Oversight of the Troubled Assets Relief Program
Encyclopedia
The Emergency Economic Stabilization Act created the Troubled Assets Relief Program
to administer up to $700 billion. Several oversight mechanisms are established by the bill, including the Congressional Oversight Panel, the Special Inspector General for TARP (SIGTARP), the Financial Stability Oversight Board, and additional requirements for the Government Accountability Office (GAO) and the Congressional Budget Office (CBO).
The members of the board are:
The panel consists of five outside experts appointed as follows:
The first meeting of this board was held Wednesday, November 25, 2009, and elected Elizabeth Warren as the chairperson and Damon Silvers as deputy chairperson. As no assets have yet been purchased, (OFS
instead chose to provide $250 billion to banks through the Capital Purchase Program
) it is not clear whether the requirement to report after 30 days from "first asset purchase" has been violated.
On December 8, 2009, the government’s financial bailout program concluded in a year-end review that, despite flaws and lingering problems, the program “can be credited with stopping an economic panic.” Also on this date, Rep. Jeb Hensarling stepped down from the panel, submitting his letter of resignation. Hensarling was replaced by Mark McWatters, a Dallas lawyer and certified public accountant who has served as an advisor to Hensarling.
On October 1, 2010, Senator Ted Kaufman
of Delaware
was appointed by Majority Leader Reid to replace Warren on the panel, as Warren resigned to focus on her duties at the Consumer Financial Protection Bureau. Three days later, Kaufman was unanimously elected as the panel's second chairperson. Kaufman was succeeded in Congress by Senator Chris Coons on November 15, 2010, but he remains chairperson of the Congressional Oversight Panel as of late December 2010.
(director of the Government Accountability Office
) is required to monitor the performance of the program, and report findings to Congress every 60 days. The Comptroller General is also required to audit the program annually. The bill grants the Comptroller General access to all information, records, reports, data, etc. belonging to or in use by the program.
On December 2, 2008, GAO released their first report on the bailout. Neel Kashkari, the OFS chairman, said in a letter to GAO that the department agrees with the report's findings and most of its recommendations but questioned GAO's suggestion to require more reporting from banks, saying gathering specifics from individual banks might not be the best way to evaluate the program. House Speaker Nancy Pelosi called the report's findings "discouraging." and that the report shows the program "is not accountable to American taxpayers."
and confirmed by the Senate. The Special Inspector General's purpose is to monitor, audit and investigate the activities of the Treasury in the administration of the program, and report findings to Congress every quarter. Eric Thorson
is the Inspector General
of the US Department of the Treasury and currently is responsible for the oversight of the TARP but has expressed concerns about the difficulty of properly overseeing the complex program in addition to his regular responsibilities. Thorson called oversight of TARP a "mess" and later clarified this to say "The word 'mess' was a description of the difficulty my office would have in providing the proper level of oversight of the TARP while handling its growing workload, including conducting audits of certain failed banks and thrifts at the same time that efforts are underway to nominate a special inspector general." http://www.washingtonpost.com/wp-dyn/content/article/2008/11/20/AR2008112003484.html
The Special Inspector General, Neil Barofsky
, was confirmed by the Senate on December 8, 2008, and was sworn into office on December 15, 2008. Prior to assuming the position of Special Inspector General, Mr. Barofsky was a federal prosecutor in the United States Attorney’s Office for the Southern District of New York for more than eight years. Mr. Barofsky received the Attorney General's John Marshall Award for his work on the Refco matter. Mr. Barofsky also led the investigation that resulted in the indictment of the top 50 leaders of the Revolutionary Armed Forces of Colombia (FARC) on narcotics charges, a case described by the then Attorney General as the largest narcotics indictment filed in U.S. history.
Under the leadership of Barofsky, the Office of the Special Inspector General for the Troubled Asset Relief Program has quietly turned into a full-fledged financial law enforcement agency
. It has 45 investigators who are empowered to carry guns and badges, and 27 vehicles with sirens and lights spread out in its branch offices across the United States
. SIGTARP agents are empowered to make arrests. The agency is currently engaged in 142 ongoing criminal and civil investigations, and it has already recovered assets worth $151.8 million. By the summer of 2010, SIGTARP agents were participating in raids alongside other U.S. law enforcement agencies. They worked with FBI agents in a raid on Colonial Bank
in Orlando, Florida
in an investigation into possible TARP-related fraud.
