Daylife/AP Photo by Charles Dharapak
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It’s something any bank would demand to know before handing out a loan: Where’s the money going? But after receiving billions in aid from U.S. taxpayers, the nation’s largest banks say they can’t track exactly how they’re spending the money or they simply refuse to discuss it.
“We’ve lent some of it. We’ve not lent some of it. We’ve not given any accounting of, ‘Here’s how we’re doing it,'” said Thomas Kelly, a spokesman for JPMorgan Chase, which received $25 billion in emergency bailout money. “We have not disclosed that to the public. We’re declining to.”
The Associated Press contacted 21 banks that received at least $1 billion in government money and asked four questions: How much has been spent? What was it spent on? How much is being held in savings, and what’s the plan for the rest?
None of the banks provided specific answers.
“We’re not providing dollar-in, dollar-out tracking,” said Barry Koling, a spokesman for Atlanta, Ga.-based SunTrust Banks Inc., which got $3.5 billion in taxpayer dollars.
Some banks said they simply didn’t know where the money was going.
The FDIC maintains a list of who got how much. There were/are deadlines. Implicit in the process is that if you don’t take the money – and you get in trouble later on – you missed your sole opportunity for assistance. If you didn’t take the money, it can be implied you’re beyond help – you refused to cooperate with the government and the program.
Some federal banking regulations require non-cooperation with oversight and public questioning. Banks aren’t even allowed to say if there is a regulation forbidding them to discuss a specific topic!
(gasp) You went and told ’em.
Yeah – ask your “personal banker” what the bank’s CAMELS status is.
Why should banks do more than our own government does?
Their is lack of accountability/transparency/fraud THROUGHOUT our government.
Bush and his repuglican henchmen are quite happy with this state of affairs, and Obama doesn’t know whether or not to continue it for himself for the same reasons.
Politics is a dirty business for dirty people. If you are clean going in, you’ll be dirty coming out.
bobbo,
Obama is just the new front man for the Corporate Oligarchy. Your fooling yourself if ya think he’s any different.
Banks are supposed to be expert at keeping track of funds. Isn’t that almost their primary skill?
How can they NOT know where the funds are going?
So the only logical conclusion is that they do not want the people or the government to know where the funds are going, so they put up cleverly crafted smoke screens to hide it.
#4 hit it right on the head. When was the last time you heard of a banker not knowing the exact amount, source and expenditure for every penny? There are a few possibilities:
1. They intentionally did not track it because that would get them into more trouble.
2. They really are that incompetent which begs the question of why were saving them or at least why we are letting them continue with the same people.
3. They do know where it was spent but lied because it would get them into more trouble (as if the lying wouldn’t).
bobbo, get off the BDS. This is in the hands of Congress. Bush simply signed the bill but Congress is in charge of ensuring it gets spent correctly.
Completely agree #4
That is a banks expertise – being able to track money. All their people, technology, skills and infrastructure is about tracking money. You can be sure if you’d underpaid a bill by 1 cent – they’d track that right to your door. The idea that somehow they couldn’t track where this money is or went is ludicrous.
Therefore you can only assume they don’t want the unwashed masses to know. Why? Now there’s an interesting question. I can only assume we wouldn’t like the answer.
Gee, some of these banks are publicly traded companies, right? You’d think that the onerous Sarbanes-Oxley Act would finally find a use here.
Good for them. No one should be asking any questions about what they are doing with the money. It’s their money and their business. Shame on the government for giving them the money.
My guess, they are hoarding the cash so that they don’t get into this trouble later, or so they can buy the weaker banks.
Vast. Right-wing. Conspiracy.
“Where is the bailout money going?”
Ask Pelosi.
@ #10
Why? Does she work at all the banks too? Like a cashier or something…
But yeah I see your point. I mean clearly it must be all her fault.
# 11 freddybobs68k said, “Why? Does she work at all the banks too? Like a cashier or something… ”
Umm, because she & her cronies passed the legislation out of the House that didn’t require disclosure?
You aren’t from the US are you?
#3–bretail==isn’t that what I intimated? Can’t so FOR SURE because he’s not president yet. So full of bias, you can’t see agreement in words different than your own.
#4–8%==right you are but the smoke screen is about non-existent. Banks aren’t saying==but I suspect many in Congress know fairly well were the money is going and don’t wish to discuss it as they can’t “control” where it goes.
#5–Thomas==there is no BDS here. Bush IS RESPONSIBLE. As you noted–he signed the bill after recommending passage of the first 3 page memo from Paulsen. Its disgusting repuglicans like you already trying to rewrite history. As Bush is responsible for his presidency, Obama will be responsible for his as well. Partisans like you will remain irrelevant.
#8–Mike==right you are. They “KNOW” only the first sock has fallen in this crises. Got another sock and two shoes to go, maybe some galoshes too. “It wouldn’t be prudent” for them to tip their hand that they are saving the current bailout to “try” to get thru the tsunami waves already generated that have not yet hit the beach. Hard to see how most banks will survive as further bailouts aren’t likely.
Oooh lookie, here come the lets blame anything and everything on ‘not the Republicans’ brigade…. cos they didn’t do anything wrong. Ever.
Hi Pedro + Paddy-O!
It is the banks that aren’t saying where the moneys going. So wave your pointy stick where-ever, but surely they would be the people that would know presumably? Unless you think Pelosi is God like and omnipresent.
And yes I’m in the US… but thankfully not in ‘Bush is great’ville. Like you muppets.
# 15 freddybobs68k said, “Unless you think Pelosi is God like and omnipresent.”
You’re not from the US are you?
