Treasury unveils bailout lobbying restrictions

The Treasury Department on Tuesday unveiled restrictions
to curb lobbying by firms receiving help from the $700 billion financial
bailout.

Banks and other institutions receiving federal bailout money spent heavily to
lobby last year as the financial crisis spread through the economy. The new
restrictions are meant to “prevent lobbyist influence” and “restrict contacts
with lobbyists” as the bailout funds are allocated.

{mosads}“American taxpayers deserve to know that their money is spent in the most
effective way to stabilize the financial system. Today’s actions reaffirm our
commitment toward that goal,” said Treasury Secretary Tim Geithner, who was
confirmed by the Senate on Monday evening.

The new lobbying restrictions are one of the first acts
Geithner has put in place as President Obama’s administration works to craft a
plan to spend the rest of the funds from the Troubled Asset Relief Program
(TARP).

The Senate before Inauguration Day cleared the way for the new president to
access the remaining $350 billion in funds, and the Obama administration has
said it intends to use at least $50 billion for a “sweeping” effort to reduce
home foreclosures.

The new lobbying restrictions also aim to establish a more transparent process
to award TARP funds to banks and other financial institutions. Treasury will
publish a description of how each institution was awarded money.