- Exiting TARP and Unwinding Its Impact on the Financial Markets, 01/14/10, http://cop.senate.gov/reports/library/report-011410-cop.cfm
- Taking Stock: What Has the Troubled Asset Relief Program Achieved?, 12/09/09, http://cop.senate.gov/reports/library/report-120909-cop.cfm/
- Guarantees and Contingent Payments in TARP and Related Programs, 11/06/09, http://cop.senate.gov/reports/library/report-110609-cop.cfm/
- An Assessment of Foreclosure Mitigation Efforts After Six Months, 10/09/09, http://cop.senate.gov/reports/library/report-100909-cop.cfm/
- The Use of TARP Funds in Support and Reorganization of the Domestic Automotive Industry, 09/09/09, http://cop.senate.gov/reports/library/report-090909-cop.cfm/
- The Continued Risk of Troubled Assets, 08/11/09, http://cop.senate.gov/reports/library/report-081109-cop.cfm/
- Special Report on Farm Loan Restructuring, 07/21/09, http://cop.senate.gov/reports/library/report-072109-cop.cfm/
- TARP Repayments, Including the Repurchase of Stock Warrants, 07/10/09, http://cop.senate.gov/reports/library/report-071009-cop.cfm/
- Stress Testing and Shoring Up Bank Capital, 06/09/09, http://cop.senate.gov/reports/library/report-060909-cop.cfm/
- Reviving Lending to Small Businesses and Families and the Impact of the TALF, 05/07/09, http://cop.senate.gov/reports/library/report-050709-cop.cfm/
- Assessing Treasury’s Strategy: Six Months of TARP, 04/07/09, http://cop.senate.gov/reports/library/report-040709-cop.cfm/
- Foreclosure Crisis: Working Toward a Solution, 03/06/09, http://cop.senate.gov/reports/library/report-030609-cop.cfm/
- February Oversight Report: Valuing Treasury’s Acquisitions, 02/06/09, http://cop.senate.gov/reports/library/report-020609-cop.cfm/
- Special Report on Regulatory Reform, 01/29/09, http://cop.senate.gov/reports/library/report-012909-cop.cfm/
- Accountability for the Troubled Asset Relief Program, 01/09/09, http://cop.senate.gov/reports/library/report-010909-cop.cfm/
- Questions About the $700 Billion Emergency Economic Stabilization Funds, 12/10/08, http://cop.senate.gov/reports/library/report-121008-cop.cfm/
Main COP Reports Website: http://cop.senate.gov/reports/
- AUDIT: Additional Insight on Use of TARP Funds, 12/10/09, http://www.sigtarp.gov/reports/audit/2009/Additional_Insight_on_Use_of_Troubled_Asset_Relief_Program_Funds.pdf
- AUDIT: Factors Affecting Efforts to Limit Payments to AIG Counterparties, 11/17/09, http://www.sigtarp.gov/reports/audit/2009/Factors_Affecting_Efforts_to_Limit_Payments_to_AIG_Counterparties.pdf
- 4th Quarterly Report to Congress, 10/21/09, http://www.sigtarp.gov/reports/congress/2009/October2009_Quarterly_Report_to_Congress.pdf
- Additional Appendices to 4th Quarterly Report to Congress, 10/21/09, http://www.sigtarp.gov/reports/congress/2009/October2009_Quarterly_Report_to_Congress_Appendices.pdf
- AUDIT: Extent of Federal Agencies' Oversight of AIG Compensation Varied, and Important Challenges Remain, 10/14/09, http://www.sigtarp.gov/reports/audit/2009/Extent_of_Federal_Agencies%27_Oversight_of_AIG_Compensation_Varied_and_Important_Challenges_Remain_10_14_09.pdf
- AUDIT: Emergency Capital Injections Provided to Support the Viability of Bank of America, Other Major Banks, and the U.S. Financial System, 10/05/09, http://www.sigtarp.gov/reports/audit/2009/Emergency_Capital_Injections_Provided_to_Support_the_Viability_of_Bank_of_America..._100509.pdf
- AUDIT: Despite Evolving Rules on Executive Compensation, SIGTARP Survey Provides Insights on Compliance, 08/19/09, http://www.sigtarp.gov/reports/audit/2009/Despite%20Evolving%20Rules%20on%20Exec%20Comp..._8_19_09.pdf
- AUDIT: Opportunities to Strengthen Controls to Avoid Undue External Influence over Capital Purchase Program Decision Making, 08/06/09, http://www.sigtarp.gov/reports/audit/2009/Opportunities_to_Strengthen_Controls.pdf
- 3rd Quarterly Report to Congress, 07/21/09, http://www.sigtarp.gov/reports/congress/2009/July2009_Quarterly_Report_to_Congress.pdf
- Additional Appendices to 3rd Quarterly Report, 07/21/09, http://www.sigtarp.gov/reports/congress/2009/July2009_Quarterly_Report_to_Congress_Appendices.pdf
- AUDIT: Use of TARP Funds Audit, 07/20/09, http://www.sigtarp.gov/reports/audit/2009/SIGTARP_Survey_Demonstrates_That_Banks_Can_Provide_Meaningfu_%20Information_On_Their_Use_Of_TARP_Funds.pdf
- 2nd Quarterly Report to Congress, 04/21/09, http://www.sigtarp.gov/reports/congress/2009/April2009_Quarterly_Report_to_Congress.pdf
- Initial Report to Congress, 02/06/09, http://www.sigtarp.gov/reports/congress/2009/SIGTARP_Initial_Report_to_the_Congress.pdf
Main SIGTARP Reports Website: http://www.sigtarp.gov/reports.shtml
- TARP: The U.S. Government Role as Shareholder in AIG, Citigroup, Chrysler, and General Motors and Preliminary Views on its Investment Management Activities, 12/16/09, http://www.gao.gov/products/GAO-10-325T/
- AUDIT: Office of Financial Stability (TARP) Fiscal Year 2009 Financial Statements, 12/09/09, http://www.gao.gov/products/GAO-10-301/
- TARP: Continued Stewardship Needed as Treasury Develops Strategies for Monitoring and Divesting Financial Interests in Chrysler and GM, 11/02/09, http://www.gao.gov/products/GAO-10-151/
- TARP: One Year Later, Actions Are Needed to Address Remaining Transparency and Accountability Challenges, 10/08/09, http://www.gao.gov/products/GAO-10-16/
