Oversight Committee to probe TARP in first hearing

“The Oversight Committee’s first hearing will offer Members the opportunity to question the Treasury Department on concerns that have been raised again and again by SIGTARP Barofsky,” said Issa in a statement. “TARP was conceived by a Republican Administration, approved by a Democratic Congress, and has operated for two years under the current Administration. It’s a fitting subject for bipartisan oversight in the new Congress.”

According to the release announcing the hearing, it will explore previous SIGTARP complaints about the lack of transparency surrounding the program, the failure of the Treasury’s efforts to prevent foreclosures under the Home Affordable Mortgage Program, and the Treasury’s “deceptive public statements” about the bailout of the American International Group (AIG).

The government’s handling of the AIG bailout, specifically the fact that AIG dished out large bonuses to its employees after receiving government support, led Issa to call for Geithner’s resignation in the spring of 2009.

However, TARP, while still unpopular with the public and politicians, has seen a string of relatively good news recently, as some of its programs have begun to wind down. For example, the Congressional Budget Office recently estimated the program could cost the government as little as $25 billion, down significantly from previous projections. And AIG finalized a plan earlier this month that would allow it to ultimately free itself from government backing over the next few years.