Where'd the bailout money go? Banks aren't saying

ByABC News
December 23, 2008, 3:48 AM

— -- Think you could borrow money from a bank without saying what you were going to do with it? Well, banks borrowing from you don't feel the same need to say how the money is spent.

The Associated Press contacted 21 banks that received at least $1 billion in government money and asked four questions: How much has been spent? What was it spent on? How much is being held in savings? And what's the plan for the rest? None of the banks provided specific answers.

Secrecy and TARP

The answers highlight the secrecy surrounding the Troubled Asset Relief Program, or TARP, which earmarked $700 billion to help rescue the financial industry. The Treasury Department has been using the money to buy stock in U.S. banks, hoping that the sudden in-flow of cash will get banks to start lending again.

Lawmakers summoned bank executives to Capitol Hill last month and implored them to lend the money not to hoard it or spend it on bonuses, junkets or to buy other banks. But there is no process to make sure that's happening and no consequences for banks that don't comply.