Why is the Corona relief bill helping out millionaires and companies that have proven they can’t be trusted to put public interest first?
Twelve years later, virtually the same course of events is taking place. After just a couple weeks of extreme social distancing measures, the Treasury Department asked for a bailout, this time of the entire corporate sector. The bill as written initially would have made all bailout activities secret for six months. Democrats balked, called it a slush fund, and then agreed to “a few mostly meaningless bits” of oversight and promises to help ordinary people. In fact they’re the same bits of oversight from the 2008 TARP bailout: a five-member oversight panel and an inspector general for the program.
The enormity of this bailout is being under-reported. The number you’re hearing is $500 billion. Of that, $75 billion goes to the airline industry and the mysteriously named “businesses critical to national security.” The other $425 helps capitalize a $4.25 trillion, with a T, leveraged lending facility at the Federal Reserve. The taxpayer dollars would soak up any losses from that lending program. Oversight is largely after the fact, without subpoena power.
How exactly do Sen. Peters, Sen. Stabenow and Rep. Upton expect a small, underfunded panel to find fraud in a $4.25 trillion lending facility!