Auditors Fault Treasury's Bailout Oversight

"This report proves the immediate need for oversight of the taxpayer dollars being expended right now as part of TARP," Senate Finance Committee Chairman Max Baucus (D., Mont.) said in a statement. "Because of one senator's anonymous block on this nomination, three weeks have been lost -- a key element of the TARP oversight program is not in place."

Republican Sen. Jim Bunning of Kentucky, a member of the Senate Banking Committee who opposed the bailout bill, has said he had "serious concerns" with Barofsky's nomination, though he has praised his experience. Bunning spokesman Mike Reynard would not comment on whether Bunning had placed the hold.

The audit came on the same day Detroit automakers renewed their plea for a rescue package with promises to dramatically restructure their operations. Noting that Congress had insisted on those conditions, Pelosi said financial institutions should be asked to do no less.

"The lack of any requirement by the administration on how financial institutions use these capital infusions is in clear contrast to Congress requiring detailed plans for long-term viability from the domestic auto companies," Pelosi said.