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TARP overseer to audit GM post-IPO

Tuesday, September 21, 2010 - 05:15

Sept 21 - Special Inspector General Neil Barofsky expects the TARP investigations to continue to yield high profile results and is looking to launch an audit into GM after its IPO launches.

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was put the cardinals. I think that there are aspects of the TARP . There -- very successful for example. Of the initial statement back in October 2008. And the commitment to provide 125 billion dollars Armageddon. On the flip side some of the other goals of the TARP program clearly have not been so for example. That same day they announced -- intention that the TARP would help stimulate an increase lending that didn't happen. That's the act east of emergency economic stabilization act contemplated preserving homeownership and you really ramping up -- well more people that ticket into. Can escape hatch writes how that's going -- you findings of more and mole. Instances of cruel -- I think unfortunately it's it it's going they've participated in fraud. In -- Attempting to receive -- actually receiving TARP funds and more kind of sums of money between here and generals and of these entities investigators. We have cases of the things that's as alleged to try to steal 553 million dollars of TARP funds which we stopped. You can see similar cases like that on investigations that. And we're gonna continue to be providing transparency. and announced ever. We've done an investment doing an investigation into the Federal Reserve . Under certain documents we asked for that we did not receive and that is ongoing but I will say that that does it -- part to be an isolated incident. Generally speaking the Federal Reserve and treasury had been responsive and receptive and and it gives us the necessary access. Greg thanks very much thank you. Yeah Troubled Asset Relief Program is Tom Wilson comes applies to -- is -- alleged during the depths of the financial crisis. Skinheads the top program as a special inspector general and joins us now the Reuters Washington summit mr. Ross thanks very much for joining us my pleasure. I'm looking back on Tom a lot of money thrown together in a bit of a hurry you're looking at you how do you value. Was it. As good as could be expected as effective as could be expected to what do you think there are some really some major flaws in the way it was put the cardinals. I think that there are aspects of the TARP . There -- very successful for example. Of the initial statement back in October 2008. And the commitment to provide 125 billion dollars of the top nine banks. -- Hank Paulson sat next stood up next to Ben Bernanke -- there -- we will stand by these financial institutions. We believe was very important bringing us back from the precipice. It helped install confidence in the market confidence among the institutions is counter parties it was a key part I think you need the ultimate recovery and preventing. Potential financial Armageddon. On the flip side some of the other goals of the TARP program clearly have not been so for example. That same day they announced -- intention that the TARP would help stimulate an increase lending that didn't happen. That's the act east of emergency economic stabilization act contemplated preserving homeownership and preserving jobs. Again be the program so are its own short in those areas so if you grating you look great would you be here. I'd I'd like to give the grades I would say and an -- for preventing. Armageddon. And an incomplete on the other two. But of course even those successes have come with some cost. Including financial costs of potential tens of billions of dollars taxpayer close costs -- you know increased moral hazard and other issues shall. What about that that the crime that's based on if you really ramping up -- well more people that ticket into. Can escape hatch writes how that's going -- you findings of more and mole. Instances of cruel -- I think unfortunately it's it it's going very well I -- from an aspect of that we're seeing an increase in the number of cases. We have more than 120 ongoing investigations. And I think it's there there are pockets of activities. But we're seeing potential crime from from coast to coast. We've already charged -- disputed charges in the number of cases a number of bank CEOs and encounters with. Eight CEOs slash presence dash owners of companies have been criminally charged her or civilly charged with fraud. And I just see those numbers going up a look at our portfolios of existing investigations. And you see financial institutions all over the country of all different sizes -- very strong addition that they've participated in fraud. In -- Attempting to receive -- actually receiving TARP funds and more kind of sums of money between here and generals and of these entities investigators. We have cases of the banks that go from hundreds of thousands of dollars to hundreds of millions of dollars and up. So it really is it reflects the the full array of of banks that applied -- department. So is this going to be the next three year old too this is really going to be way you'll going to be making headlines mean. I mean I think our investigations are going to continue to yield some high profile results earlier this year we charge you spin chart of -- Marcus who is involved among other things that's as alleged to try to steal 553 million dollars of TARP funds which we stopped. You can see similar cases like that on investigations that. And we're gonna continue to be providing transparency. For our -- include issue reports that shine light some of the darker areas of this program shall. Finally just as to whether -- cares who's a big deal what kind of concerns you have about and -- ensure that taxpayers' -- but protected. Well senator Grassley asked us to initiate an audit of the GM IPO in other words to look -- the decision making process that led to that. And we fully intend to fulfill that request and and that's what we'll do who will wait until after they've yet it was complete. Then we'll go and look back and look at the decision making process and that's that's how treasury or whether they took the necessary steps to assure -- good return for the the American taxpayer. Just in terms of these investigations and you dating -- treasury and the federal timing getting documents off in the eighties and happy with -- the level of cooperation and openness that you get from him from them. Generally speaking it's it's gone pretty well we have one incident which. What we're doing the audit of AIG counterparts that the government's decision to pay -- counter parties -- cents on the dollar for Parsons -- We we did have some problems and announced ever. We've done an investment doing an investigation into the Federal Reserve . Under certain documents we asked for that we did not receive and that is ongoing but I will say that that does it -- part to be an isolated incident. Generally speaking the Federal Reserve and treasury had been responsive and receptive and and it gives us the necessary access. Greg thanks very much thank you. Yeah over a -- top special inspector general. On Sunday. And this is.

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TARP overseer to audit GM post-IPO

Tuesday, September 21, 2010 - 05:15