TARP Control Panel calls for more transparency after emerging conflicts

Department of Treasury intensive use of TARP private entrepreneurs creates concerns about transparency and potential conflicts of interest. 

In its report of October, the private Congress program promulgated by President Bush two years ago said Business Review Oversight Committee operate 91 different contracts to 434 million from the emergency program although problématique.Le program has ended there are a few days and Treasury considers cost final about 50 billion dollars. Most important contracts are those supplied at Fannie Mae and Freddie Mac for administrative services and compliance for locking mitigation programs and they "raise particular concerns".

"Both Fannie Mae and Freddie Mac have a history of deep company mismanagement and the two companies have DOM: range .collapsed in 2008 this was for the intervention of the Government," said Panel. "The two companies have fallen short in aspects of their performance, recently made a major mistake in reporting on the defaults re mortgage data Fannie Mae and Freddie Mac has had difficulty in its assigned deadlines.»

Recommend members of the Panel to publish lists of subcontracts online and provide updates to regular, public performance contractors to improve transparence.Des problems arise because developers do not have to comply with requests under the freedom of information act and can hire outsourcing contracts that do not have to be disclosed, depending on the control panel.

"Important information is buried in the task orders are never published in any form and the Treasury Board publishes any useful information on the performance of contractors for the duration of the contract," said the Panel.

The potential conflict of interest is the responsibility of private profit goals and some made some Treasury also advise banks received TARP funds advice offices.

The Commission recommends that Treasury Board develop an independent conflict monitoring mechanism which makes it less dependent on the information of contractors and agents themselves.