Failing the Bailout
Lessons for Obama From Bush’s Failures on TARP
Without better oversight, the TARP bank bailout program will continue to fail, according to a report from a watchdog group. But U.S. PIRG, the Washington D.C. office of WISPIRG, expects today’s expected TARP reform announcements from the Obama Administration will include major improvements in oversight and accountability that will also benefit from continued use of the new U.S. PIRG TARP report card for evaluation. Pre-announcement news reports that Obama seeks “clarity” and “consistency” and “stress” evaluations of banks before receiving aid are encouraging and support the group’s recommendations.
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WISPIRG
Executive Summary
Based on the findings of this report, U.S. PIRG Education Fund recommends that reforms described to improve transparency and accountability under the TARP program be implemented immediately by Treasury or Congress as appropriate. In addition, U.S. PIRG recommends that policymakers use the metrics and Report Card described here as a way to identify and compare the status of the implementation of TARP reform programs in a way that can be easily communicated. Improving transparency and accountability within the program is an obvious goal to protect the taxpayer; improving transparency about the program will better inform both the taxpayer and policymakers. Of course, improving the TARP program is only a short term solution to our financial regulation problems. In a pending report of the Securing America’s Financial Future program of the U.S. PIRG Education Fund, we intend to discuss why that long-term solution should be based on the findings of the Congressional Oversight Panel’s Special Report on Regulatory Reform.
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Fixed for the Holidays
Fixed for the Holidays
