Treasury Defends Bailout Decision-Making Process, Admits it 'Gets Calls' From Congress
Neel Kashkari, the Bush administration holdover who remains assistant Treasury Secretary for financial stability, just told Rep. Dennis Kucinich's (D-OH) House oversight subcommittee that the department does "get calls" from members of Congress as well as governors seeking to weigh in on which banks get bailout money from the government.
Kashkari's admission came in response to Rep. Darrell Issa (R-CA), who asked him about a recent report that House Financial Services Committee Chairman Barney Frank (D-MA) and Ohio lawmakers interceded with Treasury to help win aid for their home-state banks.
"It's important for us to get feedback" from politicians on their local businesses, Kashkari said. But he underscored that a process has been put in place to ensure that political concerns don't influence the disbursement of bailout money, adding: "I feel confident that there is no undue influence at Treasury ... I'm concerned that these stories are out there because they undermine confidence."
















This is why government should not be doing this. The bad banks must fail without government propping them up. Government is an absolute fucking failure at ruinning a business.
If anyone thinks the banks are a clusterfuck now, just wait a few years under this failed bailout paradigm when the chaos and corruption will be more obscene as a result of politicians running the banks.
March 11, 2009 12:12 PM | Reply | Permalink
correction:
running a business
March 11, 2009 12:12 PM | Reply | Permalink
United States Postal Service?
Have Congress enact legislation allowing them to compete as a business rather than a Government-Sponsored Enterprise.
(let me know so I can short Fedex and UPS)
Then figure between 1 and 3 years before Fedex and UPS are both out of business.
That may be the exception that proves the rule, but they are a government run business, and they're restricted from putting the hurt on competitors.
March 11, 2009 1:10 PM | Reply | Permalink