Troubled Asset Relief Program
September 16, 2015
In relation to the Troubled Asset Relief program (TARP), the Government Accountability Office (GAO) has made a total of 72 recommendations; 59 of which have been implemented and among the remaining ones, four have been partially implemented and three haven't been implemented at all. Of the non-implemented recommendations, due to the evolving nature of the programs, some were considered outdated and no longer applicable.
These recommendations are concerned particularly with two of TARP's programs: Capital Purchase Program (CPP), which supports certain U.S. financial institutions, and Making Home Affordable (MHA), which is a collection of housing programs designed to help homeowners avoid foreclosure.
- Of the recommendations that have not been implemented one suggests that the Treasury consider analyzing and reporting on remaining and former CPP participants separately.
- The other two are directed at the MHA and require that Treasury establish a standard process to better ensure that changes to TARP-funded MHA programs are based on comprehensive benefit-cost analyses.
To determine the implementation status, the GAO conducted a performance audit which assessed relevant documentation from Treasury, interviewed Treasury officials, and reviewed prior TARP reports.
The GAO continues to maintain that the Treasury should take action to fully implement the four partially implemented recommendations and three open recommendations.
Source: Harry Medina et al., "Troubled Asset Relief Program," Government Accountability Office, September 2015.
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