" and "Party," but it turns out that the government lifeline to banks and auto firms will only cost taxpayers a fraction of what was originally predicted. The hugely unpopular Troubled Asset Relief Program—TARP—expires on Sunday, and Treasury officials say the program will cost the government $50 billion at most—and possibly nothing. AIG , the largest beneficiary, yesterday announced a plan to start paying the government back. More»