| 00:00:46 |
Johnson, Tim P. - U.S. Senator, [D] South Dakota
IT IS HARD NOT TO THINK THAT TO THE INTENSITY. AS THEY PUT IT YESTERDAY, IT IS NOW CLEAR THAT ALTHOUGH AMERICAN HAS IN TOWARD THE RECESSION, IT HAS A...
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| 00:05:51 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
THANK YOU. IN LATE 2008, PAULSON AND BERNANKE CAME TO CONGRESS DEMANDING 700 BILLION. THEY INSISTED THAT THEY WERE ON THE VERGE OF A WORLDWIDE FINANCIAL...
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| 00:12:07 |
Johnson, Tim P. - U.S. Senator, [D] South Dakota
TELL ME ABOUT THIS. >> HE HEADS THE OFFICE OF FINANCIAL STABILITY. HE JOINED TREASURY IN MAY 2009. HE BECAME THE CHIEF OFFICER. IT SPREAD TO THE TREASURY....
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| 00:15:58 |
Massad, Tim - Assistant Secretary (Acting)
THANK YOU. I'M RESPONSE WILL FOR OVERSEEING THE THING. IT IS TWO YEARS SINCE IT HAS BEEN CREATED. IT IS CLEAR THAT HAS BEEN AFFECTED. WE FACED THE VERY...
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| 00:21:09 |
Kaufman, Edward "Ted" E. - U.S. Senator, [D] Delaware
THANK YOU COMMON CHAIRMAN JOHNSON. IT IS TRULY -- THANK YOU, CHAIRMAN JOHNSON. IS A PRIVILEGE TO OFFER MY PERSPECTIVE ON THE TARP PROGRAM. THE CONGRESSIONAL...
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| 00:26:00 |
Johnson, Tim P. - U.S. Senator, [D] South Dakota
THANK YOU, MR. CHAIRMAN. >>
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| 00:26:10 |
Barofsky, Neil M. - Special Inspector General
MR. BAROFSKY? >> IT IS A PRIVILEGE TO APPEAR IN FRONT OF YOU ONCE AGAIN. IT IS ALSO A PLEASURE FOR ME TO BE TESTIFYING ALONGSIDE MY OVERSIGHT COLLEAGUE....
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| 00:31:03 |
McCool, Thomas J. - Director
THANK YOU, THE CHAIRMAN JOHNSON. I AM PLEASED TO BE HERE TO DO THAT. UNDER A TARP, A BROAD RANGE OF ACTIVITIES HAVE BEEN INITIATED. PROVIDING ASSISTANCE...
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| 00:36:06 |
Johnson, Tim P. - U.S. Senator, [D] South Dakota
YOU. THANK YOU FOR YOUR TESTIMONY. AS WE BEGIN QUESTIONING, WE WILL HAVE DECLARED -- THE
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| 00:36:20 |
Q&A, -
CLERK PUTS FIVE MINUTES ON THE CLOCK FOR EACH MEMBER'S QUESTIONS PREYED HE RECENTLY TESTIFIED -- QUESTIONS. IF WE SHOULD NOT REPEAL THE PROGRAM, HOW...
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| 00:36:48 |
Barofsky, Neil M. - Special Inspector General
PROCESS? >> IT IS A FUNDAMENTALLY BROKEN PROGRAM. IF IT IS GOING TO BE PERMITTED TO CONTINUE, THE TREASURY NEEDS TO -- LET OUT A PLAN ON HOW TO FIX THE...
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| 00:39:35 |
Johnson, Tim P. - U.S. Senator, [D] South Dakota
AND INDEFENSIBLE. >> DO YOU AGREE THAT SERVICERS SHOULD IT REACH OUT TO HOMEOWNERS SOONER? SHOULD TREASURY EXPLORE CREATING A SINGLE POINT OF CONTACT...
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| 00:39:54 |
McCool, Thomas J. - Director
THAT BORROWERS KNOW THE TO COMMUNICATE WITH? >> WE HAVE RAISED RECOMMENDATIONS AND SOME OF THEM HAVE BEEN IMPLEMENTED OR PARTIALLY IMPLEMENTED. THERE...
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| 00:40:59 |
Massad, Tim - Assistant Secretary (Acting)
THAT THIS IS A CRISIS THAT WAS A DECADE IN THE MAKING. FOR TWO YEARS, NOTHING WAS DONE. WHEN WE LAUNCHED THIS PROGRAM, NO MODIFICATIONS WERE OCCURRING....
