TARP Funds Still "Untethered"

When Congress and the Bush administration collaborated on passage of a $700 billion economic bailout package in October, they sought to ease voters' fears by pledging to attach all manner of strings, twine and rope to the money. But, according to a new report, much of the program remains completely untethered two months later.

While acknowledging the complexity of administering a program of this magnitude in an ever-changing economic landscape, the Government Accountability Office - the nonpartisan investigative arm of Congress - found numerous shortcomings in efforts to ensure the bailout initiative's "integrity, accountability and transparency."

Among other things, GAO auditors said the Treasury Department has failed to establish sufficient safeguards to make sure financial institutions are using the emergency funds as intended; to set benchmarks to gauge whether the program's objectives are being met; and to implement adequate oversight of executive salaries and potential conflicts of interest.

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