Dodd-Frank News Center

GAO recommends that Treasury improves oversight of servicers

This story appeared in Bank Digest.

A Government Accountability Office report concludes that the Treasury Department could better analyze data to improve oversight of servicers' practices. The GAO report, mandated by the Emergency Economic Stabilization Act of 2008, examines: (1) the status of TARP-funded housing programs; (2) Treasury's efforts to monitor and evaluate HAMP denial and redefault rates among servicers; and (3) the status of the implementation of GAO's prior recommendations related to TARP-funded housing programs.

The report recommends that Treasury conduct periodic evaluations to help explain differences among MHA servicers: (1) in the reasons they gave for denying applications for HAMP trial modifications; and (2) in HAMP loan modification redefault rates. This would help inform compliance reviews of individual servicers and help identify any needed program policy changes.

Latest property managers report issued

This story appeared in Bank Digest.

The Federal Housing Finance Agency has issued its latest Federal Property Manager's Report to Congress. The report is required by Section 110 of the Emergency Economic Stabilization Act of 2008. The FHFA is a designated Federal Property Manager in its role as conservator for Fannie Mae and Freddie Mac.

New Wolters Kluwer Law & Business White Paper Provides Retrospective on Controversial TARP

By Katalina Bianco, J.D., Wolters Kluwer Law & Business Banking Law Analyst.

Although authority for the Troubled Asset Relief Program (TARP) expired on Oct. 3, 2010, the pros and cons of the legislative response to the financial crisis continue to be debated. The controversial initiative was put into place as a key aspect of the Emergency Economic Stabilization Act of 2008 (EESA), signed into law by President George W. Bush on Oct. 3, 2008, exactly two years before authority for the program expired.  From its inception, TARP has symbolized what some have termed "the bailout legislation." The controversy inspired Treasury Secretary Timothy Geithner to issue a paper on the "myths" of TARP with the intent of defining the purpose of TARP and delineating its successes.

Download the complete white paper here.

Treasury Releases August Section 105(a) Report

This story appeared in Bank Digest

The Treasury Department has issued its Monthly 105(a) Report for August 2010. The report, which is required by the Emergency Economic Stabilization Act of 2008, discusses key developments under the Troubled Assets Relief Program; provides information regarding “,Where is TARP Money Going?;” and includes program updates.

Treasury Issues Status Report on SIGTARP Quarterly Audit Recommendations

This story appeared in Bank Digest.

The Treasury Department has issued a status report on its response to specific recommendations included in the Special Inspector General for the Troubled Asset Relief Program's (SIGTARP's) quarterly and audit reports, which appear in the SIGTARP recommendation chart included in the April 2010 Quarterly Report to Congress (see WSB No. 1699). The Treasury noted that its policies and programs currently address many of the issues raised in SIGTARP's recommendations, and, in many cases, the Treasury has taken specific actions to implement the recommendations. Where the Treasury believed that a particular recommendation would not help carry out its statutory duties under the Emergency Economic Stabilization Act, it has developed alternative ways to address the underlying concerns SIGTARP has raised and has explained the measures it is employing to do so to in its summary responses to SIGTARP and to Congress.

Treasury Responds to SIGTARP Audit Report

This story appeared in Bank Digest.

In a letter to the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the Treasury Department noted its disagreement with several statements and conclusions in SIGTARP's recent audit report entitled “Treasury's Monitoring of Compliance with TARP Requirements by Companies Receiving Exceptional Assistance.” While the Treasury agreed with SIGTARP's goal of improving how Treasury monitors compliance with TARP contractual requirements by exceptional assistance recipients, and with some elements of SIGTARP's various recommendations, it explained that SIGTARP's audit did not take into account broader issues, like the fact that the Obama administration inherited the TARP program and that seven companies received exceptional assistance from TARP under the previous administration. The Treasury also noted that its compliance efforts shifted as Congress revised the original requirements established by the Emergency Economic Stabilization Act of 2008 and replaced them with more comprehensive standards in the American Recovery and Reinvestment Act of 2009, which was passed on Feb. 17. 2010.

Geithner Updates Congress on Economic Recovery Efforts

This story appeared in Bank Digest.

The Treasury Department has released the text of a letter from Secretary Timothy Geithner to congressional leadership on the Emergency Economic Stabilization Act. The letter outlines the achievements of Obama administration policies and steps to be taken to extend the financial recovery to all Americans.

TARP Executive Compensation Rulings Issued

This story appeared in Bank Digest.

The Special Master for Executive Compensation has issued his 2010 “Covered Employees 26-100” Compensation Determinations for companies subject to the compensation restriction of the Emergency Economic Stabilization Act of 2008: AIG. Chrysler, Chrysler Financial, General Motors and GMAC.

Latest Section 105 Report Released

This story appeared in Bank Digest.

The Treasury Department has released its latest report required by Section 105(a) of the Emergency Economic Stabilization Act of 2008. The report discusses: key developments under the Troubled Assets Relief Program (TARP); how TARP money was spent; and updates on various programs.

Latest Section 105 Report Released

This story appeared in Bank Digest.

The Treasury Department has released its latest report required by Section 105(a) of the Emergency Economic Stabilization Act of 2008. The report discussed: key developments under the Troubled Assets Relief Program (TARP); how TARP money was spent; and updates on various programs.