US Senate Panel OKs Softer TARP Disclosure Rules Than House
July 09 2009 - 7:10PM
Dow Jones News
A U.S. Senate spending panel Thursday approved tepid disclosure
requirements for the Treasury Department related to its efforts to
stabilize the financial markets, falling far short of tougher
conditions on companion legislation in the House.
The Senate Financial Services Appropriations Committee directed
the Treasury to develop a more effective strategy for communicating
its activities through the Troubled Asset Relief Program, but
didn't impose any specific steps the Treasury must take to do
so.
The House Appropriations panel, on the other hand, Tuesday
approved legislation that sets a deadline of Dec. 1 by which the
Treasury must inform lawmakers of a number of crucial aspects to
the TARP program and other financial-market interventions.
These include telling Congress whether it intends to make future
investments in banks, insurers, auto makers and other firms, how
much it ultimately expects the program to cost taxpayers, and when
any outstanding loans are likely to be repaid.
The House also asks for the same level of disclosure regarding
the Treasury bailouts of Fannie Mae (FNM) and Freddie Mac (FRE) and
any other market rescue activities it has been involved in.
The Senate language is included in a spending bill to fund the
Treasury and other government agencies in fiscal 2010.
It also instructs the Treasury to request more detailed
reporting from firms that have received cash infusions in order "to
ensure maximum transparency of the program."
Once the House and Senate approve their respective versions of
the legislation, lawmakers from both chambers will have to meet to
reach a final agreement.
-By Corey Boles, Dow Jones Newswires; 202-862-6601;
corey.boles@dowjones.com