- TARP: Status of Government Assistance Provided to AIG, 09/21/09, http://www.gao.gov/products/GAO-09-975/
- TARP: Treasury Actions Needed to Make the Home Affordable Modification Program More Transparent and Accountable, 07/23/09, http://www.gao.gov/products/GAO-09-837/
- TARP: June 2009 Status of Efforts to Address Transparency and Accountability Issues, 06/17/09, http://www.gao.gov/products/GAO-09-658/
- TARP: March 2009 Status of Efforts to Address Transparency and Accountability Issues, 03/31/09, http://www.gao.gov/products/GAO-09-504/
- TARP: Status of Efforts to Address Transparency and Accountability Issues, 01/30/09, http://www.gao.gov/products/GAO-09-296/
- TARP: Additional Actions Needed to Better Ensure Integrity, Accountability, and Transparency, 12/02/08, http://www.gao.gov/products/GAO-09-161/
Main GAO Reports Website: http://www.gao.gov/docsearch/featured/financialmarketsandhousing.html
- TARP Exit Strategy, Sec. Geithner letter to Congress, 12/09/09, http://www.financialstability.gov/latest/pr_12092009.html
- TARP Monthly Report - December 2009, 01/11/10, http://www.financialstability.gov/docs/105CongressionalReports/December%2520105(a)_final_1-11-10.pdf
- TARP and Office of Financial Stability Agency Financial Statement for FY2009, 12/10/09, http://www.financialstability.gov/latest/tg_12092009.html
- TARP Warrant Disposition Report, 01/20/10, http://www.financialstability.gov/latest/pr_01202010.html
- Making Home Affordable Monthly Report - December 2009, 01/19/10, http://www.financialstability.gov/docs/report.pdf
- Small Business Financing Forum, 11/18/09, http://www.financialstability.gov/roadtostability/smallbusinesscommunity.html
- FSOB Quarter Ending 31 December 2009, http://www.financialstability.gov/docs/FSOB/FINSOB_Quarterly_Report%2520_123109.pdf
- FSOB Quarter Ending 30 September 2009, http://www.financialstability.gov/docs/FSOB/FINSOB%20Quarterly%20Report%20_093009.pdf
- FSOB Quarter Ending 30 June 2009, http://www.financialstability.gov/docs/FSOB/FINSOB-Qrtly-Rpt-063009.pdf
- FSOB Quarter Ending 31 March 2009, http://www.financialstability.gov/docs/FSOB/FINSOB-Qrtly-Rpt-033109.pdf
- FSOB Quarter Ending 31 December 2008, http://www.financialstability.gov/docs/FSOB/FINSOB-Qrtly-Rpt-123108.pdf
Main TARP Reports and Transactions: http://www.financialstability.gov/latest/reportsanddocs.html
- The Troubled Asset Relief Program: Report on Transactions Through December 31, 2008, http://www.cbo.gov/doc.cfm?index=9961
Additional CBO Reports Citing TARP: http://www.cbo.gov/search/sitesearch.cfm?criteria=TARP
- ProPublica's "Eye on the Bailout", http://bailout.propublica.org/
- Bailout Sleuth blog, http://bailoutsleuth.com/
- Huffington Post's Bailout page, http://www.huffingtonpost.com/news/bailout
- Google News' search of TARP and Bailouts, http://news.google.com/news?hl=en&&q=TARP%20or%20bank%20bailout
- New York Times' TARP page, http://topics.nytimes.com/top/reference/timestopics/subjects/c/credit_crisis/bailout_plan/index.html?scp=1-spot&sq=TARP&st=cse/
- Wall Street Journal's TARP page, http://topics.wsj.com/subject/t/TARP/4043/
A January 29, 2009 article from bloomberg.com stated, "Bloomberg News asked the Treasury Department Jan. 26 to disclose what securities it backed over the past two months in a second round of actions to prop up Bank of America Corp. and Citigroup Inc. Department spokeswoman Stephanie Cutter
said Jan. 27 she would seek an answer. None had been provided by the close of business yesterday."
A review of investor presentations and conference calls by executives of some two dozen US-based banks by the New York Times found that "few [banks] cited lending as a priority. An overwhelming majority saw the bailout program as a no-strings-attached windfall that could be used to pay down debt, acquire other businesses or invest for the future."
, chairperson of the Congressional Oversight Panel, told the Senate Banking Committee that during 2008, the federal government paid $254 billion for assets that were worth only $176 billion.
article titled, "Bailed Out Bank of America Sponsors Super Bowl Fun Fest" stated that Bank of America
sponsored a Super Bowl
event at a five star resort in Palm Beach
, which was described as "... a five day carnival-like affair... 850,000 square feet of sports games and interactive entertainment attractions for football fans..." Although the bank refused to answer ABC News' questions about the cost of the event, a confidential source told ABC that the cost was approximately $10 million.
was proposed as a mechanism for automating the data entry and processing of financial filings to aid in TARP oversight.
Troubled Assets Relief Program
The Troubled Asset Relief Program is a program of the United States government to purchase assets and equity from financial institutions to strengthen its financial sector that was signed into law by U.S. President George W. Bush on October 3, 2008...
to administer up to $700 billion. Several oversight mechanisms are established by the bill, including the Congressional Oversight Panel, the Special Inspector General for TARP (SIGTARP), the Financial Stability Oversight Board, and additional requirements for the Government Accountability Office (GAO) and the Congressional Budget Office (CBO).
