How can we be sure, these stimulus plan will save jobs? I’ve doubts.
By Daniel at 7 February, 2009, 3:22 am
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Treasury Misled Public on TARP: Watchdog Group
Topics:TARP | Banking
Sectors:Banks
Companies:General Motors Corp | Citigroup Inc | Bank of America Corp | American International Group IncBy: Reuters | 05 Feb 2009 | 02:04 PM ET Text Size
The U.S. Treasury Department misled the public about the pricing mechanism it used to inject about $250 billion into financial institutions and changes are needed to improve management of the program, a congressional watchdog said Thursday.
The money was spent as part of the $700 billion bailout fund known as the Troubled Asset Relief Program (TARP), created late last year by Congress to help stabilize the U.S. banking system and revive credit markets.
At a Senate Banking Committee hearing, the taxpayer-funded program was also criticized by Democratic lawmakers who said TARP was poorly run. The Obama administration is expected to unveil a new strategy next week to help U.S. banks, which is expected to include a new approach to administering TARP.
Elizabeth Warren, chairman of a TARP oversight panel appointed by Congress, said Treasury misled the public about pricing the capital injection program.
”Treasury simply did not do what it said it was doing… They described the program one way, and they priced it another,” said Warren, a Harvard University law professor.
She also complained that after three months of reviewing the TARP program, her panel is still not getting enough answers from Treasury.
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