JUST MORE THAN A YEAR after the Troubled Asset Relief Program
(TARP) was established by the United States Congress, the program continues
to cast a long shadow across American business in general and the banking
industry in particular. A number of oversight agencies issue periodic reports
examining aspects of the program, recommending improvements and proposing additional regulations, investigations, audits, and restrictions on banking
activities. While actual TARP restrictions apply to very few institutions, the
Obama administration and Congress continue to propose and discuss further regulation, restrictions, and other conditions to attach to bank business
practices. In addition, TARP imposes pay restrictions and other compliance
requirements that have evolved and changed since the program was enacted.
This article aims to present a clear picture of TARP, providing an overview
of its numerous programs, describing the network of agencies and other government bodies tasked with overseeing it, and examining some of the key compliance requirements and other conditions attached to the receipt of TARP funds.
