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Paulson Criticized for Misleading Public about Health of Banks

HeadlineOct 05, 2009

In other business news, the inspector general who oversees the government’s bailout of the banking system is criticizing the Treasury Department for making misleading public statements last fall and raising the possibility that it had unfairly disbursed money to the biggest banks. A new report by inspector general Neil Barofsky found that former Treasury Secretary Henry Paulson and other officials deliberately created the impression last year that banks receiving huge government cash infusions were healthier than was the case. But privately, officials worried about the health of several of the banks.

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