Bailout cop: Treasury fibbed to save economy

CNNMoney.com ^ | October 5, 2009 | Jennifer Liberto

[South40]

Barofsky, reviewing the first big bailouts to 9 firms, concludes that the government was too rosy to the public about the banks' health.

WASHINGTON (CNNMoney.com) -- A government watchdog says federal officials weren't entirely honest with the public about the health of the first 9 financial firms that got federal bailouts, according to a report released Monday.

Bailout special inspector general Neil Barofsky says in an audit that Treasury Department officials painted an overly rosy picture, creating "unrealistic expectations," when they called the first bailout banks "healthy" institutions that would be able to lend more with government help.

"It is not our intent to suggest that government officials should make public their concerns over the financial health of individual institutions, but rather that government officials should be particularly careful, even in a time of crisis, of describing their actions (and the rationales for such actions) in an accurate manner," the report stated.

[rabscuttle385]

*Ping!*

[4rcane]

they saved the big banks, but the economy will take because of it

[Just mythoughts]

Didn't BamaKennedy promise he would redistribute the wealth?

[4rcane]

take=tank

[kempster]

How can we ever trust any of them again?

[giotto]

How can we ever trust any of them again?

That's sarcasm, right?

[kempster]

You thought I was serious?

[giotto]

Sorry...In that case, LOL.

[EBH]

the lesson is straightforward: accuracy and transparency

Right....?

[Conservative Vermont Vet]

Not to pile on to Bush for all of the serious “errors in judgment” he was responsible for, but I consider Paulson one of his worst (other than probably, keeping Mineta on at the DOT) and think Paulson should be doing hard time in Leavenworth as well being somewhat responsible for the financial meltdown debacle leading up to the 2008 election loss.

[Wolfie]

Why bring Bush into it? This is all Obama’s fault, doncha know.

[GOPJ]

My guess is they weren’t entirely honest about housing either - - or consumer spending ...

[randita]

They’ve been playing a little game, trying to boost public confidence in the economy and financial institutions so we’ll start spending and borrowing like drunken sailors again. It’s not working and it won’t work. This crap has to work its way through the system and it will eventually, no matter what the scam artists in D.C. do.

[April Lexington]

This reminds me of the concept that the "government" can''t disclose the existence of flying saucers because everyone will panic. I don;t believe in flying saucers, but I have full faith in the lying capacity of a corrupt "government" in Washington who believe, wrongly, that the American public are a bunch of idiots. We are not, and November 2010 will prove that point.

THROW THEM ALL OUT!

[April Lexington]

If we can't even trust the regulators to tell the truth, then who in heck would ever put money in these markets? The whole system is run by a bunch of corrupt, relative morality children. Who can risk life savings in a market run by Geithners?????

[April Lexington]

Why bring Bush into it? This is all Obama’s fault, doncha know.

[April Lexington]

At some point, I fully expect Obama to start blaming George Washington!

[jiggyboy]