Homeowners

The Panel explicitly asked Treasury whether its current strategy is helping to reduce foreclosures. In its January oversight report, the Panel stated that Treasury has not answered the question of how, if at all, it has used the authority granted in the EESA to address the mortgage crisis.  The Panel also questioned whether Treasury has complied with Congress���s intent for it to develop a ���plan that seeks to maximize assistance for homeowners.���

Consumers and Students

The Panel has asked Treasury what it is doing to help the American family.  In particular, the Panel has asked:

• Whether Treasury���s actions have preserved access to consumer credit, including student loans and auto loans at reasonable rates, and
• Whether Treasury has taken action to ensure that public money could not be used to subsidize lending practices that are exploitive, predatory, or otherwise harmful to customers. 

Treasury has answered that its TARP programs to preserve access to consumer credit neither mandate nor encourage recipient banks to take consumer-friendly actions with respect to credit cards or other consumer loans.

Taxpayers

The Panel directly asked Treasury whether the public is receiving a fair deal.  Treasury responded that its investments are a good deal for the public for two reasons:

1. The government will own shares that Treasury expects to yield a reasonable return.
2. The government will also receive warrants for common shares in participating institutions, which will allow the taxpayer to benefit from any appreciation in the market value of the institution.  

Treasury also argued that it is not making TARP investments for short-term gains.  Rather, Treasury claims that, over time, the taxpayers will be protected by ensuring the stability of the financial system and by earning a return on these investments when they are eventually liquidated.

The Panel asked Treasury to compare the terms Treasury obtained for its investments and terms obtained by private parties investing in the same firms during the same period.  Treasury did not believe this comparison was relevant and made no comparison.