Financial Crisis News Center

GAO Audits OFS TARP Statements

This story appeared in Bank Digest.

Under the Emergency Economic Stabilization Act, the Secretary of the Treasury was authorized to implement the Troubled Asset Relief Program (TARP) and established the Office of Financial Stability (OFS). EESA requires the annual preparation of financial statements for TARP, and further requires GAO to audit these statements. GAO audited OFS's fiscal year 2009 financial statements for TARP to determine whether, in all material respects, the financial statements were fairly stated, and OFS management maintained effective internal control over financial reporting. GAO also tested OFS's compliance with selected provisions of laws and regulations. In the GAO's opinion, the OFS's fiscal year 2009 financial statements for TARP are fairly presented in all material respects. The GAO also concluded that, although internal controls could be improved, the OFS maintained, in all material respects, effective internal control over financial reporting as of Sept. 30, 2009. The GAO found no reportable instances of noncompliance with the provisions of laws and regulations it tested.

Latest Property Managers Report Issued

This story appeared in Bank Digest.

The Federal Housing Finance Agency has issued its 11th Federal Property Manager’s Report to Congress. The report is required by Section 110 of the Emergency Economic Stabilization Act of 2008. The FHFA noted that preventing avoidable foreclosures through loan modifications and mortgage refinances is a top priority at the agency.

http://www.fhfa.gov/webfiles/15172/Fed.%20Prop%20Mgr%20Report.pdf

Dodd Calls for Extension of First Time Homebuyer Tax Credit

This story appeared in Bank Digest.

Sens. Christopher J. Dodd, D-Conn., and Johnny Isakson, R-Ga., have proposed extending the $8,000 first time homebuyer tax credit through the end of June 2010. Created by the economic stimulus package signed by President Obama in February 2009, the tax credit is set to expire on Nov. 30, 2009. “The credit is set to expire in five weeks,” said Dodd. “But the work of stabilizing the housing market won’t be done. We still need to use every tool at our disposal to try and fix this problem,” Dodd said.

http://banking.senate.gov/public/index.cfm?FuseAction=Newsroom.PressReleases&ContentRecord_id=7324eedc-d893-140b-efa0-4d73af6b4507

Registered Lobbyist Contact Disclosure Forms Released

By Serena Lynn, Editor, the CCH Federal Banking Law Reporter and Bank Digest.

In its efforts for transparency and accountability in the Troubled Assets Relief Program (TARP), the Treasury Department has released the following Registered Lobbyist Contact Disclosure Forms. The form is completed by executive branch employees who are contacted by registered lobbyists regarding EESA. The report includes a written description of each contact, the date and time of the contact and the names of the registered lobbyists and the employees with whom the contact took place.

 American Bankers Association — Letter to express support of the specific recommendations to help well-managed, viable banks address their capital needs.

American Bankers Association —Forwarding of a letter sent to Treasury Secretary Tim Geithner encouraging the Treasury to implement the Capital Assistance Program in a way that helps community banks.

FSOB Meeting Minutes and Report Released

This story appeared in Bank Digest.

The Treasury Department has released the minutes of the Financial Stability Oversight Board (FSOB) meeting held Aug. 31, 2009. In addition, the FSOB released its quarterly report for the third quarter 2009. The report is required by Section 104(g) of the Emergency Economic Stabilization Act of 2008 and covers the period from March 31, 2009, through the quarter ending June 30, 2009. The report: highlights the key oversight activities and administrative actions taken by the FSOB during the quarterly period; provides the FSOB's evaluation of the effects of the policies and programs implemented by the Treasury Department under the Troubled Assets Relief Program (TARP); and provides a more detailed description of the programs, policies and administrative actions taken, and financial commitments entered into, by the Treasury under the TARP.

Treasury Issues Monthly Section 105 Report

This story appeared in Bank Digest.

The Treasury Department has issued its latest progress report regarding the Troubled Assets Relief Program (TARP). The report, which is required by Section 105(a) of the Emergency Economic Stabilization Act of 2008, provides the latest developments on efforts to stabilize the financial system, current status of TARP investments and background information on all TARP programs.

http://financialstability.gov/docs/105CongressionalReports/105Report_10102009.pdf

Section 105 Congressional Report Released

This story appeared in Bank Digest.

The Treasury Department has issued its latest progress report regarding the Troubled Assets Relief Program (TARP). The report, which is required by Section 105(a) of the Emergency Economic Stabilization Act of 2008, provides the latest developments on efforts to stabilize the financial system, current status of TARP investments and background information on all TARP programs.

http://www.financialstability.gov/docs/105CongressionalReports/105areport_082009.pdf

Fed Reports on Credit and Lending Facilities

This story appeared in Bank Digest.

The Federal Reserve Board has issued a report under Section 129(b) of the Emergency Economic Stabilization Act of 2008 that provides an update concerning the lending facilities established by the Fed under Section 13(3) of the Federal Reserve Act. The report is the fifth periodic report filed by the Fed and covers all of the loans and lending facilities authorized by the agency since March 1, 2008, that are outstanding.

SIGTARP Issues Audit Reports

This story appeared in Bank Digest.

The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) has issued two new audit reports regarding implementation of the Troubled Asset Relief Program (TARP).

In one report, the Special Inspector General addressed how TARP recipients were complying with the executive compensation found in the Emergency Economic Stabilization Act of 2008. The report noted that since EESA’s enactment in October 2008, the legislation and implementing guidance on executive compensation for TARP recipients have been in flux but that most recipients that received funds under the Capital Purchase Program have made a concerted effort to comply with executive compensation limitations. However, the report noted that some recipients voiced concerns about new restrictions established by the American Recovery and Reinvestment Act (ARRA) and a need for further Treasury Department guidance or regulations to implement the ARRA limitations.

SIGTARP-09-003 at http://www.sigtarp.gov/reports/audit/2009/Despite%20Evolving%20Rules%20on%20Exec%20Comp..._8_19_09.pdf

Home Affordable Modification Program Agreement Released

This story appeared in Bank Digest.

The Treasury Department has posted the following Commitments to Purchase Financial Instrument and Servicer Participation Agreement for the Home Affordable Modification Program under the Emergency Economic Stabilization Act of 2008. The agreement is the first step servicers need to take to participate in the Home Affordable Modification Program for loans that are not owned, securitized or guaranteed by Fannie Mae or Freddie Mac.