A report released Tuesday by the Office of the Special Inspector General for the Troubled Asset Relief Program, said the Treasury Dept. should take steps to better manage its financial-rescue effort so that taxpayer dollars are safeguarded and programs are more fraud-resistant, accountable and transparent.
From The WSJ: “The significant Government-financed leverage presents a great incentive for collusion between the buyer and seller of the asset, or the buyer and other buyers, whereby, once again, the taxpayer takes a significant loss while others profit,” the report said.
The report also said the Treasury should impose conflict-of-interest rules on firms participating in the program while disclosing information about its beneficiaries, and provide the public more information on how firms that have received bailout funds are using that cash.
Addressing one of the Treasury’s newest efforts, the [report] said fund managers that participate in the Treasury’s program to address toxic assets, the Public-Private Investment Program, could take advantage of the program at taxpayers’ expense.
Reuters: “Aspects of PPIP make it inherently vulnerable to fraud, waste and abuse…. collusion between participants and vulnerabilities to money laundering,” said TARP’s special inspector general Neil Barofky.
Sounds like a critical and well-written report. Unfortunately, it will be totally ignored.