Senator reveals ideas for tougher TARP oversight

Senate Banking Committee Chairman Christopher Dodd, D-Conn., on Thursday outlined a more robust oversight plan for the Troubled Asset Relief Program. Among the ideas under consideration is a stipulation that firms receiving TARP funds give back to the government any executive bonuses paid out since the program began. And before any request is made for additional TARP money, Treasury Secretary Tim Geithner must demonstrate the department is properly handling allocated funds.

Otherwise, Dodd said, he would be reluctant to endorse the program's continuation. Dodd also called for including a 90-day foreclosure moratorium to be put in the stimulus package working its way through Congress, and he proposed holding hearings twice a week on how to create a new regulatory framework.

On other legislation, Dodd expressed uncertainty the Senate could promptly pass "cram-down" legislation that would allow bankruptcy judges to alter mortgages -- a measure proposed by Majority Whip Dick Durbin, D-Ill., and others. Dodd said he has been told that President Obama is receptive to a proposal to have the FDIC take the lead in systematic anti-foreclosure efforts.

Credit-card reform legislation might be easier to move. "I think the mood has changed." Dodd said.

As far as getting a financial regulatory modernization bill done by April, a stated goal of Obama, Dodd declined to say whether he could meet that deadline. Another idea in the works is a Consumer Financial Products Safety Commission, which he said he has discussed with House Financial Services Chairman Barney Frank, D-Mass., with whom he met this morning.

Dodd detailed a busy hearing schedule for his panel. Geithner is slated to come before the committee on Feb. 10, at which point he may have readied a plan to help stabilize the housing market and capitalize the banking system. Dodd will hold a TARP oversight hearing next Thursday with GAO officials and Elizabeth Warren, who chairs TARP's oversight board.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
Close [ x ] More from GovExec

Thank you for subscribing to newsletters from
We think these reports might interest you:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care


When you download a report, your information may be shared with the underwriters of that document.