ISSUE: How bank bailout dollars being used

OUR VIEW: Nation's leadership must ensure dollars not going for CEO bailouts

It appears people believe President-elect Barack Obama will make the changes needed to repair the American economy. An Asssociated Press-GfK poll released this week has 72 percent of people confident in Obama's abilities.

Forty-four percent of Republicans joined nearly all Democrats and most independents in expressing the belief.

One Republican not on the bandwagon, and consistently speaking out against aspects of the huge federal bailout of banks and other institutions, is S.C. Gov. Mark Sanford. The GOP leader has been out front in criticizing policies he says created the problem and in assailing the approach of Obama, Democrats -- and Republicans -- in doling out federal dollars.

This week Sanford spoke up again, calling on lawmakers, now that they have allocated dollars in the bailout, to do their jobs as overseers of how the money is used. It's a message with which most Americans, supporters of the money for the banks or not, will agree.

Calling the situation the "gaming of the nation's taxpayers," Sanford sent a letter to U.S. Treasury Secretary Henry Paulson urging the secretary to take whatever steps he can to prevent taxpayers being exposed to additional and unnecessary liability from the bailout.

"The federal government, and by extension taxpayers, are being gamed. I think it's dangerous over the long run the way that taxpayers are being sapped, and this dynamic is playing out in South Carolina," Sanford wrote.

Specifically, the governor cites a South Carolina situation: "The sooner-than-expected retirement of Carolina First CEO Mack Whittle. Some have surmised that Whittle's retirement date was moved up so that his bank could apply for federal bailout money while Whittle retained his 'golden parachute.' The estimated value of Whittle's retirement package is $18 million, a deal that would have been compromised if the bank had asked for a taxpayer bailout before Whittle left."

Sanford also states the Federal Reserve is putting $150 billion in AIG after an initial bailout attempt failed to stem massive losses, $27 billion more than previously extended. After an initial bailout with taxpayer money in September, AIG treated some staff to spa retreats in California ($440,000) and a hunting trip in England ($500,000).

Sanford notes The Wall Street Journal reported that some $40 billion is being paid to executives of banking giants that are getting bailout dollars.

That is not right. Leaders of the institutions that got the nation into the present financial mess should not be rewarded for failure, not by their companies and certainly not with taxpayer dollars.

To the governor: Keep pressing the point. As much as lawmakers took actions they believe necessary to rescue the American economy, they are obligated to oversee the process to protect the taxpayers' dollars.

And as to specific cases such as that of the Carolina First CEO, the federal government should investigate to know exactly how the money received from taxpayers will be used.

You must be logged in to comment.