The special inspector general with oversight over bank bailout activity has issued his second report to Congress, and it is not pretty, according to the New York Times. Neil Barofsky criticized the Obama Administration for several deficiencies, including the lack of information that the plan requires banks to disclose. He suggests that the plan essentially risks a whole lot of mini, AIG-like fiascos.

He also thinks the government's vaunted PPIP plans are vulnerable to fraud, noting that "the Fed was not currently planning to examine the securities that it would finance, and would be relying instead on the evaluation by credit rating agencies that originally failed to spot the dangers of subprime mortgages." He finds that near-shocking.

Treasury Secretary Geithner will address these issues today at a hearing. These are observations that cannot be taken lightly. The issue here is a perception that the industry is running roughshod over the government after some initial setbacks. 

For more:
- here's the article

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