The Emergency Economic Stabilization Act of 2008 (EESA), which was enacted as P.L. 110-343 on October 3, 2008, established an additional Special IG for the Troubled Asset Relief Program (SIGTARP). Under EESA, TARP funds may be used by the Secretary of the Treasury to purchase "troubled assets," defined to include both mortgage-related financial instruments and other types of securities which the Secretary, after consulting the Chairman of the Board of Governors of the Federal Reserve System, determines to purchase as necessary "to promote financial stability." The 111 th Congress has passed two bills containing provisions related to the SIGTARP. 111-15 , the Special Inspector General for the Troubled Asset Relief Program Act of 2009, was enacted on April 24, 2009. 111-22 , the Helping Families Save Their Homes Act of 2009, was enacted on May 20, 2009, and contains provisions with regard to SIGTARP in the context of public-private investment funds. EESA's Provisions Regarding the Special Inspector General for the Troubled Asset Relief Program (SIGTARP)

The provisions in EESA establishing the SIGTARP are similar to the IG provisions for SIGIR and SIGAR in many respects. P.L. P.L. IGs' Authority to Conduct Audits and Investigations

This portion of the report provides a legal analysis of the general ability of IGs to conduct audits and investigations, as well as the specific authority of the SIGTARP to conduct audits and investigations. H.R. H.R. Additionally, H.R. 384 provides that "[t]he Special Inspector General shall also have the duties, responsibilities, and authorities of inspectors general under the Inspector General Act of 1978, including section 6 of such Act." The SIGTARP Letter to TARP Recipients and the Paperwork Reduction Act

On January 22, 2009, SIGTARP Neil Barofsky noted in a letter to the Chairman of the House Committee on Financial Services that his office was preparing requests to TARP recipients asking them to provide information and documentation related to their use or expected use of TARP funds, as well as their plans for following executive compensation limitations, within 30 days of the request.
This report discusses the Special Inspector General provisions in the Emergency Economic Stabilization Act of 2008 (EESA), which was enacted as P.L. 110-343 on October 3, 2008. This act created a Special Inspector General for the Troubled Asset Relief Program (SIGTARP). Under EESA, TARP funds may be used by the Secretary of the Treasury to purchase "troubled assets," defined to include both mortgage-related financial instruments and "any other financial instrument that the Secretary, after consultation with the Chairman of the Board of Governors of the Federal Reserve System, determines the purchase of which is necessary to promote financial market stability." The broad authorities provided to the SIGTARP by EESA have not changed even though the Secretary of the Treasury has modified the approach to stabilize the financial industry through the TARP.
The 111th Congress has passed two bills containing provisions related to SIGTARP. P.L. 111-15 (S. 383/H.R. 1341), the Special Inspector General for the Troubled Asset Relief Program Act of 2009, was enacted on April 24, 2009, and addresses the SIGTARP's auditing, investigative, and hiring authorities. P.L. 111-22, the Helping Families Save Their Homes Act of 2009 (H.R. 1106/S. 895/S. 896), was enacted on May 20, 2009, and contains provisions concerning SIGTARP in the context of public-private investment funds. Other bills addressing the SIGTARP include H.R. 384 (which passed the House on January 21, 2009), H.R. 1242, H.R. 3179, S. 910, and S. 976.
This report will compare the duties and authorities of the SIGTARP to those of the Special Inspector General for Iraq Reconstruction (SIGIR) and the Special Inspector General for Afghanistan Reconstruction (SIGAR), as well as statutory IGs under the Inspector General Act of 1978, as amended (IG Act).
The report will also cover the authority that Inspectors General possess to conduct audits and investigations. Finally, the report will provide an overview of the SIGTARP's request to TARP recipients regarding their use or expected use of TARP funds, as well as their plans for following executive compensation limitations, and possible issues raised by the Paperwork Reduction Act.