Financial Stability Oversight Board (FSOB)
The Financial Stability Oversight Board is created to review and make recommendations regarding the Treasury's actions. Its purpose is to review the operation of TARP, to make recommendations to the Treasury for improvements, and to watch for fraud and misrepresentation. The FSOB also has the power to ensure that the Treasury follows policies in accordance with the Act and the economic interest of the U.S. It is to meet on a monthly basis and report to Congress and the Oversight Panel quarterly.The members of the board are:
- Chairman of the BoardChairman of the Federal ReserveThe Chairman of the Board of Governors of the Federal Reserve System is the head of the central banking system of the United States. Known colloquially as "Chairman of the Fed," or in market circles "Fed Chairman" or "Fed Chief"...
of the Federal ReserveFederal Reserve SystemThe Federal Reserve System is the central banking system of the United States. It was created on December 23, 1913 with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907...
(Currently Ben BernankeBen BernankeBen Shalom Bernanke is an American economist, and the current Chairman of the Federal Reserve, the central bank of the United States. During his tenure as Chairman, Bernanke has overseen the response of the Federal Reserve to late-2000s financial crisis....
) - SecretaryUnited States Secretary of the TreasuryThe Secretary of the Treasury of the United States is the head of the United States Department of the Treasury, which is concerned with financial and monetary matters, and, until 2003, also with some issues of national security and defense. This position in the Federal Government of the United...
of the TreasuryUnited States Department of the TreasuryThe Department of the Treasury is an executive department and the treasury of the United States federal government. It was established by an Act of Congress in 1789 to manage government revenue...
(Currently Timothy F. GeithnerTimothy F. GeithnerTimothy Franz Geithner is an American economist, central banker, and civil servant. He is the 75th and current United States Secretary of the Treasury, serving under President Barack Obama...
) - Director of the Federal Housing Finance AgencyFederal Housing Finance AgencyThe Federal Housing Finance Agency is an independent federal agency created as the successor regulatory agency resulting from the statutory merger of the Federal Housing Finance Board , the Office of Federal Housing Enterprise Oversight , and the U.S...
(Currently Edward J. DeMarco, Acting Director ) - Chairman of the Securities and Exchange Commission (Currently Mary Shapiro)
- SecretaryUnited States Secretary of Housing and Urban DevelopmentThe United States Secretary of Housing and Urban Development is the head of the United States Department of Housing and Urban Development, a member of the President's Cabinet, and thirteenth in the Presidential line of succession. The post was created with the formation of the Department of Housing...
of the Department of Housing and Urban DevelopmentUnited States Department of Housing and Urban DevelopmentThe United States Department of Housing and Urban Development, also known as HUD, is a Cabinet department in the Executive branch of the United States federal government...
(Currently Shaun DonovanShaun DonovanShaun L.S. Donovan is the United States Secretary of Housing and Urban Development, serving in the cabinet of President Barack Obama. Prior to this he headed the New York City Department of Housing Preservation and Development...
)
Congressional Oversight Panel (COP)
The "Congressional Oversight Panel" was mandated by Title 1, Section 125 of the TARP legislation as an "establishment in the legislative branch." The Congressional Oversight Panel is charged with the job of reviewing the state of the markets, current regulatory system, and the Treasury Department's management of the Troubled Asset Relief Program. The panel is required to report their findings to Congress every 30 days, counting from the first asset purchase made under the program. The panel must also submit a special report to Congress about regulatory reform on or before January 20, 2009. The Congressional Oversight Panel will cease to exist on December 31, 2009 unless renewed.The panel consists of five outside experts appointed as follows:
- One member chosen by the Speaker of the HouseSpeaker of the United States House of RepresentativesThe Speaker of the United States House of Representatives, or Speaker of the House, is the presiding officer of the United States House of Representatives...
(Nancy Pelosi selected Richard H. NeimanRichard H. NeimanRichard H. Neiman is the 43rd Superintendent of Banks for the State of New York. As such, he serves as the head of the New York State Banking Department...
on November 14) - One member chosen by the minority leaderParty leaders of the United States House of RepresentativesParty leaders of the United States House of Representatives are elected by their respective parties in a closed-door caucus by secret ballot and are also known as floor leaders. The U.S. House of Representatives does not officially use the term "Minority Leader", although the media frequently does...
of the House (John Boehner appointed Jeb HensarlingJeb HensarlingJeb Hensarling has been the Republican congressman representing Texas' 5th congressional district in the United States House of Representatives since 2003.-Early life:...
on November 19) - One member chosen by the majority leaderParty leaders of the United States SenateThe Senate Majority and Minority Leaders are two United States Senators who are elected by the party conferences that hold the majority and the minority respectively. These leaders serve as the chief Senate spokespeople for their parties and manage and schedule the legislative and executive...
of the Senate (Harry Reid appointed Elizabeth WarrenElizabeth WarrenElizabeth Warren is an American bankruptcy expert, policy advocate, Harvard Law School professor, and Democratic Party candidate in the 2012 United States Senate election in Massachusetts. She has written several academic and popular books concerning the American economy and personal finance. She...
on November 14) - One member chosen by the minority leaderParty leaders of the United States SenateThe Senate Majority and Minority Leaders are two United States Senators who are elected by the party conferences that hold the majority and the minority respectively. These leaders serve as the chief Senate spokespeople for their parties and manage and schedule the legislative and executive...
of the Senate (Mitch McConnell appointed John E. SununuJohn E. SununuJohn Edward Sununu is a former Republican United States Senator from New Hampshire, of Lebanese and Palestinian Christian ancestry. Sununu was the youngest member of the Senate for his entire six year term. He is the son of former New Hampshire Governor John H...
