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Treasury Department Gets More Transparent

The Treasury Department said Wednesday that it would make public the completed investment contracts with every company that has received taxpayer assistance…

By user , in news , at January 28, 2009

The Treasury Department said Wednesday that it would make public the completed investment contracts with every company that has received taxpayer assistance through the $700 billion Troubled Asset Relief Program.

As the first step in its effort to boost transparency and accountability, the Treasury Department posted on its web site the stock purchase agreements it signed with the nine major banks that got the first wave of funding, totaling $125 billion.

The Treasury Department also posted other contracts covering aid packages it provided to Citigroup Inc.American International Group Inc.General Motors Corp.Chrysler LLC and GMAC LLC.

In announcing its revised transparency policy, the department said it still planned to redact confidential or propriety information from the public copies of the agreements. It said it would post new investment contracts within five to 10 business days of their signing. It said it would add older contracts on a rolling basis over the coming weeks.

The Treasury Department did not say whether its new emphasis on transparency would extend to the services contracts it signed with nine financial, accounting and legal firms that are providing advice on its TARP investments.

The copies of the contracts posted on the agency’s web site last year had blacked out or redacted sections where information about compensation rates or other financial details should have been. The contract with Bank of New York Mellon — the master custodian for the $700 billion that will flow through TARP – obscured the total value of the deal, as well as the formula used to determine the company’s compensation.

BailoutSleuth filed requests with the Treasury Department for unredacted versions of the contracts under the federal Freedom of Information Act. We still are awaiting a decision.

Here are links to the contracts posted Wednesday on the Treasury Department’s site..

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