Fallout: The Financial Crisis

Senate considers bailout oversight

Steve Henn Nov 17, 2008
HTML EMBED:
COPY
Fallout: The Financial Crisis

Senate considers bailout oversight

Steve Henn Nov 17, 2008
HTML EMBED:
COPY

TEXT OF STORY

Scott Jagow: Also today, the Senate holds a hearing on the nomination of Neil Barofsky. He would oversee the $700 billion rescue package. He’d have about a hundred people working for him, and have his work cut out. Marketplace’s Steve Henn has more.


Steve Henn: Since the bailout bill was signed into law, the Treasury Department’s invested more than $210 billion in banks and insurance companies. And it’s done all this with almost no oversight.

That’s created many opportunities for mischief, says, Republican Senator Charles Grassley the ranking member of the financial services committee.

Charles Grassley: Most of it is corporate executives too stupid to realize that they’re caretakers of taxpayers’ money.

AIG executives, for example, recently went on a hunting retreat in Europe.

Grassley: And in a sense thumbing their nose at the taxpayers.

Grassley says appointing Neil Barofsky to police the program should remind these executives who they’re working for. Right now, Barofsky’s a prosecutor in New York specializing in securities fraud.

Grassley says the painful experience of Iraqi reconstruction taught Congress that it’s crucial to get an inspector general’s office up and running fast.

In Washington, I’m Steve Henn for Marketplace.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.