Bailout Bucks Go to Lobbyists

(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. 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»

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»