A bill for bailout accountability
Senators Dianne Feinstein and Olympia Snowe are introducing legislation that would require bailout recipients to give quarterly reports to the Treasury Department of how they're spending the money. Nancy Marshall Genzer reports.
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Scott Jagow: Maybe we’ll get some accountability for this $700 billion bailout.
Two senators plan to introduce a bill requiring the banks to tell the government how they’re spending the money.
Marketplace’s Nancy Marshall Genzer has more.
Nancy Marshall Genzer: Democrat Dianne Feinstein of California and Republican Olympia Snowe of Maine say they’ll introduce the legislation when Congress convenes January 6. The senators’ bill would require recipients of federal bailout money to submit quarterly reports to the Treasury Department on how they’re spending it.
The measure would prohibit them from using the money for lobbying, or political contributions. It would establish corporate governance standards to be sure the money isn’t wasted. Firms that violated those standards would be fined a $100,000. The legislation was first introduced the week before Thanksgiving, but the Senate didn’t take it up.
Earlier this week, the Associated Press said it contacted 21 banks that already received bailout cash, asking how it had been spent. None of them would give an exact answer.
In Washington, I’m Nancy Marshall Genzer for Marketplace.