Big banks are required to provide report on TARP money spent

According to the Treasury official the U.S. Treasury Department has requested big banks such as Citigroup, Bank of America, JPMorgan Chase, Wells Fargo, Goldman Sachs and Morgan Stanley, which received government bailout funds under the Troubled Asset Relief Program to provide more detailed information on lending activity in their monthly reports. Data on mortgage-backed securities and asset-backed securities purchases has also been asked for.

Neel Kashkari, head of the TARP program, commented on the request by saying "The purpose of this snapshot is to provide insight into the lending and financial intermediation activities of the largest recipients of the CPP (Capital Purchase Program)."

The Treasury is currently using up to $250 billion from half of a $700 billion rescue package aimed at strengthening banks and restoring their lending by purchasing their equity stakes.

Some critics have already stated that some banks were not using the cash infusions efficiently. 

Citigroup and Bank of America have already announced their plans on complying with all government reporting requirements.


Source: Reuters