Treasury rapped for no bailout specifics

WASHINGTON, Dec. 10 (UPI) -- A House committee Wednesday criticized the U.S. Treasury for failing to ensure the $700 billion financial markets bailout is doing what it's supposed to do.

"This was supposed to help keep people in their homes, make it possible for the American people to make large purchases like automobiles that could boost our ailing economy," Rep. Bill Pascrell, D-N.J., said during the House Financial Services Committee. "Sadly, that does not seem to be occurring."

Committee Chairman Barney Frank, D-Mass., said he was distressed that the Treasury Department hasn't used any funds so far to reduce the number of foreclosures.

"The refusal so far to use the money for that purpose has been, I think, a violation of the intent and undermines the ability to get the votes in this Congress to do things in the future," Frank said.

Among those appearing before the committee was Assistant Treasury Secretary Neel Kaskari, who is overseeing the rescue plan's distribution of funds.

Ranking Republican Sen. Spencer Bachus of Alabama noted struggling auto companies had to offer explanations and documents in seeking a loan package, which "stand in stark contrast to the lack of information we've received from Treasury or the financial institutions that have received taxpayer money under (the Troubled Asset Relief Program)."

Among other things, a Government Accountability Office said Treasury officials did not communicate expectations for the financial institutions receiving funds nor did the department articulate to Congress or the American public what it hoped to achieve through the program.

Kaskari said department officials recognize the importance of a more comprehensive communication plan and "we are looking at ways to enhance our communications, while recognizing that the TARP program is just one piece of a comprehensive response to the financial market crisis."