The top congressional watchdog overseeing the financial bailout said Thursday she's frustrated by the Treasury Department's refusal to explain how it is doling out billions in taxpayer money.
Harvard law Prof. Elizabeth Warren, the chairwoman of the oversight panel, traveled to Washington to get answers on how Treasury is managing the unprecedented bailout.
The Democratic appointee said she doesn't understand why it has taken so long for the Bush administration to explain its plan. She said she doesn't want to believe it's because there never was a plan for spending $700 billion in taxpayer money to rescue banks.
"I don't buy a winter coat without a plan," she said. "I can't imagine how someone could think they were going to repair a failing economy and undertake spending billions of dollars in taxpayer money without a plan."
Treasury Secretary Henry Paulson intended to use the money to buy risky loans from banks. Shortly after the funds were approved, however, he announced that $250 billion would instead be used to buy stock in U.S. banks.
"We've reversed directions more than once here, without any description of an overall strategy," said Warren, whose bipartisan panel is one of several entities monitoring the bailout. "It's not to say there's not one, but I don't think it should be such a well-hidden secret."
Treasury spokeswoman Brookly Mclaughlin had no comment.
Warren tempered any criticism of Congress, which placed few restrictions on the money. Such requirements were omitted, she said, because the Bush administration pressured Congress to approve the bill quickly.
ASSOCIATED PRESS
