Coming Soon: TARP Lobbying Rules

According to The Hill, the Treasury Department is waiting for the administration's approval before finalizing restrictions on lobbying for Troubled Asset Relief Program (TARP) funding, only ten months after the program began. The Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Neil Barofsky, has released an audit, "Opportunities to Strengthen Controls to Avoid Undue External Influence Over Capital Purchase Program Decision-Making." It has recommendations for limiting outside pressure over the TARP decision-making process. The rules will be in place after more than $70 billion has been repaid to the government. Reportedly the rules will be similar to those regarding lobbying for Recovery Act funds. The audit states: "The TARP policy will state that Treasury employees cannot talk to lobbyists or members of the Congress, with one exception-instances of overarching policy discussions."

Barofsky's report showed minimal efforts from politicians and other outside influences to affect the government's decision on which banks to help. According to the report, there were inquiries to the Treasury Department by only 2 percent of potential or actual applicants. Of those 56 firms with potential or completed applications, 16 received funds, 12 have applications pending, 26 did not receive help because they either withdrew their applications or were denied, and another two did not apply. Barofsky recommended setting up clearer procedures for documenting phone calls and other communications from outside influences.
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