on December 17 after his original choice Judd GreggJudd GreggJudd Alan Gregg is a former Governor of New Hampshire and former United States Senator from New Hampshire, who served as chairman of the Senate Budget Committee. He is a member of the Republican Party and was a businessman and attorney in Nashua before entering politics...
had "stepped aside" December 1 ). - One member chosen by the Speaker of the House and the majority leader of the Senate, following consultation with the minority leaders of Congress (Damon SilversDamon SilversDamon Silvers is a lawyer and an associate general counsel for the AFL-CIO. Silvers led the AFL-CIO legal team that won severance payments for laid off Enron and WorldCom workers....
was appointed on November 14)
The first meeting of this board was held Wednesday, November 25, 2009, and elected Elizabeth Warren as the chairperson and Damon Silvers as deputy chairperson. As no assets have yet been purchased, (OFS
Office of Financial Stability
The Office of Financial Stability is a new office within the Office of Domestic Finance of the United States Treasury created by theEmergency Economic Stabilization Act of 2008 to operate the Troubled Assets Relief Program....
instead chose to provide $250 billion to banks through the Capital Purchase Program
Capital Purchase Program
The Capital Purchase Program or CPP is a preferred stock and equity warrant purchase program conducted by the US Treasury's Office of Financial Stability as part of Troubled Assets Relief Program...
) it is not clear whether the requirement to report after 30 days from "first asset purchase" has been violated.
On December 8, 2009, the government’s financial bailout program concluded in a year-end review that, despite flaws and lingering problems, the program “can be credited with stopping an economic panic.” Also on this date, Rep. Jeb Hensarling stepped down from the panel, submitting his letter of resignation. Hensarling was replaced by Mark McWatters, a Dallas lawyer and certified public accountant who has served as an advisor to Hensarling.
On October 1, 2010, Senator Ted Kaufman
Ted Kaufman
Edward E. "Ted" Kaufman is an American politician who served as a United States Senator from Delaware from 2009 to 2010. Since 2010, he has chaired the Congressional Oversight Panel in the United States federal government; he is the second person to hold that post, succeeding inaugural holder...
of Delaware
Delaware
Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. It is bordered to the south and west by Maryland, and to the north by Pennsylvania...
was appointed by Majority Leader Reid to replace Warren on the panel, as Warren resigned to focus on her duties at the Consumer Financial Protection Bureau. Three days later, Kaufman was unanimously elected as the panel's second chairperson. Kaufman was succeeded in Congress by Senator Chris Coons on November 15, 2010, but he remains chairperson of the Congressional Oversight Panel as of late December 2010.
Government Accountability Office (GAO)
The Comptroller GeneralComptroller General of the United States
The Comptroller General of the United States is the director of the Government Accountability Office , a legislative branch agency established by Congress in 1921 to ensure the fiscal and managerial accountability of the federal government...
(director of the Government Accountability Office
Government Accountability Office
The Government Accountability Office is the audit, evaluation, and investigative arm of the United States Congress. It is located in the legislative branch of the United States government.-History:...
) is required to monitor the performance of the program, and report findings to Congress every 60 days. The Comptroller General is also required to audit the program annually. The bill grants the Comptroller General access to all information, records, reports, data, etc. belonging to or in use by the program.
On December 2, 2008, GAO released their first report on the bailout. Neel Kashkari, the OFS chairman, said in a letter to GAO that the department agrees with the report's findings and most of its recommendations but questioned GAO's suggestion to require more reporting from banks, saying gathering specifics from individual banks might not be the best way to evaluate the program. House Speaker Nancy Pelosi called the report's findings "discouraging." and that the report shows the program "is not accountable to American taxpayers."
Special Inspector General for TARP (SIGTARP)
The EESA created the Office of the Special Inspector General for the Troubled Asset Relief Program, appointed by the PresidentPresident of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
and confirmed by the Senate. The Special Inspector General's purpose is to monitor, audit and investigate the activities of the Treasury in the administration of the program, and report findings to Congress every quarter. Eric Thorson
Eric Thorson
Eric M. Thorson is the Inspector General for the United States Treasury Department. He currently oversees the Troubled Asset Relief Program and has called oversight of this program "a mess".-Career:...
is the Inspector General
Inspector General
An Inspector General is an investigative official in a civil or military organization. The plural of the term is Inspectors General.-Bangladesh:...
of the US Department of the Treasury and currently is responsible for the oversight of the TARP but has expressed concerns about the difficulty of properly overseeing the complex program in addition to his regular responsibilities. Thorson called oversight of TARP a "mess" and later clarified this to say "The word 'mess' was a description of the difficulty my office would have in providing the proper level of oversight of the TARP while handling its growing workload, including conducting audits of certain failed banks and thrifts at the same time that efforts are underway to nominate a special inspector general." http://www.washingtonpost.com/wp-dyn/content/article/2008/11/20/AR2008112003484.html
The Special Inspector General, Neil Barofsky
Neil Barofsky
Neil M. Barofsky was the Special United States Treasury Department Inspector General to oversee the Troubled Assets Relief Program into 2011, but submitted his resignation in February...
, was confirmed by the Senate on December 8, 2008, and was sworn into office on December 15, 2008. Prior to assuming the position of Special Inspector General, Mr. Barofsky was a federal prosecutor in the United States Attorney’s Office for the Southern District of New York for more than eight years. Mr. Barofsky received the Attorney General's John Marshall Award for his work on the Refco matter. Mr. Barofsky also led the investigation that resulted in the indictment of the top 50 leaders of the Revolutionary Armed Forces of Colombia (FARC) on narcotics charges, a case described by the then Attorney General as the largest narcotics indictment filed in U.S. history.
