We say amen to Felix Salmon’s Matthew Goldstein’s comment that this morning’s non-release release of the TARP repayees was a gigantic failure of transparency. You know, the “T-word.” That thing that everyone and their mother thinks there should be more of in the financial system. Yeah, that one.
Says Matthew: It’s hard for regulators to demand greater transparency from Wall Street banks when they can’t even live up to their own standard of greater disclosure. A case in point is the Treasury Department’s press release touting its decision to permit “10 of the largest U.S. financial institutions” to begin repaying $68 billion in federal bailout money. The only trouble is Treasury doesn’t name any of the banks that can begin repaying money to the Troubled Asset Relief Program.
Treasury, it appears, has left it up to each of the “10 of the largest U.S. financial institutions” to make their own announcements about their intentions to repay the TARP. And some, like Morgan Stanley, didn’t waste anytime putting out a PR trumpeting its plan to repay $10 billion in TARP money.
Now it’s not like this list of banks is any big secret. For weeks now, it’s been well-known that Goldman Sachs, JPMorgan Chase, American Express, Bank of New York Mellon–to name a few–were itching to repay the bailout money.
But this is a question of government accountability. If Treasury has made a decision to allow banks to repay TARP, it should tell us which banks it has given the all clear to. Why should it be left up to the banks to tell us? After all, isn’t it the taxpayers’ money that’s being passed around here.
Nor should Treasury officials pass on the names of the banks in so-called “background” sessions with favourite reporters. The best government is one that is run in the open–not in some closed-door Washington, D.C. conference room. Read the whole thing >
Not much to add, but really, this should’ve been an easy one to get right. Just publish a freakin’ list of 10 banks.