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| 00:42:57 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
I WANT TO THANK YOU FOR A GREAT JOB THAT YOU HAVE DONE AS INSPECTOR GENERAL. I REMEMBER WHEN YOU WERE UP FOR CONFIRMATION AND I TOLD YOU THAT I HOPE...
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| 00:44:26 |
Barofsky, Neil M. - Special Inspector General
ALLOW BIG BANKS TO FAIL? >> THANK YOU FOR YOUR COMMENTS. I REALLY DO APPRECIATE THEM. THEY MEAN A LOT TO ME AND MY FAMILY. ABSOLUTELY, THE FINANCIAL...
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| 00:48:01 |
Massad, Tim - Assistant Secretary (Acting)
DO YOU HAVE DIFFERENCES WITH THOSE FIGURES? >> THANK YOU, SENATOR. WITH THE SECRETARY WAS REFERRING TO WAS THE PURCHASE OF 40, THE AUTHORITY TO MAKE...
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| 00:49:16 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
THINK THAT DODD-FRANK HAS GIVEN US TOOLS TO FIX IT. >> TO CURRENT MEMBERS AND ONE FORMER MEMBER OF THE CONGRESSIONAL OVERSIGHT PANEL EXPLAINED BY TARP...
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| 00:50:17 |
Barofsky, Neil M. - Special Inspector General
DO YOU DISAGREE WITH THAT CONCLUSION? >> I THINK IS IMPORTANT TO VIEW TARP IN THE CONTEXT OF THE BROADER SCOPE OF THE GOVERNMENT'S RESPONSE TO THE FINANCIAL...
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| 00:51:14 |
Reed, John "Jack" F. - U.S. Senator, [D] Rhode Island
RECALL WAS PALPABLE FEAR THAT WE RUN ON THE CUSP OF A SIGNIFICANT FINANCIAL COLLAPSE, THAT THE TOOLS AVAILABLE HAD BEEN EXHAUSTED AND THAT WE NEEDED...
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| 00:52:43 |
Barofsky, Neil M. - Special Inspector General
I CAN BEST REPORTS ON THE EXTENSIVE WORK WE HAVE DONE THAT IN INTERVIEWING ALL OF THE MAJOR PARTICIPANTS. WE WERE ON THE BRINK OF A CATACLYSMIC FAILURE....
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| 00:56:27 |
Massad, Tim - Assistant Secretary (Acting)
THANK YOU, SENATOR. THANK YOU FOR YOUR PUSH FOR THAT PROVISION. IT WAS VERY IMPORTANT AND YOU ARE ABSOLUTELY RIGHT ON YOUR FIGURES. WE HAVE RECOVERED...
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| 00:56:59 |
Reed, John "Jack" F. - U.S. Senator, [D] Rhode Island
A QUICK COMMENT -- THIS ISSUE OF MORAL HAZARD IS NOT UNIQUE TO THIS TIME AND THIS PLACE IN FINANCIAL HISTORY. ANYTIME A GOVERNMENT PROVIDES SUPPORT,...
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| 00:57:58 |
Kaufman, Edward "Ted" E. - U.S. Senator, [D] Delaware
CRISIS. >> IT IS REALLY QUITE EXTRAORDINARY. THERE IS A CONSENSUS. THERE WAS A SOLID CONSENSUS THAT TARP STOPPED WHAT COULD'VE BEEN A VERY BAD SITUATION....
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| 00:59:36 |
Moran, Jerry - U.S. Senator, [R] Kansas
THIS IS DIRECTED TO MR. BAROFSKY. I AM NOT CERTAIN. I AM TROUBLED BY THE LONG TIME ASSERTION THAT THE SUCCESS OF TARP WAS DETERMINED BY THE RETURN OF...
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| 01:02:21 |
Barofsky, Neil M. - Special Inspector General
THE TUNNEL VISION OF MISSION ACCOMPLISHED IGNORES THE IMPORTANT NON-FINANCIAL COSTS OF TARP. THEY ARE JUST AS IMPORTANT AND MAY PROVE TO BE MORE IMPORTANT....
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| 01:03:32 |
Kaufman, Edward "Ted" E. - U.S. Senator, [D] Delaware
OF THE NEWS ARTICLES TALK ABOUT TARP AND TALK ABOUT THE $700 BILLION. I TOTALLY AGREE WITH WHAT HE SAID. THERE -- THE THING THAT IS AMAZING IS THAT 60%...
