Regulators overseeing the government’s $700 billion financial bailout again called for better oversight of the program in testimony before the Senate Banking Committee on Thursday, warning the some programs were vulnerable to fraud.
The regulators said that a clearly stated overarching strategy was needed as well as more transparency to track how banks are using billions in taxpayer dollars.
The officials also warned that a $200 billion program to get credit flowing for consumer, auto and student loans was ripe for abuse and that the Treasury Department should not spend any taxpayer money on the lending program until it sets up safeguards.
In two reports and written testimony, officials charged with overseeing the bailout testified Thursday that the government must also address rising home foreclosures and collect more information from banks that have received assistance.
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