Speaking of TARP

The Government’s Troubled Assets Relief Program has now grown to about $3 trillion–about the size of last year’s entire federal budget, according to the quarterly report to Congress made by its Special Inspector General (SIGTARP).  Other highlights of the report:

— SIGTARP and the Treasury Department are still putting significant efforts into figuring out how to recoup $145 million in AIG executive bonsues.

— They’re also investigating whether AIG should have tried to negotiate downward its payments to its counterparties, instead of paying them at 100 percent of face value.

— The new Auto Warranty Commitment Program, which backs auto warranties on General Motors and Chrysler products purchased after March 30, 2009 will be handled through a special purpose entity and funded at about $1.1 billion.  If you bought before that date, your warranty claims will apparently be dealt with in bankruptcy.  Sorry.

— To speed things up, the IG has taken a lot of shortcuts in the process of awarding contracts, many of which are going to law firms and accounting firms.

— The TARP program will be hiring a lot more employees.

[Frank Snyder]