Treasury Moves to Restrict Lobbyists From Influencing Bailout Program
Treasury Secretary Timothy F. Geithner issued new guidelines yesterday aimed at eliminating the influence of lobbyists on the $700 billion financial bailout program by restricting their contact with officials who are reviewing applications for money and deciding how to disburse it.
Treasury officials also will seek to limit political influence over the funds, saying they will use similar restrictions that forbid such influence in tax matters as a model. The department’s Office of Financial Stability will be required to certify to Congress that each government investment is based solely on objective criteria. As part of that effort, only banks recommended by their primary regulator will be eligible for capital investments.
“American taxpayers deserve to know that their money is spent in the most effective way to stabilize the financial system,” Geithner said in a statement yesterday. “Today’s actions reaffirm our commitment toward that goal.”