Bush Signs 00B Bank Bailout with Minimal Oversight

President Bush signed the Emergency Economic Stabilization Act authorizing 00 billion in bank bailouts with initially minimal oversight. Treasury Secretary Henry Paulson, former Goldman Sachs CEO, originally sought exemption from ‘review by any court of law or administrative agency.’ The program shifted from its stated purpose of purchasing toxic assets to direct capital injections: Citigroup and Bank of America received 5 billion each, JPMorgan Chase and Wells Fargo 5 billion each, Goldman Sachs 0 billion. Despite taxpayer support, banks continued paying massive bonuses—Goldman gave 953 workers at least million each, JPMorgan gave 1,626 employees million-dollar bonuses. Paulson had 24+ conversations with Goldman CEO Lloyd Blankfein during the crisis, requiring ethics waivers. Goldman ultimately received 2.9 billion through the AIG bailout. TARP administrator Neel Kashkari was also a former Goldman VP. The Congressional Oversight Panel found ’no evidence’ TARP funds supported the housing market despite promises. Over 300 criminal convictions resulted from fraud, with Special Inspector General Neil Barofsky recovering 1 billion. The bailout highlighted conflicts of interest and the power of Wall Street over government policy.