Companies Predict Bailout-Related Increase in Whistleblower Lawsuits
The Obama administration is asking too much of corporate America in terms of transparency, setting it up for more whistleblower lawsuits and more regulation.
That's what a new online poll of more than 1,500 executives, released on Monday, concluded, as more than half of the respondents claimed that it's impossible to meet the transparency demands required in exchange for bailout funds.
The poll was conducted during a March webcast sponsored by Deloitte Financial Advisory Services, which questioned executives about the strings attached to receiving Financial Stimulus Bill/Troubled Assets Relief Program (TARP) funding -- among them being more open about how bailout money is actually used, and why it's needed.
The poll sensed both fear and confusion among executives, finding:
• 58.2 percent said the level of transparency the Obama administration promises to attach to bailout spending is not possible.
• 80 percent indicated that the emphasis on transparency and accountability in government spending will translate into wider regulations for all businesses.
• 79.8 percent of respondents admitted they were unfamiliar with the False Claims Act, which empowers individuals to "blow the whistle" on companies that defraud the government and receive a "finders fee" if the government collects fines or retribution. (more)
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