Under the leadership of Barofsky, the Office of the Special Inspector General for the Troubled Asset Relief Program has quietly turned into a full-fledged financial law enforcement agency
Law enforcement agency
In North American English, a law enforcement agency is a government agency responsible for the enforcement of the laws.Outside North America, such organizations are called police services. In North America, some of these services are called police while others have other names In North American...
. It has 45 investigators who are empowered to carry guns and badges, and 27 vehicles with sirens and lights spread out in its branch offices across the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. SIGTARP agents are empowered to make arrests. The agency is currently engaged in 142 ongoing criminal and civil investigations, and it has already recovered assets worth $151.8 million. By the summer of 2010, SIGTARP agents were participating in raids alongside other U.S. law enforcement agencies. They worked with FBI agents in a raid on Colonial Bank
Colonial Bank
Colonial Bank, formerly a subsidiary of Colonial Bancgroup Inc., was headquartered in Montgomery, Alabama. Colonial Bank had 346 branches in the states of Alabama, Georgia, Florida, Nevada and Texas. Colonial's assets had grown from $166 million in 1981 to $26 billion. This growth can be attributed...
in Orlando, Florida
Orlando, Florida
Orlando is a city in the central region of the U.S. state of Florida. It is the county seat of Orange County, and the center of the Greater Orlando metropolitan area. According to the 2010 US Census, the city had a population of 238,300, making Orlando the 79th largest city in the United States...
in an investigation into possible TARP-related fraud.
COP Reports
- Commercial Real Estate Losses and the Risk to Financial Stability, 02/11/10, http://cop.senate.gov/reports/library/report-021110-cop.cfm/- Exiting TARP and Unwinding Its Impact on the Financial Markets, 01/14/10, http://cop.senate.gov/reports/library/report-011410-cop.cfm
- Taking Stock: What Has the Troubled Asset Relief Program Achieved?, 12/09/09, http://cop.senate.gov/reports/library/report-120909-cop.cfm/
- Guarantees and Contingent Payments in TARP and Related Programs, 11/06/09, http://cop.senate.gov/reports/library/report-110609-cop.cfm/
- An Assessment of Foreclosure Mitigation Efforts After Six Months, 10/09/09, http://cop.senate.gov/reports/library/report-100909-cop.cfm/
- The Use of TARP Funds in Support and Reorganization of the Domestic Automotive Industry, 09/09/09, http://cop.senate.gov/reports/library/report-090909-cop.cfm/
- The Continued Risk of Troubled Assets, 08/11/09, http://cop.senate.gov/reports/library/report-081109-cop.cfm/
- Special Report on Farm Loan Restructuring, 07/21/09, http://cop.senate.gov/reports/library/report-072109-cop.cfm/
- TARP Repayments, Including the Repurchase of Stock Warrants, 07/10/09, http://cop.senate.gov/reports/library/report-071009-cop.cfm/
- Stress Testing and Shoring Up Bank Capital, 06/09/09, http://cop.senate.gov/reports/library/report-060909-cop.cfm/
- Reviving Lending to Small Businesses and Families and the Impact of the TALF, 05/07/09, http://cop.senate.gov/reports/library/report-050709-cop.cfm/
- Assessing Treasury’s Strategy: Six Months of TARP, 04/07/09, http://cop.senate.gov/reports/library/report-040709-cop.cfm/
- Foreclosure Crisis: Working Toward a Solution, 03/06/09, http://cop.senate.gov/reports/library/report-030609-cop.cfm/
- February Oversight Report: Valuing Treasury’s Acquisitions, 02/06/09, http://cop.senate.gov/reports/library/report-020609-cop.cfm/
- Special Report on Regulatory Reform, 01/29/09, http://cop.senate.gov/reports/library/report-012909-cop.cfm/
- Accountability for the Troubled Asset Relief Program, 01/09/09, http://cop.senate.gov/reports/library/report-010909-cop.cfm/
- Questions About the $700 Billion Emergency Economic Stabilization Funds, 12/10/08, http://cop.senate.gov/reports/library/report-121008-cop.cfm/
Main COP Reports Website: http://cop.senate.gov/reports/
SIGTARP Reports
- Quarterly Report to Congress, 01/30/10, http://www.sigtarp.gov/reports/congress/2010/January2010_Quarterly_Report_to_Congress.pdf- AUDIT: Additional Insight on Use of TARP Funds, 12/10/09, http://www.sigtarp.gov/reports/audit/2009/Additional_Insight_on_Use_of_Troubled_Asset_Relief_Program_Funds.pdf
- AUDIT: Factors Affecting Efforts to Limit Payments to AIG Counterparties, 11/17/09, http://www.sigtarp.gov/reports/audit/2009/Factors_Affecting_Efforts_to_Limit_Payments_to_AIG_Counterparties.pdf
- 4th Quarterly Report to Congress, 10/21/09, http://www.sigtarp.gov/reports/congress/2009/October2009_Quarterly_Report_to_Congress.pdf
- Additional Appendices to 4th Quarterly Report to Congress, 10/21/09, http://www.sigtarp.gov/reports/congress/2009/October2009_Quarterly_Report_to_Congress_Appendices.pdf
- AUDIT: Extent of Federal Agencies' Oversight of AIG Compensation Varied, and Important Challenges Remain, 10/14/09, http://www.sigtarp.gov/reports/audit/2009/Extent_of_Federal_Agencies%27_Oversight_of_AIG_Compensation_Varied_and_Important_Challenges_Remain_10_14_09.pdf
