Regulating Credit Rating Agencies

Yesterday, I noted that the economy-strangling credit crisis was largely due to the purchase of "risky" financial assets by large financial and other institutions. But when these firms purchased the assets, they believed (or could plausibly claim they believed) they were making risk-free investments, because credit rating agencies (CRAs) -- the private entities that grade the riskiness of debt instruments -- judged the mortgage-backed securities (MBSs) the financial firms were buying to be so. Of course, it turned out that the CRAs failed spectacularly in their assessments.

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Are Agencies Slow to Spend Recovery Act Funds?

ProPublica's Christopher Flavelle makes an interesting observation about Recovery Act spending to date.

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OMB Watch Appeals Recovery Act FOIA Decision

Back when the Recovery Board released the Recovery.gov redesign contract, many in the transparency community were upset at the extent to which the General Services Administration redacted the contract. While we certainly expected General Services Administration (GSA) - the agency which conducts most of the federal government's procurement - to redact proprietary information, the document had massive swaths blacked out, including such ridiculous sections as the number of peak users and one part titled "Introduction."

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Panel Begins Work on Dissecting the Financial Crisis

The Financial Crisis Inquiry Commission, a 10-member, bi-partisan, group of congressional appointees charged with determining the causes of last year's financial markets meltdown will begin its work today. The crisis resulted in a $700 billion appropriations bill and trillions of dollars in loan guarantees from the Fed, and now the FCIC will put the events that lead to the systemic breakdown under a microscope.

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Public to See Recovery Act Data Oct. 15

Updated below

The Nextgov blog Tech Insider is reporting that on the eve of All Hallows' Eve, the public will be treated with its first look at Recovery Act recipient report data. Recovery Board chief Earl Devaney has told Tech Insider that that the reports will become available after the 20-day correction and revision period allowed by the law to "mitigate[] the board's concern that large amounts of uncorrected data could actually harm transparency rather than enhance it."

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White House to Voluntarily Release Visitor Logs

Today, the Obama administration made an important advance in executive branch transparency by agreeing to publish the White House visitor logs.  Norm Eisen wrote on the White House blog that, “Each month, records of visitors from the previous 90-120 days will be made available online.”  The White House agreed to this measure as part of a settlement in a lawsuit brought by Citizens for Responsibility and Ethics in Washington (CREW).  As part of this settlement, the Obama administration will also turn over some visitor logs belonging to the Bush administration.

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Treasury Gives Up on Lassoing SIGTARP

Eyebrows were raised in June when ABC News wrote about an inquiry by the Treasury Department to the Department of Justice as to whether the Special Inspector General for TARP (SIGTARP) was under the thumb of supervised and directed by the Treasury Secretary.

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Treasury's Shrewd Investment?

In a ploy to recapitalize Citigroup, Inc., the Department of Treasury converted last month a portion of its investment in the bank from preferred stock, which would have given Treasury an 8% return on its "investment" annually, to common stock (i.e. what is traded in the stock market), which guarantee nothing. So far, the gamble has paid off as Citi's shares have increased considerably in value since its purchase.

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Sunlight Foundation & ProPublica Release Foreign Lobbying Influence Tracker

In 2008, K Street received $86 million from foreign sources to pursue their interests with representatives of the American people.  While states and populations abroad certainly have legitimate interests in U.S. domestic and foreign policy, the origins of much of that money are still largely shrouded in secrecy.  The data, until now, has been difficult for most Americans to access.  As a result, the Sunlight Foundation and ProPublica joined together to track which foreign governments and corporations are lobbying for representation in the U.S. Congress.

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Ready, Set, Report

FederalReporting.gov opened up for business today. Prime recipients and first-tier sub recipients of Recovery Act funds can now begin reporting on their use of those funds.

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