29 Jan 2009, David Benyon, Operational Risk & Regulation
WASHINGTON, DC - The US Treasury has announced it will make the investment details of aid provided by the Troubled Assets Relief Program (Tarp) available online, as part of efforts by the new US Presidency to improve transparency.
Newly installed President Barack Obama and new Treasury secretary Tim Geithner have both signalled a commitment to increase transparency and accountability for Tarp, which was passed on September 20.
Future Tarp transactions to US banks and other institutions - such as automotive firms - must now appear on the Treasury's website within 10 days. Already completed contracts will also be posted up "on a rolling basis" beginning immediately with the first nine contracts of the Capital Purchase Program (CPP), in addition to contracts closed under the Systemically Significant Failing Institutions (SSFI) program, the Targeted Investment Program (TIP) and the Automotive Industry Financing Program (AIFP).
"In the coming weeks, we will unveil a series of reforms to help stabilise the nation's financial system and get credit flowing again to families and businesses. Included in those reforms will be a commitment to increase transparency and oversight," said Geithner. "Today, we are taking a step towards increased transparency by committing to place all our Tarp investment agreements on the internet, so that taxpayers can see how their money is being spent and the terms these institutions must agree to before we invest taxpayer money."
Geithner has also met those involved with the outside and accounting and auditing of the financial aid transactions, including Gene Dodaro, acting comptroller general of the Government Accountability Office; Neil Barofsky, Tarp's special inspector general; and members of the Congressional Oversight Panel Elizabeth Warren, Damon Silvers, Richard Neiman, Jeb Hensarling and Senator John Sununu.
Currently viewable contracts include CPP beneficiaries Bank of America, Goldman Sachs, Morgan Stanley, Citigroup, JPMorgan Chase, Wells Fargo, New York Mellon, State Street and Merrill Lynch; TIP recipient Citigroup; the SSFI bailout of insurer AIG; and the AIFP bailouts for car producers GM, GMAC and Chrysler.
Contracts posted online may be viewed here.