WASHINGTON - — WASHINGTON - - As the watchdog of the government's huge bailout of the financial sector, Neil Barofsky had a simple question: What had the nation's banks done with all their bailout money?
Can't be answered, said the Treasury Department, because of the way banks move money internally. The department declined to put the question to the banks.
And so Barofsky started asking financial institutions himself, getting answers from more than 300 that had received federal bailout money and learning to what extent they had used the money to increase their lending, buy competitors or build their cash reserves.
The banking survey, and the refusal of Treasury officials to conduct it themselves, were revealed as Barofsky issued a stinging report Monday that complained of a lack of transparency in the Obama administration's management of the giant financial services bailout program.
The report came as critics of the administration say that the White House has fallen short of its promises to run a more open government than had other administrations. Among other areas, the critics cite the president's conduct of the health care debate, which has including closed-door White House meetings with powerful interest groups.
"You can't ask the basic questions or have a debate about the fundamental policy questions without information," Barofsky said in an interview.
"We fundamentally disagree with the Treasury Department on the importance of transparency," he said.
Increased transparency was a campaign pledge Obama made at every turn during the election campaign. As president, he said, he would invite television cameras into the negotiating sessions over health care. C-SPAN would record every word, Obama said, while he and members of Congress, as well as representatives of the health care industry, hashed out a plan to overhaul the nation's health care system.
The discussions have not played out that way. Obama has met repeatedly in the White House with congressional leaders to discuss health care strategy. No cameras, or reporters, have been allowed to cover the talks. The White House has announced deals, negotiated behind closed doors, with hospital and drug industry executives as part of its push to revamp health care.
A C-SPAN spokesman said Monday the network had covered an Obama administration health care forum on March 5 that was open to the entire press corps, and another one Monday - and that was it.
