Gov's TARP interventions set for audit

The top watchdog office over the $700 billion financial rescue package that has supported banks, automakers and other institutions will conduct an audit of the government's daily interactions with large firms receiving bailout funds.

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Neil Barofksy, the Special Inspector General over the Troubled Asset Relief Program (TARP), told Congress that he would conduct an audit into the government's steps to support firms receiving high levels of government aid, such as AIG, General Motors and GMAC LLC, the financing arm of GM.

Senate Finance Committee Chairman Sen. Max Baucus (D-Mont.) had requested the audit. It could also include oversight of the government stake in Citigroup, Bank of America, Chrysler and Chrysler Financial.

The audit will cover the extent of government direction and control in daily operations of the firms. Barofsky, in a letter to Baucus, said that his office also intends to look at risk management, internal controls, and efforts to monitor that the government's interest is protected relative to corporate needs.