WKYT | Lexington, Kentucky | News

Bank Bailout May Hurt Taxpayers, Be Open to Fraud

WASHINGTON (AP) - A government report finds some potential flaws
in the federal bank bailout program.
In a 250-page quarterly report to Congress, the rescue program's
special inspector general concludes taxpayers are increasingly
exposed to losses and the government is more vulnerable to fraud.
The report also says that a private-public partnership designed
to rid financial institutions of their "toxic assets" favors
private investors. It also says the six-month old, $700 billion
Troubled Asset Relief Program could become unfair to taxpayers.
Inspector General Neil Barofksy takes the Treasury to task for
not implementing previous advice. The report also commends the
government for creating some safeguards, but says more are needed.
The report being released today comes as lawmakers demand
evidence that banks are being held accountable.


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