New US Treasury secretary publishes Tarp bailout contracts online
Tarp contracts granting financial aid to failing US banking and automotive firms to be made available online, says new Treasury secretary Tim Geithner
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.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Time to let some air out of the banking system?
Watchdogs worry about lowering standards, but policy-makers eye growth – they face a difficult dilemma
Competitiveness mandate for Esma faces uphill battle
European Parliament offers last chance to force Esma to take more nuanced approach
Europe expects FRTB to bite on XVA hedges
Risk Benchmarking: One-third of European dealers fear new market risk rules will have major effect on hedges
Burning ambition: will Europe join the US in setting fire to the rules?
As the US dismantles post-crisis regulations, some think Europe will follow in a bid to boost economic growth
Can US perpetual futures solve their identity crisis?
Market could fall under four different regulatory categories, with sharply diverging outcomes
Banks want AML data upgrade to complement US regulatory reform
FinCEN’s proposed overhaul sparks debate on whether it will lead to smarter or weaker supervision
Industry pushes EU exchanges to solve equity post-trade frictions
Deutsche Bank, Goldman Sachs and JP Morgan join calls for mandatory cash CCP interoperability
Regulatory clarity urged for CME’s single-stock futures
SEC short selling and market access rules may hamper clearing and broker participation