WASHINGTON — As the watchdog of the government's massive bailout of the financial sector, Neil M. 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 said that the White House has fallen short of its promises to run a more open government. Among other areas, the critics cite the president's conduct of the healthcare debate, which has included 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.
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 healthcare. C-SPAN would record every word, Obama said, while he and members of Congress, as well as representatives of healthcare industry, hashed out a plan to overhaul the nation's healthcare system.
The discussions have not played out that way. Obama has met repeatedly in the White House with congressional leaders to discuss healthcare strategy. No cameras or reporters have been allowed to cover the talks. The White House has announced deals with hospital and drug industry executives -- negotiated behind closed doors -- as part of its push to revamp healthcare.
"We think the record is mixed on transparency," said Melanie Sloan, executive director of Citizens for Responsibility and Ethics in Washington. "They've promised more than they've delivered, and we've been disappointed. But it's seven months in, it's early, and we hope they can get it right."
