GAO Report on Bailout Cites Oversight, Transition Concerns
The GAO issued their first official report today on the Treasury Department's $700 billion bailout plan, offering nine actions the Treasury should take to address "a number of critical issues."
This was the first of the GAO's reports on TARP to be given every 60 days, as mandated by the program. Earlier this month, the GAO released an initial report on the program that underscored its lack of oversight.
Today's report on the Troubled Asset Relief Program (TARP) addressed many of the same concerns as the initial one, including the fact that the Treasury has yet to formalize a system of oversight. Among the GAO's chief concerns:
Determining how [the Treasury Department] will ensure that CPP is achieving its intended goals and monitoring compliance with limitations on executive compensation, dividend payments, and stock repurchases. Moreover, it has yet to formalize transition planning efforts given the upcoming shift to a new administration or to establish an effective management structure and an essential system of internal controls. In our report, we recommended that Treasury take nine actions to help ensure the program's integrity, accountability, and transparency.
The GAO's next report will be issued by Jan. 31, 2009. Today's report, "Additional Actions Needed to Better Ensure Integrity, Accountability, and Transparency:"
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