Press Releases
Brendan Daly/Nadeam Elshami
202-226-7616
12/02/2008
Pelosi: GAO Report Shows Treasury’s Implementation Of TARP is Not Transparent or Accountable
Washington, D.C. – Speaker Nancy Pelosi issued the following statement on a report issued this afternoon by the Government Accountability Office (GAO) on the Treasury Department’s implementation of the Troubled Asset Relief Program (TARP):
“The GAO’s discouraging report makes clear that the Treasury Department’s implementation of the TARP is insufficiently transparent and is not accountable to American taxpayers. As part of its flagship program to invest directly in financial institutions, the Treasury Department failed to impose conditions on the use of government funds, which were intended to help ease the credit crunch, undermining the intent of the Emergency Economic Stabilization Act and public confidence.
“Congress has repeatedly expressed concerns to the Treasury Department about the need to improve the TARP’s accountability and transparency. The GAO report reaffirms Congress’ view and calls on Treasury to take several critical steps to accomplish this goal, specifically by improving its communication with Congress and the general public.
“The lack of any requirement by the Administration on how financial institutions use these capital infusions is in clear contrast to Congress requiring detailed plans for long-term viability from the domestic auto companies. It is difficult to comprehend why the Bush Administration refuses to provide short term emergency auto industry loans through the TARP—when we know bankruptcy is not an option for the automakers or our economy.
“We welcome the GAO’s continued monitoring of the Treasury Department’s actions and look forward to the Congressional Oversight Board’s report on TARP implementation on December 10.
“Congress also remains concerned that the Administration has failed to implement a foreclosure mitigation plan to help millions of families stay in their homes as required under the financial rescue legislation. Preventing foreclosures will slow the nationwide drop in home values, protect neighborhoods, and is essential to address the root cause of our economic crisis.”