In an attempt to curb the ongoing financial crisis of 2007-2008 Congress created the 'Troubled Asset Relief Program - TARP'. The TARP gives the U.S. Treasury purchasing power of $700 billion to buy up mortgage backed securities (MBS) from institutions across the country, in an attempt to create liquidity and un-seize the money markets. In March 2009, President Obama decided to bailout GM and Chrysler under TARP.

Troubled Asset Relief Program

from NCPA,

In relation to the Troubled Asset Relief program (TARP), the Government Accountability Office (GAO) has made a total of 72 recommendations; 59 of which have been implemented and among the remaining ones, four have been partially implemented and three haven't been implemented at all. Of the non-implemented recommendations, due to the evolving nature of the programs, some were considered outdated and no longer applicable. These recommendations are concerned particularly with two of TARP's programs: Capital Purchase Program (CPP), which supports certain U.S. financial institutions, and Making Home Affordable (MHA), which is a collection of housing programs designed to help homeowners avoid foreclosure. - Of the recommendations that have not been implemented one suggests that the Treasury consider analyzing and reporting on remaining and former CPP participants separately. - The other two are directed at the MHA and require that Treasury establish a standard process to better ensure that changes to TARP-funded MHA programs are based on comprehensive benefit-cost analyses.

To determine the implementation status, the GAO conducted a performance audit which assessed relevant documentation from Treasury, interviewed Treasury officials, and reviewed prior TARP reports. The GAO continues to maintain that the Treasury should take action to fully implement the four partially implemented recommendations and three open recommendations.

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