How the government will track $500B in bailout funds

“We felt that instead of the extremely expansive version that our democratic colleagues were pushing for, we should follow the TARP approach, which would focus on certain transactions,” said Senator Pat Toomey (R-Penn. ) On Wednesday.

The effectiveness of the measures depends on how the new regulators are structured, what powers they have and, perhaps most importantly, who was chosen to implement them, according to watchdogs and veterans of the bank rescue supervision programs.

“You can set up an Inspector General, but you need to make sure that he or she has the necessary powers,” said Neil Barofsky, who was the TARP Special Inspector General. “You have to choose the right person. It is a meaningless position if you don’t have someone who fights for independence and has the necessary transparency and experience to protect yourself from fraud in a program of this size and scope.”

The bill would create a Treasury special inspector to review Treasury loans and set up a supervisory body to protect taxpayers’ money. According to Chuck Schumer, Chairman of the Senate Minority, this would also enable “real-time public reporting” on treasury transactions, including the terms of credit, investment, or other business support.

In addition, the bill would prohibit the Treasury’s loans or investments from going to businesses controlled by the President, Vice-Presidents, members of Congress and the heads of executive departments.

The proposed funding includes $ 46 billion for passenger airlines and other industries, and $ 454 billion for supporting Federal Reserve loan programs to corporations, states, and communities.

The bipartisan congressional oversight commission, which is to be established with the draft law reviewing decisions by the Treasury and the Fed, would consist of five members appointed by the GOP and the House and Senate democratic leaders in accordance with the law distributed Wednesday.

“It’s overboard,” White House economic adviser Larry Kudlow said Tuesday of Fox Business. “Everyone will have a chance to see it. Nothing will remain hidden.”

TARP was also subject to a special general inspector and a supervisory body. Before being elected to the Senate, Senator Elizabeth Warren (D-Mass.) Became one, in part because of her role as head of the TARP Congressional Oversight Panel, in which she interviewed personalities such as the then Treasury Secretary Tim Geithner about the bank bailouts advanced icon.

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