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| 01:04:32 |
Moran, Jerry - U.S. Senator, [R] Kansas
THANK YOU. IS THERE ANY ANALYSIS BY THOSE OF YOU HAVE DONE OVERSIGHTS IN REGARD TO WAS THERE A BETTER WAY TO DO IT? WAS THERE A GREATER OPPORTUNITY FOR...
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| 01:05:30 |
Hagan, Kay R - U.S. Senator, [D] North Carolina
THANK YOU, MR. CHAIRMAN. I WANT TO WELCOME ALL OF YOU HERE TODAY. THANK YOU FOR YOUR TESTIMONY. SENATOR KAUFMAN, IT IS CERTAINLY A PLEASURE TO SEE YOU...
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| 01:06:55 |
Kaufman, Edward "Ted" E. - U.S. Senator, [D] Delaware
OF COMMUNITY BANKS IN OUR MAIN STREET COMMUNITIES. >> MIXTURE WE DO NOT HAVE TOO BIG TO FAIL. IT IS DIFFICULT -- MAKE SURE WE DO NOT HAVE TOO BIG TO...
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| 01:09:01 |
Massad, Tim - Assistant Secretary (Acting)
THRIVING COMMUNITY BANK INDUSTRY IN THIS COUNTRY WITH THE OBAMA ADMINISTRATION TOOK OFFICE, WE DID NOT PROVIDE ANY ADDITIONAL FUNDS TO THE LARGEST BANKS...
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| 01:10:05 |
Hagan, Kay R - U.S. Senator, [D] North Carolina
IT APPEARS THAT SOME OF THE SMALLER BANKS ARE HAVING TROUBLE PAYING SOME OF THE TARP MONEY BACK. ARE WE SETTING THEM UP BY CONTINUING TO ASK THEM TO PAY...
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| 01:11:22 |
Barofsky, Neil M. - Special Inspector General
TO HELPING HOMEOWNERS? >> THE IMPORTANT THING IS THERE HAS TO BE INITIALLY AND ACKNOWLEDGEMENT FROM TREASURY THAT THIS PROGRAM IS FAILING. THE CESSATION...
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| 01:12:32 |
Kaufman, Edward "Ted" E. - U.S. Senator, [D] Delaware
THE REALITY OF THE SITUATION IS BAD -- IS ACROSS THE TABLE FROM EACH OTHER AND THEN MODIFY A LUNG. THAT IS PRETTY SIMPLE. NOW THEY HAVE THE SERVICERS...
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| 01:14:20 |
Massad, Tim - Assistant Secretary (Acting)
WITH RESPECT TO THE PROGRAM. AS FAR AS THE BASIC STRUCTURE, THAT IS DETERMINED BY A LOT AND THE POWERS THAT WE HAD. IT HAD TO BE VOLUNTARY PROGRAM. I...
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| 01:15:48 |
Johnson, Tim P. - U.S. Senator, [D] South Dakota
BE FIXED OVERNIGHT. >> MR. BAROFSKY, CAN YOU ELABORATE ABOUT THE PROGRAM AND WHICH YOU ADVISE US TO
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| 01:16:05 |
Barofsky, Neil M. - Special Inspector General
DO WHAT IT -- WITH THE PENALTIES? >> THE NUMBERS ARE POTENTIALLY MISLEADING. THERE MAY HAVE BEEN 40,000 INITIAL PERMIT MODIFICATIONS, BUT IS THAT A...
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| 01:18:38 |
Massad, Tim - Assistant Secretary (Acting)
IS AN INDUSTRY THAT WAS NOT WORKING. >> WE HAVE NOT CHANGED OUR LEGAL POSITION. WE CANNOT IMPOSE FINES AND PENALTIES IN THE MANNER OF A LETTER LATER...
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| 01:19:58 |
Menendez, Robert "Bob" - U.S. Senator, [D] New Jersey
I'M HAPPY TO HAVE ANYONE IF YOU ANSWERED. I AM THRILLED TO SEE MY FORMER COLLEAGUE HERE. NOW I GET TO ASK YOU ALL OF THIS. JUST KIDDING. WE DID NOT DO...
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| 01:20:29 |
Massad, Tim - Assistant Secretary (Acting)
WE FACE THE RISK OF THE GREAT DEPRESSION. IT IS NOTED BY MANY ECONOMISTS AND OTHER. IT IS ALL THE GOVERNMENT INTERVENTIONS. IT WAS COORDINATED. IT WAS...
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| 01:21:13 |
Kaufman, Edward "Ted" E. - U.S. Senator, [D] Delaware
WHEN YOU FACE THE SITUATION, THEY PUT IT THERE. I THINK THE KITCHEN SINK, TOO. I THINK THE FIGURE OUT WHETHER T.A.R.P. STOP SPECIFIC THEMES. THIS WOULD...