#16 I’m not a native American Indian, if that’s what you mean. But I have to say, its giving me a warm feeling all over though that you’re so interested in me. Bless.
Tell me how was your relationship with your mother? Do you feel overall you are a good person or a bad person, and why? Tell me a little about your self…
@ 18
I’m sorry – I’m not sure I understand. It seems like your saying something bad about a republican. Our awesome leader Mr Bush no less. Now that doesn’t make much sense. As if you go back through your previous posts it seems all problems lay squarely at the feet of deomcrats.
As you drone the same old point over and over again. Financial meltdown – democrats. Terrorism – democrats. Crime – democrats. Somebody didn’t empty the garbage… it’s those pesky democrats again… and so on and on and so on on and on and on… Now that is boring.
So this is a real turn up.
All I can assume is you are either not ‘Pedro’ or you’ve had a breakthrough. Hallelujah! And through this difficult time – trust we’ll all be there to help you through it. Seriously.
Now is a good time to be working at a major accounting firm like priceWaterHouseCooper, KPMG or Accenture.
$700 billion is a lot of money to keep track of. If the accounts just get .5% in fees, that’s $350 million.
#17 – FB68K
>>Tell me how was your relationship with your
>>mother?
Paddy-RAMBO has a great relationship with his mother. She lets him live in her basement for free! He gets her the employee discount on stuff she needs from Radio Shack.
OK,
1. Has anyone been shown the Bank receipts?? WHAT and how much the bank had?
2. Did we use BOOKKEEPERS to LOOK at this pile of SPIT?
3. the Money was put in the Vault and is PROBABLY STILL THERE, with ALL the rest of their money..NOT doing anything.
And I wonder what stipulations/contracts that THIS MONEY was given, and IF anyone on the Hill can WRITE a contract as well as the CC companies..
#18 – ‘dro
Now you REALLY need to STFU. At least you weren’t doing any damage with those dopey one-liners.
When you start jabbering on about “God” and “blames”, you’re giving people a headache.
Lou Dobbs just mentioned again that the bail out supposedly caused by “toxic loans” that the $750 Billion was authorized for ((nice we all forget about the $150Billion in pork that went along with that????)) has resulted in 100 (I say again: one hundred) people in default being “helped” (whatever that means). Dobbs says that if all the bad loans had been bought by the Government, it would have only cost 200 Billion.
Indeed, something doesn’t add up. And BTW==in same show, BushieBoy took credit for saving America’s Economy with this Bailout. So==yeah, its very much Bush the Idiots fault/responsibility/legacy. Too bad you repugs don’t care much about your kiddies once they get out of the vaginal canal.
We have met the enemy and he is the US government bound and determined to swindle the people.
What are we getting for all this dept?
I thought OUR GOV. was SMART…Until the 80’s…
THEN i saw that we are being guided/protected/represented by a BUNCH OF IDIOTS..
1. HOW many have ANY knowledge of RUNNING A BUSINESS..
2. How many UNDERSTAND HOW, to make business COMPETE?? If they DONT, Make your OWN business and COMPETE..
I cant see WHy the GOV didnt BUY the Loans and contact those OWNERS, and negotiate a NEW loan.
Not surprised…
I received an envelope in the mail the other day that had a bunch of cash in it. I believe it was the bailout money sent to me by mistake.
how AP can even ask the question is absurd.
The Fed pretty much demanded no oversight and complete autonomy in how the $$ was spent/allocated.
the two oversight committees that were created
were symbolic at best and a complete fraud at worst. i mean, you don’t put the guy printing the money (bernake) and the guy who will be spending the money (paulson) -in charge of oversight and expect everything to be above board and transparent..
-esp when they were the ones who lobbied not only for it, but also lobbied the deregulation changes over the past 35yrs that allowed the mess in the first place. (which also includes SEC’s Cox, who oversaw the deregulations in the last round)
-then congress pens a 400+ page bill that only empowers them only to “beg” The Fed on Capitol Hill to actually do what the bill was intended and nothing more.. (for lack of better words)
-for they gave unheard of sweeping powers that effectively put congress and the American people at the mercy of a extremely secretive private bank. (The Fed) (it’s not called the banker takeover bill for nothing)
that anyone on the hill or in the media is surprised about any of this is shear fraud and bull.
-and when will you democrat & republic pawns get a clue and realize the central banks (who own both parties) -play us against each other so they can take the cake (ie, rob us blind) while we’re busy bickering over who gets to lick the pan..?
WAKE UP!
-s
#30, sound
Your lack of grammar skills is on par with your assessment.
The Fed pretty much demanded no oversight and complete autonomy in how the $$ was spent/allocated.
No, that was Henry Paulson. He is the guy in charge of the Treasury and the guy that is in charge of the bailout.
the two oversight committees that were created
were symbolic at best and a complete fraud at worst. i mean, you don’t put the guy printing the money (bernake) and the guy who will be spending the money (paulson) -in charge of oversight and expect everything to be above board and transparent..
The oversight committees are from each house of Congress.
then congress pens a 400+ page bill that only empowers them only to “beg” The Fed on Capitol Hill to actually do what the bill was intended and nothing more.
The bailout was attached to other bills making their way through Congress. They are called Omnibus Bills and are quite common. Again, the “fed” is not the one giving out the money although I am sure they do have some input.
for they gave unheard of sweeping powers that effectively put congress and the American people at the mercy of a extremely secretive private bank. (The Fed) (it’s not called the banker takeover bill for nothing)
Where do you get this idea that the Federal Reserve is in charge of the bailout package? Or maybe what anarchist site are you getting your information from?
Like I said at the beginning, your grammar is on par with your assessment. None apparent.