Can Technology Help TARP Transparency?
Interim Assistant Secretary for Financial Stability Neel Kashkari, who testified before the House Committee on Oversight and Government Reform Domestic Policy Subcommittee on Wednesday, said a common reporting format for filings related to the Troubled Asset Relief Program such as XBRL (Extensible Business Reporting Language) would greatly improve transparency. He previously remarked that the Treasury could not track TARP fund use, according to Oversight and Government Reform ranking member Darrell Issa.
XBRL is in place as a reporting standard in about 40 countries and banks in the United States are currently required to disclose information to the FDIC in XBRL format. The SEC recently approved a final rule mandating the use of XBRL for all public company reporting, with some firms required to comply starting in June. "XBRL is about independent and understandable transparency," Issa said. The technology could show the taxpayers how their money is being used while providing measurable results, he said.
"After two administrations and roughly six months of the blind leading the blind, we are still meeting resistance from the administration on implementing a common platform that would allow us to track TARP dollars and value toxic assets," Issa said. "These are taxpayer dollars and the technology exists to track TARP dollars, but Treasury continues to obstruct transparency." Subcommittee ranking member Jim Jordan, R-Ohio, gave the Treasury's grade for transparency an "F." "The American people who are footing the bill deserve far better than what they're getting in terms of transparency," he said.
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