SIGTARP Grabs Mandate and Runs With It

We were heartened to see today's statement from Sen. Charles Grassley (R-IA) (a.k.a. The Watchdog's Watchdog) attaching a letter from the Special Inspector General for the Troubled Asset Relief Program or TARP.

(Tangentially, is it only us or does it seem lately that everyone has gone from talking of “troubled” assets to “toxic” ones?  Obviously not a good sign.)

The Special IG, Neil Barofsky, reports that he is in the process of “sending a request to all entities that have received TARP money to date asking them to account for their use of TARP funds and to describe their efforts to comply with applicable executive compensation restrictions.”

Barofsky reports “some progress” in his efforts to pry more transparency out of Treasury regarding TARP operations, but says that the issue of what has been done with TARP money “remains almost entirely opaque.”

He says the lack of transparency can erode the public's trust, “potentially putting at risk the legitimacy of the entire program.”  It also could hamper his ability both to oversee compliance by the recipient banks with the terms of their agreements, and also to assess the effectiveness of the overall program: “Even a basic examination of whether various TARP programs are successfully furthering the goals of [the Emergency Economic Stabilization Act] EESA is made difficult if we do not know what was done with the money...”

-- Beverley Lumpkin

Comments

[axel]

Dear Readers, 1/26/2009

As I am an advocate of POGO, GAP and The NWC and take note and/or appreciative from the blog comment responses and including from Mr. Huffman that I mention the following for a limited review and consideration.

Even though I agree to some extent Mr. Huffman and to some extent with this/another superb and excellent Article from POGO that I mention the following for a limited review and consideration.

As it seemingly appears to a very limited extent on the (sometimes and somewhat) democracynow.org and almost completely nothing of the expected relevance on the Main Stream Media (example; CBS,NBC,ABC and FOX) that presumably we (the people) have a overwhelming knowledge of the fraud, waste, abuse and corruption within the recent decades of the and/or our Financial System(s) et all (Executive, Legislative and Judicial? ecetra) and continue to avoid even the first step towards 'FEDERAL EMPLOYEE WHISTLEBLOWER PROTECTION RESTORATION ACT' and as also and seemingly and presumably under the False Claims Act as are supported in the US Constitutional, Bill of Rights as a mandate which would at least allow for the identification of the problems and with the enivetable and hopefully the proper and forthright solution endeavors, thereof.

It appears clear that the past and future so-called bail-outs do nothing to identify and end the so-called fraud, waste, abuse and corruption ecetra and the derivitive etcetra markets that I enter the following suggestions for this so-called interim attempt to the seemingly (corrupt!!) bail-out ongoings and that should also be considered within any proper and forthright bail-out attempt for review and consideration is to immediately apply the following

1) Glass Stegal should immediately be reinststed,

2) With proper and forthright implementation a
1 Million Dollar full asset 1 Dollar Coverage (REASONABLE!! Treasury, FDIC and/or ecetra) should cover all (within reason!!) Bank and if and/or as in existence every Money Market Funds without any date implementation and restriction.

3) Every effort should be accomodated to adjudicate and/or adjust every so-called Mortgage and/or as may be required.

4) Along with the 'Federal Employee WPR Act' that will hopefully correct the fraud, waste, abuse and corruption in many of our world leading Industries that also a 'get real' approach will allow for the basic human needs of food, shelter, clothing and health care to be addressed and implemented to a 'get real' approach and endeavor resolve.

5) As our MSM News and presumably our US Executive and Legislative Branches of our US Government have for several weeks seemingly stated our Economy and Financials have cause for concern, I would again suggest in the interim that just 200 Billion Dollars of your Trillion Dollar allotments this last year alone could go directly to State, County and City Governments in the US to directly employee 22.2 Million Tax Paying !! Workers at 9 dollars an hour.

I have not re-read this blog comment reply and i hope POGO will allow me to withdraw and/or make any necessary and/or important corrections.

Thank you and all for your continued concern and endeavors towards our great Country and Democracy in these times of apparently and/or seemingly extraordinary concern and for our continuing endeavors towards Life, Liberty and the Pursuit of Happiness for All.

Thank you and all for your time and consideration.

Sincerely,
Axel

[Ken Huffman]

With due respect Ms. Pickering, perhaps the existing Treasury IG, or past Democrat and Republican appointed IG's overseeing a multitude of agencies and programs responsible for ensuring the health of the nations's financial system should have been asking questions awhile back, say fifteen yrs. ago. One might expect to see one of dozens of relevant IG's signaling an economic meltdown. Try finding even a piece of said flag in one of the IG's vaunted semi annual reports to congress. This credit fiasco has roots dating back to the Community Reinvestment Act of 1977. But IG's rarely fulfill their statutory mandate to examine the front end of govt. policy and operations. The SIGTARP will have no problem identifying weaknesses in Treasury's dispersment of hundreds of billions - this may help to insure better future controls. But you are grossly naive and uninformed if you think an IG is going to get an accurate and honest accounting of funds usage by slight of hand artists in the investment community.

[June Pickering]

Mr. Huffman's comment is ridiculous. Barofsky was appointed by Bush, not the Congress. Barofsky is trying to do a good job for the public. Perhaps, Bush should have appointed him BEFORE the money was given to the wastrel banking system!

[Ken Huffman]

Beverly,

Let me get this straight. POGO is heartened that a Special IG, appointed by a congress that left the public's hen house door wide open, is now asking the fox to report how many chickens he ate and where he buried the bones? Are you serious? What a hoot - WooHoo - Keep 'em coming.