TARP Inspector: Politicians Tried Influencing Payouts

neilbarofsky tbi

The inspector general for TARP — the government’s $700 billion bailout of the financial industry — says lawmakers asked regulators to fund certain banks, but found no evidence that outside lobbying influenced decisions.

As CNNMoney.com reports:

“Barofsky found 56 instances in which outside parties contacted regulators. Of those 56 firms, 16 got bailouts. And three of those 16 companies did not meet standard bailout criteria, but received money after regulators found “mitigating factors” justifying help, according to Barofsky.

The inspector general’s report did not disclose the names of the banks examined or the people, including lawmakers, who lobbied on their behalf.

Barofsky said he found no evidence that bailouts were granted because of outside lobbying.”

The report doesn’t name names, but Reps. Barney Frank and Maxine Waters have already been called out for helping get funds for banks they had ties to. Note that just because the moneydollers ignored their pressure, this report doesn’t absolve politicians who tried to influence the process.

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