"Lawmakers expressed concerns today about oversight of the Treasury Department's $700 billion Troubled Asset Relief Program, questioning whether the money spent so far has done much to stabilize credit markets or reduce foreclosures."
The article points out the following:
- The Treasury Department has already doled out $195 billion through TARP without a system in place to measure whether the money is actually helping relieve the credit crunch, or whether banks and other companies that receive the money are complying with restrictions on its use, according to a Government Accountability Office report to Congress.
- Instead of purchasing troubled assets as originally proposed, the Treasury Department has purchased $155 billion in preferred shares in 87 banks and financial institutions -- with no requirements that the banks track or report how they use the money -- Acting Comptroller General Gene Dodaro told members of the House Financial Services Committee at a hearing today.
- Rep. Paul Kanjorski, D-Pa., said the GAO report made clear "the dire need for improvement" in oversight of the program. The report was "full of examples of failed supervisions" and highlighted the fact that beneficiaries of the program are not required to boost lending or engage in loan modifications, he said.
- Some lawmakers want to see TARP money used directly to boost mortgage lending and help prevent foreclosures. If the Treasury Department doesn't go along, Congress has the power to cap the program at $350 billion -- all but $15 billion of which has already been allocated.
Where does that leave TARP and all of us with our livelihoods tied into the real estate industry? Not very encouraged.
Vested Title Inc., 648 Newark Avenue, P.O. Box 6453, Jersey City, NJ 07306
Tel 201-656-9220. Fax 201-656-4506. E-mail vti@vested.com
Sphere: Related Content
Posts
No comments:
Post a Comment