Those potential whistleblowers watching for TARP waste, fraud and abuse should note today’s report of the Congressional Oversight Panel. According to the report, the Treasury Department has received “far less value in stocks and warrants than the money it injected into financial institutions.”
The report, “Valuing Treasury Acquisitions,” concludes that Treasury paid “substantially more for the assets it purchased under the TARP than the market value of those assets” at the time this deal was announced. The Panel revealed that, in the ten largest transactions with TARP funds, for each $100 spent by Treasury, it received assets worth only approximately $66.
The full report can be found at COP.Senate.gov.
Sen. Charles Grassley has emphasized that whistleblowers must use the qui tam provisions False Claims Act to guard against misuse of TARP funds through fraud, waste and abuse.
The Congressional Oversight Panel oversees the TARP funds authorized by Congress in the Emergency Economic Stabilization Act of 2008 (EESA) and provides recommendations on regulatory reform. The Panel members are Congressman Jeb Hensarling (R-TX), Richard H. Neiman, Superintendent of Banks for the State of New York, Damon Silvers, Associate General Counsel of the AFL-CIO, former U.S. Senator John E. Sununu (R-NH), and Elizabeth Warren, Leo Gottlieb Professor of Law at Harvard Law School.
We hope the Panel protects these taxpayer funds with zeal, and stops the inevitable attempts at misuse of the funds.