Misled? More like lie and committed fraud.With 98 banks and going closed and seized by FDIC, the truth unfoils..
WASHINGTON -- The credibility of the government's $700 billion financial rescue program was damaged by claims a year ago that all of the initial banks receiving support were healthy, a new report contends.
Special Inspector General Neil Barofsky generally found that the government had acted properly in October 2008 as it scrambled to implement the Troubled Asset Relief Program to avert the collapse of the U.S. financial system.
But the report said that then-Treasury Secretary Henry Paulson and other officials were wrong to contend at an Oct. 14 press conference that all nine institutions receiving the first round of support - $125 billion - were sound.
"These are healthy institutions, and they have taken this step for the good of the economy," Paulson had declared at the time.
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