There probably isn't a good honest answer the banks can give unless they were really keeping track of what they were doing and what they were doing was proper and productive in the publics view.
I'm surprised the answer they gave hasn't had a more negative impact on the capital markets. This scenario is tetering on the brink of an unthinkable meltdown.
Here's to hoping things get better for everyone.

what the hell is going on????????

Because the money went to fund purchases of other institutions and bonuses.

You don't think that those who run the banks would actually use it for what they said they would, do you?

Time to demand action. Time to throw them all out on the street. Time to make these CEOs really feel what it is like to lose everything.

"Secrecy" is the screen behind which MASSIVE FRAUDS are committed. All of these corporations are attempting to "game" the bailout system.

This secrecy undermines any illusion of INTEGRITY of whatever Paulson does. Congress promised FULL DISCLOSURE and TRANSPARENCY to the distribution and use of the $700 BILLION Bailout funds . . . ANY FAILURE to provide this IS the responsibility of CONGRESS.

The American people should hold CONGRESS FULLY RESPONSIBLE for ANY FRAUDS that occur in any of these matters. (And they in turn, should hold responsible for any FRAUD and/or misuse of these funds)

DCW, Robert, Iridium, BH...

Thank you for taking the time to comment. This is not a controversial issue and BH is right.

When the biggest problem in Washington and Wall Street is lying, cheating, and stealing you would think they would recognize the importance of building back a little trust.

It is bad faith on their parts not to be completely transparent and forthcoming. This has to change!

The reason we will be given for not knowing where OUR taxpayer money went on the bailout: "You poor undereducated souls aren't smart enough to understand how this works".

Translated into Common English: Paulson is taking our money and giving it to his buddies on Wall Street to allow them to continue their lifestyles of conspicuous consumption while we all default on our mortgages and can not buy food.

Hold Paulson and Bush accountable for this!

The money is going to pay off the "bad bets" credit default swaps and derivative bets that went south - banks have been operating as hedge funds for years - if the public knew the truth they would be matching on Washington - tax payers are bailing out banks that made lousy bets - the bookies want their money.

This is just another example of how we are being manipulated every day.We have no say anymore, as the common citizen in this country. How many of us were in favor of this bailout? But we are now the ones paying for those grossly over paid CEO salaries, bonuses, etc. They are squeezing blood from a turnip, and the grip is killing us.

I hope Congress and our future presidents have learned a lesson about approving and appointing, respectively, people to the Secretary Treasury position with Wall Street backgrounds. For effective oversight, it's far better to appoint people from economic academia or even from the Fed who have no invested interests or significant stake in FI's. Avoid the Paulson's and Rubin's in the future for that sensitive and critical position. They will always be looked upon with suspicion. If I am aware of it, I am sure Congress and current/future presidents are.

Has anyone seen JPM derivative exposure?
Not pretty, but people keep hailing it like it is

Who will listen? Who cares?
Pertinent questions.

The members of Congress are not of mind to listen as they had a deluge of calls and emails against bailing out the banking industry. I was just one of many against it.
Rewarding bad judgment, incompetence and corruption at the taxpayers expense was borne of fear of a financial collapse. While I am sure that had government intervention been minimal, there would have been rough times in the banking industry world wide. That's the bad side. On the good side we would have been rid of those responsible for initiating this economic debacle. It is a debacle, for as they have been allowed to remain, they continue to compound the problem. Congress acted in haste, without the proper precautions and without any recourse against the bail out being abused. The first thing that the recipients did was have a party. Hurrah! It pays to contribute politically.
Moral: Those that are supposed to be the publics guardians and representatives often have need of a hearing aid.
That takes care of who is going to listen - obvious answer - not those in charge.

Who cares? Another story. Not the people. Shame on you. You became sh wrapped up in the presidential race that all of those in Congress that were responsible, are still there.

Yes, we do need change. However, I do not intend to hold my breath waiting.

It is amazing that this lameduck congress that promised us strict oversight has one woman and five support people to be in charge of the oversight of this bailout fraud and that her first complaint was that she can't get any imformation form Paulson or the banks about any of it!

it will end up in some thiefs pocket but the goverment is in on it all politicans wwill get there share,