The Congressional Oversight Panel oversees the Troubled Assets Relief Program (TARP) to ensure government funds are used wisely. The panel reports to Congress every 30 days and consists of five members chosen by House and Senate leaders. TARP was created to rescue banks facing bankruptcy, and the oversight panel provides transparency and accountability for public spending.
The Congressional Oversight Panel was created in 2008 to oversee the Troubled Assets Relief Program (TARP), also known as a bailout. The five-member panel sits in the legislative branch of the US government and is charged with making sure the government spends bailout money in the best interests of the US economy and the taxpayer. While the Congressional Oversight Panel has little effective power to change U.S. policy, it does try to provide transparency into government actions and help provide accountability for money spent to counter the financial crisis.
In 2008, TARP was signed into law and the Congressional Oversight Panel was created based on Title 1, Section 125 of the bill. This panel examines the US economic market, evaluates regulations, and the US Treasury’s use of bailout funds. The panel is charged with reporting to Congress every 30 days on how TARP money is being spent. This includes overseeing how banks receiving TARP money spend those funds.
The Congressional Oversight Committee consists of five people. One is chosen by the Speaker of the House and one by the Minority Leader of the House, with Senate Majority and Minority Leaders responsible for choosing two other members. The final member, typically the presiding judge, is chosen jointly by the Speaker of the House and the Majority Leader of the Senate.
The Troubled Assets Relief Program, originally valued at $356 billion in US dollars (USD), was launched to rescue banks that were facing bankruptcy or collapse. With the large sums of money these financial institutions required to stay afloat, the creation of the oversight panel was seen as necessary to ensure government funds were allocated wisely and without waste. Following several reports that companies were spending taxpayer money on what many would consider wasted spending, the Congressional Oversight Committee was tasked with recommending new regulations and laws to Congress.
While the Congressional Oversight Panel’s primary goal is to make sure that TARP money is used in America’s best interests, it also serves as a means to greater transparency in public spending. The extraordinary cost of the TARP bill has caused great concern to many American taxpayers. Congressional Oversight Panel reports are open to the public, providing US citizens with detailed information about how their tax dollars are being spent and whether or not that spending is improving the economy.
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