Wall Street Bankers About to Find Out What they Asked For
Elizabeth Warren, the chair of the congressional oversight panel for the Troubled Asset Relief Program testified before the Senate Banking Committee. She noted that the TARP paid $254 billion to banks in return for $176 billion in equities, a $78 billion overpayment.
While Warren got the press, Neil J. Barofsky, special inspector general for the Troubled Asset Relief Program, released his own 188-page report describing his work over the last two months. According to the LA Times:
The report says Barofsky also will require senior bank executives to certify under criminal penalty their plans for complying with the executive pay limits that the Obama administration will impose on TARP recipients.
The plans amount to a rewrite of TARP rules. Certified explanations of the use of TARP funds were not required when the first awards were made last fall, but they were included in a second round of funding, to Bank of America Corp. and Citigroup Inc.
Barofsky said he would conduct wide-ranging investigations of the process by which TARP recipients were selected and the uses they made of the money. He said he would announce one audit target today. Any lies or misrepresentations found in applications for TARP funds would also be grounds for criminal prosecution, he said. (my emphasis)
Wall Street Bankers About to Find Out What they Asked For | War On You: Breaking Alternative News