Conflicts of Interest in TARP: Ya Think?

TPM Muckraker reports about possible conflicts of inflict in TARP administration. Imagine!

Highlights:

The department has hired outside private contractors to administer parts of the bailout program, notes GAO.

In their responses to Treasury's requirements, six of the eight service providers selected as of November 25, 2008, identified potential or actual sources of conflict. According to our review, the identified conflicts generally involve organizational conflicts of interest, though some also involve personal conflicts of interest:

Five contractors indicated that they either already had clients or could have clients who were receiving TARP assistance.

• One contractor indicated that a potential conflict of interest would arise if it received information proprietary to multiple clients with competing investment interests.

• One company identified conflicts regarding troubled assets owned either directly by the company or by clients that were eligible for assistance under TARP.

How can you expect the most Machiavellian of all business people NOT to be above Caesar's wife? You can't and the American people can only expect BOHICA.

Good trading and great risk management to all.

Educational use only. Never intended as investment advice.