Increases in rates and fees charged by US banks that are receiving government bailout money is a concern to the bailouts watchdog panel, but no investigation is under way, a panel spokesman said on Monday. The Wall Street Journal reported that the Congressional Oversight Panel of the Troubled Asset Relief Program was investigating lending by TARP beneficiaries.
It singled out Bank of America and Citigroup. But Caleb Weaver, a senior adviser to the five-member panel, said it has no subpoena power and does not conduct formal investigations like those done by, for instance, the Treasury Departments special inspector general for the TARP, which is a separate entity. "Its an issue that the Congressional Oversight Panel is considering for a future report," said Weaver. The panel, chaired by Harvard Law School professor Elizabeth Warren, issues regular reports on bailout policy.