Financial Institutions and Markets
Video Message: Orice M. Williams
Orice M. Williams
Director of Financial Markets and Community
Investment
(202) 512-8678
The global economy and financial markets are coping with a crisis that started with a rise in foreclosures and defaults in the subprime mortgage market that quickly afflicted credit markets globally. The resulting fallout has been vast and far reaching; some of largest and most significant financial institutions in the United States have failed, been sold, or have come under the control of the federal government. Moreover, there has been unprecedented federal help given to the financial markets with the passage of the Emergency Economic Stabilization Act of 2008 and creation of the Troubled Asset Relief Program in an attempt to stabilize the financial system and restore the functioning of credit markets. The proper functioning of these markets is critical to the broader U. S. economy and indeed, to the global economy. It will be very important to monitor and evaluate to what extent the actions by Treasury, the Federal Reserve, FDIC and others will achieve the intended goals of reducing foreclosures, restoring stability in the credit and financial markets, and protecting taxpayers. GAO has key roles in this regard.
We have identified a number of challenges that the new administration and the Congress will have to immediately confront, including