Dear Madam and Sirs:
We write to urge you to include in any legislation funding federal purchases of troubled assets a provision creating a Special Inspector General to oversee the emergency efforts of the Treasury Department. Themost rigorous oversight possible must accompany this legislation if Congress is to approve a program that puts taxpayer dollars at risk.
This effort to take billions in bad assets off the books of America’s financial institutions is destined to be one of the most complex and difficult tasks ever undertaken. Congress owes American taxpayers the strongest oversight possible - not just after the task begins, but as it is planned. Proper oversight will require not only our constant effort, but the full time attention of an office with only one task: to monitor this extremely complex effort with a team of expert personnel who will not be distracted by other duties. This office must be given the power to investigate and audit, with the ability to issue subpoenas for any necessary documents. It must report to Congress a complete set of facts about the activities of the Treasury Department and its contractors every 120 days. Timely, comprehensive and independent reporting is critical to good oversight.
This proposal is based on the Special Inspector General appointed to investigate waste, fraud, and abuse inthe Iraq reconstruction program - an office that has worked in extremely challenging circumstances. Butthis Special Treasury Inspector General would be on the job long before waste, fraud, and abuse has a chance to take hold in the Treasury program.
The Special Inspector General would be nominated by the President within 30 days of passage of the financial market rescue plan. Once confirmed by the Senate, the Inspector General will appoint Assistant Inspectors General for Auditing and for Investigations, and will have the authority to hire other staff and to contract with outside entities. The Office would be charged with collecting the following information:
* categories of assets purchased (or procured by some other method)
* a list of assets in each category
* an explanation of how the assets were valued
* an explanation of why it was necessary to purchase each asset or groups of assets
* a list of financial institutions from which the assets were purchased
* a list of and information on each person or entity hired to purchase and manage the assets
* a current estimate of the total purchases made, the amount of assets on the books of the Treasury, the amount of assets sold and the profit and loss incurred on each sale or disposition.
The administration is asking the American people to put up $700 billion in a crisis, to execute a rescue plan for a faltering financial system. If Americans are to assume that level of risk, they deserve the action and advocacy of a team that wakes up every morning with one mission in mind: to track in the greatest detailpossible the efforts of the Treasury Department in order to hold the officials executing the plan accountable,allowing Congress to properly monitor this unprecedented effort.
We urge you to include this proposal in any Treasury legislation the Congress considers in the coming days.
Sincerely,
Max Baucus
Charles Grassley John Rockefeller
John Kerry Kent Conrad
Patrick Leahy Tom Harkin
Barbara Boxer Gordon Smith
Pat Roberts Ben Cardin
Claire McCaskill Blanche Lincoln
Larry Craig Carl Levin
Ben Nelson Hillary Rodham
Clinton Thomas Carper Olympia Snowe
Susan Collins Bill Nelson
John Barrasso George Voinovich
Diane Feinstein Ken Salazar
Debbie Stabenow Frank Lautenberg
Michael Enzi Tom Coburn
Sheldon Whitehouse Amy Klobuchar
Norm Coleman Lisa Murkowski
Source: Ranking Member’s News
