Legislation Enhances SIGTARP’s Enforcement Powers

This story appeared in Bank Digest. The Special Inspector General for the Troubled Asset Relief Program Act of 2009, Public Law 111-15, was signed into law on April 24, 2009, by President Barack Obama.The Act is intended to clarify the law enforcement authority of the Special Inspector General and provide additional hiring flexibility for the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).

Specifically, the Act requires the SIGTARP to be treated the same as an office under Section 6(e)(3) of the Inspector General Act of 1978. The Act also provides the SIGTARP the authority to exercise temporary hiring authorities for a six month from the date of enactment. The SIGTARP is also granted the authority to hire federal annuitants without requiring that they offset their pension.

The Treasury Department is required under the Act to notify Congress of the reason for failing to follow any written recommendations made by the SIGTARP. It also requires cooperation among the various Inspectors General touched by the Troubled Asset Relief Program to avoid duplication of effort and to ensure comprehensive oversight of the TARP.

Finally, the SIGTARP is required to submit a report to Congress by Sept. 1, 2009, on the use of funds received by financial institutions. The general quarterly reporting requirements for the SIGTARP are also changed so that reports will be due 30 days after the end of each fiscal quarter.