Bill Would Require Treasury To Make Substantial TARP Disclosures
July 08 2009 - 7:43AM
Dow Jones News
The House Appropriations Committee included specific
instructions regarding the Treasury's various market rescue efforts
in legislation allocating funding for the department's activities
in fiscal 2010, which begins Oct.1.
By Dec. 1, the Treasury must make clear additionally what
profits or losses taxpayers can expect to incur as a result of the
investments made by the federal government in its efforts to
stabilize the financial markets.
The new requirements would apply to investments made through the
Troubled Asset Relief Program - the primary vehicle through which
the federal government has made investments since the economic
crisis began last fall - but also through its moves to take over
Fannie Mae (FNM) and Freddie Mac (FRE) and in "any other
investments of taxpayer funds aimed at ensuring economic and
financial stability."
The House bill directs the Treasury to report quarterly for the
next year on its efforts to implement recommendations from the
various bodies with oversight responsibility over its market
stabilization activities.
The legislation would appear to also seek information about the
lending activities carried out by the Federal Reserve, referring to
"other sources and authorities," but it doesn't mention the Fed by
name.
This has increasingly been a sore point with lawmakers who have
been largely unable to determine how much and where the Fed has
spent public money in attempts to shore up troubled financial
firms.
As reported two weeks ago, the spending bill also includes a
boost in funds for both the Securities and Exchange Commission and
the Commodities Future Trading Commission to enable them to
increase enforcement activities.
The House must now take up the spending bill, which it is likely
to do in the coming weeks. The Senate Appropriations Committee is
scheduled to consider its version of the bill Wednesday, although
details of its legislation haven't yet been released.
-By Corey Boles, Dow Jones Newswires; 202-862-6601;
corey.boles@dowjones.com