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Uncovering the impact of TARP

Lawmakers question plan's oversight, use in curbing foreclosures

Lawmakers expressed concerns today about oversight of the Treasury Department's $700 billion Troubled Asset Relief Program, questioning whether the money spent so far has done much to stabilize credit markets or reduce foreclosures. The Treasury Department has already doled out $195 billion through TARP without a system in place to measure whether the money is actually helping relieve the credit crunch, or whether banks and other companies that receive the money are complying with restrictions on its use, according to a Government Accountability Office report to Congress. Instead of purchasing troubled assets as originally proposed, the Treasury Department has purchased $155 billion in preferred shares in 87 banks and financial institutions -- with no requirements that the banks track or report how they use the money -- Acting Comptroller General Gene Dodaro told members of the House Financial Services Committee at a hearing today . Some critics have complained that inste...