- AUDIT: Emergency Capital Injections Provided to Support the Viability of Bank of America, Other Major Banks, and the U.S. Financial System, 10/05/09, http://www.sigtarp.gov/reports/audit/2009/Emergency_Capital_Injections_Provided_to_Support_the_Viability_of_Bank_of_America..._100509.pdf
- AUDIT: Despite Evolving Rules on Executive Compensation, SIGTARP Survey Provides Insights on Compliance, 08/19/09, http://www.sigtarp.gov/reports/audit/2009/Despite%20Evolving%20Rules%20on%20Exec%20Comp..._8_19_09.pdf
- AUDIT: Opportunities to Strengthen Controls to Avoid Undue External Influence over Capital Purchase Program Decision Making, 08/06/09, http://www.sigtarp.gov/reports/audit/2009/Opportunities_to_Strengthen_Controls.pdf
- 3rd Quarterly Report to Congress, 07/21/09, http://www.sigtarp.gov/reports/congress/2009/July2009_Quarterly_Report_to_Congress.pdf
- Additional Appendices to 3rd Quarterly Report, 07/21/09, http://www.sigtarp.gov/reports/congress/2009/July2009_Quarterly_Report_to_Congress_Appendices.pdf
- AUDIT: Use of TARP Funds Audit, 07/20/09, http://www.sigtarp.gov/reports/audit/2009/SIGTARP_Survey_Demonstrates_That_Banks_Can_Provide_Meaningfu_%20Information_On_Their_Use_Of_TARP_Funds.pdf
- 2nd Quarterly Report to Congress, 04/21/09, http://www.sigtarp.gov/reports/congress/2009/April2009_Quarterly_Report_to_Congress.pdf
- Initial Report to Congress, 02/06/09, http://www.sigtarp.gov/reports/congress/2009/SIGTARP_Initial_Report_to_the_Congress.pdf
Main SIGTARP Reports Website: http://www.sigtarp.gov/reports.shtml
GAO Reports
- TARP: Treasury Needs to Strengthen Its Decision-Making Process on the Term Asset-Backed Securities Loan Facility, 02/05/10, http://www.gao.gov/products/GAO-10-25/- TARP: The U.S. Government Role as Shareholder in AIG, Citigroup, Chrysler, and General Motors and Preliminary Views on its Investment Management Activities, 12/16/09, http://www.gao.gov/products/GAO-10-325T/
- AUDIT: Office of Financial Stability (TARP) Fiscal Year 2009 Financial Statements, 12/09/09, http://www.gao.gov/products/GAO-10-301/
- TARP: Continued Stewardship Needed as Treasury Develops Strategies for Monitoring and Divesting Financial Interests in Chrysler and GM, 11/02/09, http://www.gao.gov/products/GAO-10-151/
- TARP: One Year Later, Actions Are Needed to Address Remaining Transparency and Accountability Challenges, 10/08/09, http://www.gao.gov/products/GAO-10-16/
- TARP: Status of Government Assistance Provided to AIG, 09/21/09, http://www.gao.gov/products/GAO-09-975/
- TARP: Treasury Actions Needed to Make the Home Affordable Modification Program More Transparent and Accountable, 07/23/09, http://www.gao.gov/products/GAO-09-837/
- TARP: June 2009 Status of Efforts to Address Transparency and Accountability Issues, 06/17/09, http://www.gao.gov/products/GAO-09-658/
- TARP: March 2009 Status of Efforts to Address Transparency and Accountability Issues, 03/31/09, http://www.gao.gov/products/GAO-09-504/
- TARP: Status of Efforts to Address Transparency and Accountability Issues, 01/30/09, http://www.gao.gov/products/GAO-09-296/
- TARP: Additional Actions Needed to Better Ensure Integrity, Accountability, and Transparency, 12/02/08, http://www.gao.gov/products/GAO-09-161/
Main GAO Reports Website: http://www.gao.gov/docsearch/featured/financialmarketsandhousing.html
Treasury Department and Financial Stability Oversight Board (FSOB)
- Financial Stability Plan, One Year Later, 02/10/10, http://www.financialstability.gov/latest/pr_02102010.html- TARP Exit Strategy, Sec. Geithner letter to Congress, 12/09/09, http://www.financialstability.gov/latest/pr_12092009.html
- TARP Monthly Report - December 2009, 01/11/10, http://www.financialstability.gov/docs/105CongressionalReports/December%2520105(a)_final_1-11-10.pdf
- TARP and Office of Financial Stability Agency Financial Statement for FY2009, 12/10/09, http://www.financialstability.gov/latest/tg_12092009.html
- TARP Warrant Disposition Report, 01/20/10, http://www.financialstability.gov/latest/pr_01202010.html
- Making Home Affordable Monthly Report - December 2009, 01/19/10, http://www.financialstability.gov/docs/report.pdf
- Small Business Financing Forum, 11/18/09, http://www.financialstability.gov/roadtostability/smallbusinesscommunity.html
- FSOB Quarter Ending 31 December 2009, http://www.financialstability.gov/docs/FSOB/FINSOB_Quarterly_Report%2520_123109.pdf
- FSOB Quarter Ending 30 September 2009, http://www.financialstability.gov/docs/FSOB/FINSOB%20Quarterly%20Report%20_093009.pdf
- FSOB Quarter Ending 30 June 2009, http://www.financialstability.gov/docs/FSOB/FINSOB-Qrtly-Rpt-063009.pdf
- FSOB Quarter Ending 31 March 2009, http://www.financialstability.gov/docs/FSOB/FINSOB-Qrtly-Rpt-033109.pdf
- FSOB Quarter Ending 31 December 2008, http://www.financialstability.gov/docs/FSOB/FINSOB-Qrtly-Rpt-123108.pdf
Main TARP Reports and Transactions: http://www.financialstability.gov/latest/reportsanddocs.html
CBO Reports
- The Troubled Asset Relief Program: Report on Transactions Through June 17, 2009, http://www.cbo.gov/doc.cfm?index=10056- The Troubled Asset Relief Program: Report on Transactions Through December 31, 2008, http://www.cbo.gov/doc.cfm?index=9961
Additional CBO Reports Citing TARP: http://www.cbo.gov/search/sitesearch.cfm?criteria=TARP
Additional Resources on TARP Oversight
