We must improve TARP transparency (Rep. Joe Sestak)

With the release of a key oversight report on government assistance to the auto industry, it is clear that we need immediate action on the document's recommendations to improve transparency and accountability. I have written to U.S. Treasury Secretary Timothy Geithner to continue my persistent efforts, dating back to the previous administration, to see that the Department not only use taxpayer money responsibly, but also earn the faith of the taxpayers themselves.

As I reviewed the report, it became clear that we still are not seeing full transparency and accountability in the use of Troubled Asset Relief Program (TARP) funds in the support and reorganization of the domestic automotive industry. In my letter to Secretary Geithner, I expressed my concerns for the ongoing oversight and control of TARP funds provided to General Motors and Chrysler.

Because there are competing and conflicting objectives with regard to ongoing operations at General Motors and Chrysler, the Treasury must quickly begin implementation of the recommendations outlined in the report. In particular, it is important to clearly isolate the operations from political considerations. For example, the recommendation to transfer funds into an independent trust should be actively pursued.

Without some intervention to assist in the retooling of the domestic auto industry, many hundreds of thousands of jobs in manufacturing, parts supply, and dealerships would have been lost, in addition to vital advanced research, development, and manufacturing capability. An uncontrolled, extended bankruptcy would have had a devastating ripple effect across the broader economy.

As I continue to support the actions taken to save hundreds of thousands of jobs related to the auto industry, I remain intensely committed to restoring public confidence that our government can responsibly administer effective oversight.

We cannot begin to restore public confidence in our governmental and financial institutions until the American taxpayers see consistent enforcement of oversight provisions, a clear statement of progress against objectives, and accountability for success or failure. Without the transparency of open and full disclosure, lessons will not be learned and public confidence will not be rebuilt.