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Daily Archives: December 10, 2008

New GAO Report: Troubled Asset Relief Program

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Troubled Asset Relief Program: Additional Actions Needed to Better Ensure Integrity, Accountability, and Transparency, GAO-09-266T, December 10, 2008.

  • “Treasury has taken a number of steps to try to stabilize the U.S. financial markets and banking system, including injecting billions of dollars into financial institutions. Although Treasury initially planned to buy mortgages and mortgage-related assets through TARP, Treasury shifted its focus to a preferred stock and warrant purchase program, known as the Capital Purchase Program (CPP). Treasury has provided more than $155 billion in capital to 87 institutions through CPP as of December 5, 2008. It has also established a Systemically Significant Failing Institution (SSFI) program, through which Treasury may invest in any financial instrument, including debt, equity, or warrants determined to be a troubled asset, and continues to explore other programs, including those focused on insurance, foreclosure mitigation, and consumer lending.[Footnote 4] As of December 5, 2008, Treasury had allocated a total of $335 billion of TARP funds and disbursed $195 billion to institutions under the various programs. While we recognize that TARP has existed for a short time and that a new program of such magnitude faces many challenges, especially in this current uncertain economic climate, we found that Treasury has yet to address a number of critical issues. These include determining how it will ensure that CPP is achieving its intended goals and monitoring compliance with limitations on executive compensation, dividend payments, and stock repurchases. Moreover, it has yet to formalize transition planning efforts given the upcoming shift to a new administration or to establish an effective management structure and an essential system of internal controls. In our report, we recommended that Treasury take nine actions to help ensure the program’s integrity, accountability, and transparency.”
  • Related postings on financial system

    • Solar Energy Industries Association Announces Policy Priorities for Obama Administration

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    News release: “The Solar Energy Industries Association (SEIA) today outlined the key policies that President-elect Obama and the Congressional leadership must address to expand the use of solar energy and help put over 1 million Americans back to work by 2011. SEIA released Solar Energy: A Blueprint for Job Creation and Economic Security, which recommends… Continue Reading

    Green Recovery: Investing in Clean and Efficient Energy To Create Jobs and Stimulate the Economy

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    Senate Committee on Energy and Natural Resources hearing on investments in clean energy and natural resources projects and programs to create green jobs and to stimulate the economy: Testimony of Bracken Hendricks, Senior Fellow, Center for American Progress Action Fund, December 10, 2008: “In this testimony, the Center for American Progress Action Fund offers some… Continue Reading

    Congressional Oversight Panel for the Bailout Releases First Report

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    Via Taxpayers for Common Sense: “The Congressional Oversight Panel for Economic Stabilization has released its first report on the $700 billion Emergency Economic Stabilization Act.” Hensarling Testifies Before House Financial Services Committee – [here] is a copy of the testimony (as prepared for delivery) by Congressman Jeb Hensarling, Chairman of the Republican Study Committee and… Continue Reading

    National Research Council Strongly Critical of Nanotech Risk Research Strategy

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    The National Academies: “A new report from the National Research Council finds serious weaknesses in the government’s plan for research on the potential health and environmental risks posed by nanomaterials, which are increasingly being used in consumer goods and industry. An effective national plan for identifying and managing potential risks is essential to the successful… Continue Reading

    Xerox Sponsors Free Internet Holiday Greeting Cards for U.S. Troops Abroad

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    “The mission of Let’s Say Thanks is to provide a way for individuals across the country to recognize U.S. troops stationed overseas. By submitting a message through this site you have the opportunity to send a free personalized postcard greeting to deployed servicemen and women. The postcards, depicting patriotic scenes and hometown images, were selected… Continue Reading