Skip to main content

Sign up for our newsletter.

Quality journalism. Progressive values. Direct to your inbox.

Dear Common Dreams Readers:
Corporations and billionaires have their own media. Shouldn't we? When you “follow the money” that funds our independent journalism, it all leads back to this: people like you. Our supporters are what allows us to produce journalism in the public interest that is beholden only to people, our planet, and the common good. Please support our Mid-Year Campaign so that we always have a newsroom for the people that is funded by the people. Thank you for your support. --Jon Queally, managing editor

Join the small group of generous readers who donate, keeping Common Dreams free for millions of people each year. Without your help, we won’t survive.

Treasury Secretary Steven Mnuchin arrives to Russell Building for the Senate Republican Policy luncheon to discuss a coronavirus relief package on Tuesday, March 17, 2020. (Photo: Tom Williams/CQ-Roll Call, Inc via Getty Images)

Critics Warn Democrats That Mere 'Oversight' of $500 Billion Corporate Bailout 'Much Too Weak' to Stop Trump Abuses

"You're absolutely dreaming if you think a nasty inspector general report... is gonna stop Donald Trump from misusing this $500 billion loan program."

Jake Johnson

Democratic congressional leaders expressed optimism Tuesday after the White House agreed in closed-door negotiations to allow independent "oversight" of a $500 billion corporate bailout program proposed by Senate Republicans in their $2 trillion coronavirus stimulus bill.

But progressive critics warned the oversight mechanisms that the White House reportedly agreed to—an independent inspector general and an oversight board—would not be nearly enough to prevent the Trump administration from abusing a massive program that Democratic lawmakers earlier this week characterized as a corporate "slush fund."

"Oversight isn't a substitute for real rules. You need concrete prohibitions against abusive activity. Without them, the best oversight panel in the world is basically a PR team for decency."
—Zach Carter, HuffPost

"You're absolutely dreaming if you think a nasty inspector general report... is gonna stop Donald Trump from misusing this $500 billion loan program," tweeted Farhad Manjoo, opinion columnist at the New York Times. "Are you kidding?"

Joe Cirincione, president of the Ploughshares Fund, called the oversight proposals "much too weak."

"Now it's a slush fund with reporting requirements," tweeted Cirincione. "Trump will blow right through any 'oversight.'"

While the details of the stimulus plan are still being hashed out behind the scenes, Senate Minority Leader Chuck Schumer (D-N.Y.) said in a speech on the Senate floor Tuesday that Democratic negotiators have "been pushing hard" for adequate transparency for any corporate bailout funds in order to ensure "these things are on the level."

"We would like very much, and believe we should have, a congressional oversight board," said Schumer, who said a final deal on the sprawling stimulus package could come as early as Tuesday afternoon.

House Speaker Nancy Pelosi (D-Calif.), who on Monday unveiled a $2.5 trillion stimulus proposal in the House, threw her support behind negotiations between Schumer and Treasury Secretary Steve Mnuchin on Tuesday.

The Washington Post reported Tuesday morning that Trump administration officials "agreed to allow an independent inspector general and an oversight board to scrutinize the lending decisions."

"The most recent precedent for this is the $700 billion Troubled Asset Relief Program that was created during the 2008 financial crisis," the Post noted. "To oversee TARP, Congress created an independent inspector general, a regulatory oversight board and a congressional oversight panel. Over the course of several years, investigations uncovered numerous cases of fraud at large and small companies as firms sought to obtain taxpayer money through various programs."

HuffPost senior reporter Zach Carter noted in a series of tweets Tuesday that while TARP oversight teams did great work exposing misuse of taxpayer funds during the financial crisis, "the abuse continued" nonetheless.

"You can't do a big bailout without oversight," Carter wrote. "Somebody has to enforce the rules. But oversight isn't a substitute for real rules. You need concrete prohibitions against abusive activity. Without them, the best oversight panel in the world is basically a PR team for decency."

Zephyr Teachout, a professor at the Fordham University School of Law and anti-corruption expert, cautioned Democrats against accepting toothless oversight requirements that do nothing to prevent corporate or government malfeasance.

The $500 billion program—officially called the "Exchange Stabilization Fund"—has been one of the key sticking points in negotiations over Senate Republicans' stimulus measure, which failed two consecutive procedural votes Sunday and Monday as Democrats held the line to stop the bill from advancing.

The original legislation would have handed Mnuchin—a former Goldman Sachs executive—sweeping authority over the program with little to no oversight. The language of the bill would have allowed Mnuchin to withhold from Congress the names of companies that receive federal bailout money and how much they receive for up to six months.

Asked about the lack of oversight for the proposed fund during a press briefing Monday evening, President Donald Trump said, "I'll be the oversight."

"We're going to make good deals," said Trump, who has refused to vow that his own companies will not benefit from the corporate bailout funds.

Jeff Hauser, director of the Revolving Door Project, asked in a tweet Tuesday why congressional Democrats would give the Trump White House any control over such an enormous bailout fund.

"If Trump's superpower is shamelessness," Hauser wrote, "why is there a bailout with any executive branch discretion?"

"Trump's team violates lawful requests for information constantly, including Mnuchin on Trump's tax returns," Hauser added. "Trusting Mnuchin to share information with oversight suggests Democratic leadership never heard the story of the boy who cried wolf."

Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.

Just a few days left in our crucial Mid-Year Campaign and we might not make it without your help.
Who funds our independent journalism? Readers like you who believe in our mission: To inform. To inspire. To ignite change for the common good. No corporate advertisers. No billionaire founder. Our non-partisan, nonprofit media model has only one source of revenue: The people who read and value this work and our mission. That's it.
And the model is simple: If everyone just gives whatever amount they can afford and think is reasonable—$3, $9, $29, or more—we can continue. If not enough do, we go dark.

All the small gifts add up to something otherwise impossible. Please join us today. Donate to Common Dreams. This is crunch time. We need you now.

'Horrific': 50 Migrants Found Dead in Abandoned Trailer Truck in Texas

"We need to end Title 42 and fix our broken immigration system so these unimaginable tragedies stop happening," said Rep. Chuy García. "People fleeing violence and poverty deserve a chance at a better life."

Jake Johnson ·

Harris Says White House Not 'Discussing' Use of Federal Land for Abortion Care

Sen. Elizabeth Warren and Rep. Alexandria Ocasio-Cortez are among the Democratic lawmakers who have expressed support for the idea as GOP-controlled states move to outlaw abortion.

Jake Johnson ·

Abortion Rights Defenders Applaud Judge's Block on Utah 'Trigger Ban'

"Today is a win, but it is only the first step in what will undoubtedly be a long and difficult fight," said one pro-choice advocate.

Brett Wilkins ·

Scores Feared Dead and Wounded as Russian Missiles Hit Ukraine Shopping Center

"People just burned alive," said Ukraine's interior minister, while the head of the Poltava region stated that "it is too early to talk about the final number of the killed."

Brett Wilkins ·

Biodiversity Risks Could Persist for Decades After Global Temperature Peak

One study co-author said the findings "should act as a wake-up call that delaying emissions cuts will mean a temperature overshoot that comes at an astronomical cost to nature and humans that unproven negative emission technologies cannot simply reverse."

Jessica Corbett ·

Common Dreams Logo