- House Financial Services Committee's TARP oversight reports page, http://financialservices.house.gov/TARP.html/- ProPublica's "Eye on the Bailout", http://bailout.propublica.org/
- Bailout Sleuth blog, http://bailoutsleuth.com/
- Huffington Post's Bailout page, http://www.huffingtonpost.com/news/bailout
- Google News' search of TARP and Bailouts, http://news.google.com/news?hl=en&&q=TARP%20or%20bank%20bailout
- New York Times' TARP page, http://topics.nytimes.com/top/reference/timestopics/subjects/c/credit_crisis/bailout_plan/index.html?scp=1-spot&sq=TARP&st=cse/
- Wall Street Journal's TARP page, http://topics.wsj.com/subject/t/TARP/4043/
Government officials overseeing bailout don't know how it's being spent
A December 31, 2008 Associated Press article stated, "Government officials overseeing a $700 billion bailout have acknowledged difficulties tracking the money and assessing the program's effectiveness."A January 29, 2009 article from bloomberg.com stated, "Bloomberg News asked the Treasury Department Jan. 26 to disclose what securities it backed over the past two months in a second round of actions to prop up Bank of America Corp. and Citigroup Inc. Department spokeswoman Stephanie Cutter
Stephanie Cutter
Stephanie Cutter is a Democratic Party operative. She serves as Deputy Senior Advisor to President Barack Obama.- Biography :Cutter was born in Taunton, Massachusetts and raised in nearby Raynham, Massachusetts...
said Jan. 27 she would seek an answer. None had been provided by the close of business yesterday."
Banks won't say how they are spending bailout money
A December 22, 2008 Associated Press article stated, "The Associated Press contacted 21 banks that received at least $1 billion in government money and asked four questions: How much has been spent? What was it spent on? How much is being held in savings, and what's the plan for the rest? None of the banks provided specific answers... Some banks said they simply didn't know where the money was going."A review of investor presentations and conference calls by executives of some two dozen US-based banks by the New York Times found that "few [banks] cited lending as a priority. An overwhelming majority saw the bailout program as a no-strings-attached windfall that could be used to pay down debt, acquire other businesses or invest for the future."
Federal government paid $254 billion for assets that were worth only $176 billion
On February 5, 2009, Elizabeth WarrenElizabeth Warren
Elizabeth Warren is an American bankruptcy expert, policy advocate, Harvard Law School professor, and Democratic Party candidate in the 2012 United States Senate election in Massachusetts. She has written several academic and popular books concerning the American economy and personal finance. She...
, chairperson of the Congressional Oversight Panel, told the Senate Banking Committee that during 2008, the federal government paid $254 billion for assets that were worth only $176 billion.
Bailout recipients spent $114 million on lobbying and campaign contributions in 2008
On February 4, 2009, it was reported that during 2008, the companies that received bailout money had spent $114 million on lobbying and campaign contributions. These companies received $295 billion in bailout money. Sheila Krumholz, executive director of The Center for Responsive Politics, said of this information, "Even in the best economic times, you won't find an investment with a greater payoff than what these companies have been getting."Bank of America throws $10 million Super Bowl party
A February 2, 2009 ABC NewsABC News
ABC News is the news gathering and broadcasting division of American broadcast television network ABC, a subsidiary of The Walt Disney Company...
article titled, "Bailed Out Bank of America Sponsors Super Bowl Fun Fest" stated that Bank of America
Bank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
sponsored a Super Bowl
Super Bowl
The Super Bowl is the championship game of the National Football League , the highest level of professional American football in the United States, culminating a season that begins in the late summer of the previous calendar year. The Super Bowl uses Roman numerals to identify each game, rather...
event at a five star resort in Palm Beach
Palm Beach, Florida
The Town of Palm Beach is an incorporated town in Palm Beach County, Florida, United States. The Intracoastal Waterway separates it from the neighboring cities of West Palm Beach and Lake Worth...
, which was described as "... a five day carnival-like affair... 850,000 square feet of sports games and interactive entertainment attractions for football fans..." Although the bank refused to answer ABC News' questions about the cost of the event, a confidential source told ABC that the cost was approximately $10 million.
XBRL Proposed as tool to aid in TARP Oversight
At the Domestic Policy Subcommittee hearing of the Oversight and Government Reform Committee on March 11, 2009, XBRLXBRL
XBRL is a freely available, market-driven, open, and global standard for exchanging business information. XBRL allows information modeling and the expression of semantic meaning commonly required in business reporting. XBRL is XML-based...
was proposed as a mechanism for automating the data entry and processing of financial filings to aid in TARP oversight.