Community | March 10, 2009 | 4 comments

Four largest TARP recipients squandered billions on 'questionable transactions': memo

source: http://rawstory.com/news/2008/New_memo_details_questionable_transactions_of_0309.html

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bansheewail
Rather than using federal bailout money to reinvigorate lending to consumers, some banks that received funds from TARP have spent it on questionable items that have done little to improve the health of the country’s financial sector but have certainly helped out foreign economies such as Dubai and China.

For instance, Citigroup Inc, which received $50 billion in Troubled Asset Relief Program funds, made an $8 billion December loan, not to an American entity, but to a Dubai public sector company, according to a newly released Monday memo by Rep. Dennis Kucinich (D-OH), chairman of the House Domestic Policy Subcommittee.

The Goldman Sachs Group, which received $10 billion in TARP funds at the end of October, saw fit to spend $2 billion earlier in the year on the repurchase of company stock, which resulted in an increase in company share price.

The memo notes of that stock repurchase, “That increase would have constituted a significant benefit to top executives at Goldman Sachs, who typically own large amounts of company stock.”
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4 comments // Four largest TARP recipients squandered billions on 'questionable transactions': memo

  • Mymicz1
  • cybexg
    • 0
      cybexg  

    • What I find truly shocking is how many of the Republicans are fighting (preventing) the disclosure of what happened to the TARP funds that were released.

      Now, the same republicans are fighting the restrictions and requirements of transparency put upon stimulus money.

    • 3 years ago
  • bansheewail
    • 0
      bansheewail  

    • The Republicans forced the TARP down the American people's throats using fear tactics at he very end of the Bush error. Paulson made sure there was no oversight and no chance for his dispursments to be reviewed by any federal agency and no recourse for his actions or the actions of the recipiants to be tried in any US Courts. It was not a bailout. We got JACKED! If taking taxpayer money and investing it abroad so your stock opotions look a little better is not SOCIALISM. It is however, FASCISM. Look it up.

    • 3 years ago
  • Bren589
    • 0
      Bren589  

    • thats just great we give them bailout money to give to another country. way to go people. that money should be used here in America , Not China and Dubai

    • 3 years ago
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