Big Time Corruption Discovered in the Big Federal Bail Outs

by jwright
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The corruption has begun. And Whudda Thunk?
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Last fall you may remember that Bush administration’s Secretary of the Treasury Paulson saw a major financial crisis looming and asked Congress, led by liberal Democrats since 2006, to grant him $750 billion in taxpayer dollars to “bail out” various financial institutions and banks.
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According to a recent post in the Baltimore Sun, what started out last October as a single-purpose $750 billion effort to buy toxic securities has now under President Obama and the spend happy Democrat Congress morphed into 12 separate programs that covers up to $3 trillion in direct spending, loans and loan guarantees. The program has now committed an amount equal to the entire annual federal budget.
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Treasury Secretary Paulson spent half of the original $750 billion. President Obama’s Treasury Secretary Timothy Geithner (the same guy who earlier failed to pay his federal taxes in full and now heads up the IRS) is spending the balance, and more.
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Today we have a major disclosure of corruption and fraud in the bailout program according to investigators who have opened 20 criminal probes into possible securities fraud, tax law violations, insider trading and mortgage modification fraud. The chief investigator indicated that the investigations are just the first wave of cases by his office. He expects criminal indictments to occur later this year.
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He added that ultimately, the fraud could run into the tens of billions of dollars and the risk of those kinds of criminal activities is growing as the bailout becomes bigger and more complex.
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The original $750 billion seems small now compared to the multi-trillions of taxpayer dollars the Obama Administration has proposed in further bailouts and reckless spending. The Treasury Department was asked to abandon its current proposed method of buying certain toxic assets. Treasury responded saying it would "consider" the request. Apparently corruption is no big deal.Treasury responded saying that the recommendations would be "considered"
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How will it end? How many taxpayer dollars will find their way into the wrong hands?

jaq~