GAO: Bailout program needs more oversight

WASHINGTON, Dec. 2 (UPI) -- The federal government's $700 billion bailout program for the U.S. financial industry lacks sufficient oversight, congressional investigators said.

The Government Accountability Office said the Treasury Department should act rapidly to guarantee that banks are complying with the plan's limits on conflicts of interest and executive compensation, The Washington Post reported Tuesday.

The Government Accountability Office, which is the non-partisan investigative arm of Congress, also said it is premature to determine whether the bailout program is working as planned.

"Without a strong oversight and monitoring function, Treasury's ability to help ensure an appropriate level of accountability and transparency will be limited," the report said.

In response, the Treasury Department agreed that it needed more internal controls over the plan.

"We believe that Treasury has made significant efforts to ensure transparency and good communication," Neel Kashkari, the head of the department's bailout program, said in a letter, "but more can and will be done in these areas."