Rep. Barney Frank, the head of the House Financial Services Committee, said Thursday the Obama administration is more trustworthy than the Bush administration to ensure that banks do not misuse money bank bailout funds.
In a nationally broadcast interview Frank denied Congress failed to put strings on loans to ensure that banks do not pay excessive executive bonuses or pay for company retreats, according to Associated Press.
We didn't give them the second half ($350 billion) with no strings attached. The Treasury Department has agreed to impose very strict rules and I think it would be a very big mistake to assume that the Obama administration is going to be as lax as the Bush administration, Frank said on CBS's The Early Show.
Frank also mentioned none of the money from the second part of TARP has been sent out yet, and he said the new administration will insist that a much larger chunk of it go toward reducing home foreclosures.
The interview by the House chairman came a day after leading bank CEOs came before his committee to defend their practices.
Eight chief executives assured lawmakers and told Congress that lending has increased and that bonuses for employees had been significantly reduced.