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A Tarp or A Tarpaulin, What Is TARP?
Guest Column | By Marion Edwyn Harrison, ESQ. | December 3, 2008
The somewhat archaic noun “tarpaulin” has several definitions, each relating in some way to covering up. As though there were too few entities in the Executive Branch of the Federal Government and to some extent in the Legislative Branch, Congress has created another. It is called the Congressional Oversight Panel, charged with review of the financial markets, regulatory scheme and the Troubled Asset Relief Program (itself denominated “TARP.”)
Whether meaningful oversight, or any type, can be made to assist in the governmental reaction to the economic jolt, recession or depression, whichever it turns out to be, is debatable. The mission of the Oversight Panel, much less its likely implementation of the mission, is vastly inclusive and, accordingly, not wholly clear.
The Oversight Panel is comprised of five panelists or members. The Speaker of the House of Representatives, the Minority Leader of the House, the Majority and Minority Leaders of the United States Senate each appoint one member. The Speaker and Senate Majority Leader jointly appoint one. Thus, three Democratic and two Republican appointees constitute the panel.
The qualifications of the panelists appear impressive. The two Republican appointees are Senator Judd Gregg, of New Hampshire, and Representative Jeb Hensarling, of Texas. Each apparently was chosen for studiousness, objectivity and demonstrated interest in economics, including service on Congressional committees with relevant jurisdiction, rather than for seniority or political quid pro quo. The three Democratic appointees are Mr. Richard Neiman, Professor Elizabeth Warren and AFL-CIO Associate General Counsel Damon Silvers. Neiman for a bit over the past one and one-half years has been New York State Superintendent of Banks, was a bank CEO and otherwise has been active in what might be termed banking oversight. Warren is a Harvard Law Professor, with expertise in bankruptcy and commercial law. Silvers for the past eleven years has represented organized labor before the Securities and Exchange Commission and has served on Treasury Department advisory groups.
The Oversight Panel is charged monthly to report to Congress, in the words of Speaker Nancy Pelosi (D-CA), “ . . . on the use of the Treasury Secretary’s authority under the Emergency Economic Stabilization Act, the impact of [Federal] asset purchases on financial markets, the effect of . . . disclosure on market transparency, and the effectiveness of the program in mitigating foreclosures and maximizing taxpayer benefits . . . [and is to analyze] the effectiveness of the current regulatory structure . . . and [to provide] recommendations . . . .”
One inevitably must wonder why existing Congressional and/or Executive Branch entities could not be charged with the same overwhelming task. Creation of the Panel, of course, is consistent with the Washington attempt to achieve something - to wit, create another entity. The quality of the panelists and the inclusivity of its charge combine hope with doubt.
Further to complicate the situation, as Washington is wont to do, President George W. Bush nominated Neil Barofsky, an Assistant United States Attorney in New York City, experienced in prosecution of white-collar crimes, to be a special Treasury Department Inspector General, in charge of auditing and investigating Federal expenditure of the bailout billions. Whether the imminent need is criminal enquiry obviously is questionable, at least as to imminence of timing, as is the proposed coordinating relationship, if any, between IG and Oversight Panel activities. The Senate has yet to confirm the Barofsky nomination so his role may be a very transient phenomenon.
Meanwhile, the worldwide economic jolt, recession or depression doubtless will continue, whether abated or slightly abated.
Marion Edwyn Harrison is President of, and Counsel for, the Free Congress Foundation.
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