TARP – Sold
Troubled Asset Relief Program aka TARP was sold to the American public under the initial assistance the government provided to American International Group, Inc. (AIG)–an organization with over 200 companies operating in over 130 countries and jurisdictions and $830 billion in assets–in September 2008 and the restructuring of that assistance in November 2008 and March 2009.
The unfolding crisis allegedly threatened the stability of the U.S. banking system and the solvency of a number of financial institutions, including AIG. In September 2008, downgrades of AIG’s credit rating prompted collateral calls by counter-parties and raised concerns that a rapid and disorderly failure of AIG would further destabilize the markets. As a result, the Board of Governors of the Federal Reserve System (Federal Reserve) authorized the Federal Reserve Bank of New York (FRBNY), in consultation with the Department of the Treasury (Treasury), to provide assistance to AIG.
A listing of capital purchases made in qualifying financial institutions (QFIs) by the Department of the Treasury’s (Treasury) Office of Financial Stability under the Capital Purchase Program (CPP). CPP is one of the programs Treasury created under its Troubled Asset Relief Program (TARP) authorities. CPP provides QFIs with additional capital through purchases of senior preferred stock and warrants.
In an effort to stop waste, abuse and fraud in government, the Government Accounting Office (GAO) an independent organization watchdog of government spending is asking for your help.
As billions of dollars are distributed under the American Recovery and Reinvestment Act, the U.S. Government Accountability Office (GAO) is urging private citizens, government workers, contractors, and others to report waste, fraud, abuse, or mismanagement of those funds to FraudNet. FraudNet is an e-mail, phone, and fax hotline that processes allegations about federal agencies and federally funded programs.
The GAO had preliminary comments about TARP as you can watch in this video.
In a letter they will send to Senate Banking Committee Chairman Christopher Dodd this afternoon, Reps. Ron Paul (R., Tex.) and Alan Grayson (D., Fla.) will ask that the Senate hold off on Federal Reserve Chairman Ben Bernanke’s confirmation hearing until the central bank releases more information about its rescues. (Read the full letter.)
Mr. Bernanke could face trouble when he returns to Congress in the weeks ahead to defend his policies in confirmation hearings. Mr. Paul has won broad support in the House for a bill that would subject the Fed to audits by Congress’s Government Accountability Office. Mr. Paul House Bill has over 300 sponsors as reported here.
The lawmakers offer a long list of disclosure demands, including a call for more information on which financial firms have received emergency Fed loans in the past year and transcripts of Federal Open Market Committee meetings up to June 2009. Transcripts are released with a five year league. The Fed has resisted calls for information about firms receiving its loans for fear it will stigmatize them in markets and make them and others reluctant to turn to the central bank in a time of crisis. See more here.
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