A government audit says the Treasury Department needs tougher controls to oversee the $700 billion financial bailout package.
The Government Accountability Office's report to Congress on Tuesday says Treasury has no mechanism in place to track how the banking system has used the taxpayer money that had purchased $150 billion in bank stocks as of Nov. 25.
The 72-page audit is bound to feed congressional concerns that banks are not being properly monitored and are not using the money to increase lending.
Auditors specifically cited weaknesses in determining whether institutions that received bailout money are complying with limits on pay for their executives and dividend payments for investors.
Story courtesy of the Associated Press 2008.