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| 01:23:11 |
Menendez, Robert "Bob" - U.S. Senator, [D] New Jersey
IS NO WHEN IN THAT ONE. HE HAD TO MAKE SURE YOU NEVER HAVE TO FACE THAT. >> I OFTEN HAVE AVERAGE CITIZENS STOP IN SAID "I DO NOT GET IT, " WHEN THEY...
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| 01:26:07 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
IF YOU WOULD WALK US THROUGH WHAT HAPPENED AT AIG, WHAT WE DID TO GET INTO THAT, WHERE WE ARE
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| 01:26:20 |
McCool, Thomas J. - Director
TODAY. YOU KNOW THEY DID TO IT EARLIER. THERE ARE ALL KINDS OF REPORTS THAT EVERYTHING IS OVER WITH. I DO NOT THINK THAT IS TRUE. EFFECTS>> IN THE RECENT...
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| 01:28:38 |
Massad, Tim - Assistant Secretary (Acting)
THIRD IS ABOUT $10 BILLION. IT IS DONE BY ASSETS. >> THAT IS PART OF THAT $60 BILLION. >> TODAY THE STOCK PRICES ARE BUT THE VALUE OF OUR INVESTMENT....
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| 01:30:00 |
Shelby, Richard C. - U.S. Senator, [R] Alabama
RELEASE THEIR INTERNAL PROJECTIONS FOR THE NUMBER OF MORTGAGES THAT IS SAID TO BE SUCCESSFULLY MODIFIED UNDER THE MODIFICATION PROGRAMS. HAVE BBC ALL...
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| 01:30:38 |
McCool, Thomas J. - Director
AS SOME OF US HAVE BEEN SAYING, AND THINK WE HAVE BEEN SEEN BENCHMARKS FOR SOME OF THE PROGRAMS. I THINK THAT IS WHAT WE WOULD LIKE TO SEE. IT DOES...
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| 01:31:53 |
Barofsky, Neil M. - Special Inspector General
IT HAS NOT YET BEEN IMPLEMENTED. WHAT IS ONGOING TODAY AND WHAT IS THE BIGGEST FAILURE SO FAR IS RELATED TO IT. I WOULD GO BACK TO THE MODIFICATION....
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| 01:32:44 |
Massad, Tim - Assistant Secretary (Acting)
THINK WE HAVE IMPLEMENTED THE RECOMMENDATIONS WITH RESPECT TO THE STRUCTURE OF THE PROGRAM. IT IS A COMPLIANCE ISSUE. ALL WE CAN DO IS WITHHOLD THE PAYMENTS...
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| 01:33:31 |
Johnson, Tim P. - U.S. Senator, [D] South Dakota
PERRIN >> ONE MORE QUICK QUESTION. BEFORE HEMP, WHEN SERVICERS LED TO THEIR ON DEVICES, WHAT KIND OF MODIFICATIONS WERE
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| 01:33:48 |
Kaufman, Edward "Ted" E. - U.S. Senator, [D] Delaware
OFFERED TO STRUGGLING HOMEOWNERS? >> THAT IS OUT OF OUR JURISDICTION. THIS IS A SYSTEMIC PROBLEM FOR SERVICERS. THEY HAD THESE INCREDIBLE CONFLICTS OF...
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| 01:34:46 |
Massad, Tim - Assistant Secretary (Acting)
THIS HAD BEEN ACUTE FOR TWO YEARS. THE FEW THAT WERE HAPPENING GENERALLY DID NOT HAVE THE PAYMENTS. ONE THING THEY ACCOMPLISHED WAS THE STANDARD AS...
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| 01:35:44 |
Kaufman, Edward "Ted" E. - U.S. Senator, [D] Delaware
I'VE VOTED ON THIS. I WAS TALKING TO SOMEONE WHO IS EMERGING ACQUISITION PERSON. HE DID NOT UNDERSTAND WHY THERE WAS A PROBLEM THERE. THEY KNOW THEY WOULD...
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| 01:37:09 |
Johnson, Tim P. - U.S. Senator, [D] South Dakota
THAT THEY HOUSE PRICES WILL NOT BE REDUCED. >> THERE ARE MANY LESSONS WE CAN TAKE. ONE KEY ONE IS THAT OVERSIGHT IMPROVE OUTCOMES. S CHAIRMAN, I INTEND...
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NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.