WASHINGTON (AP) — The government's bailout of banks, auto makers, and insurers helped prevent a more severe economic crisis, but might have sowed the seeds of the next one, a congressional watchdog group said Wednesday in its final report.
The Congressional Oversight Panel said that the government's rescue fund may have prevented an economic depression by sending billions of dollars to companies crippled in financial crisis that erupted in 2008. But little has been done to aid to homeowners facing foreclosure or others far from Wall Street, it said.
"The good news is that America did not suffer another depression," panel Chairman Ted Kaufman said. However, Treasury's "programs for Main Street have been far less effective" than the cash injections that stabilized Wall Street banks during the worst financial crisis in generations, he said.
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