Geithner Cracks Down on Bailout Lobbyists

By Kevin Spak,  Newser Staff
Posted Jan 27, 2009 10:01 AM CST
Treasury Secretary-designate Timothy Geithner delivers his opening statement on Capitol Hill in Washington, Wednesday, Jan. 21, 2009, during his nomination hearing before the Senate Finance Committee.   (AP Photo/Pablo Martinez Monsivais)
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(Newser) – Timothy Geithner announced new rules cracking down on lobbyist influence over government bailout funds today, the Wall Street Journal reports. “American taxpayers deserve to know that their money is spent in the most effective way to stabilize the financial system,” the newly-minted Treasury secretary said. Contact with lobbyists will be tightly restricted when it comes to aid applications, and each investment decision will be certified to congress.

The new Treasury team is also promising to track lending patterns, limit executive compensation at firms that take government cash, and prevent shareholders from being unduly rewarded.