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President Barack Obama

I don't know about you, but I am concerned about some disturbing reports coming out of Capitol Hill these days.

Now don't get me wrong.  I back the President 100 percent.

But today, even other loyal supporters are beginning to ask questions on some of the programs, practices and policies at several federal agencies charged with carrying out the decisions of the Congress and President Obama.

Take for example, the Treasury Department's Troubled Asset Relief Program (TARP) coordinated by Secretary Timothy Geithner. 

Timothy Geithner

Just two weeks ago, Neil M. Barofsky, Special Inspector General appointed by former President George W. Bush in November 2008 to oversee TARP, told the Congress, in full view of the television cameras, that Treasury has misled the public.

Barofsky, a former assistant U.S. attorney in New York City,  also questioned the fairness of TARP's payouts to the nation's biggest banks. The TARP purse totals $700 billion of taxpayer money.

On improving the housing market, the 39-year-old Barofsky says Treasury has still not followed many of his suggestions on President Obama's Making Home Affordable (MHA) program.

Barofsky, a New York University Law School high-honors graduate, charges Treasury daily fails to accurately check for large-scale fraud among mortgage modification applicants.  He urges they should start doing this immediately and file the information in a central database that other agencies could access.

Neil Barofsky

Sounds like a simple, basic suggestion to me.  But wait, there's  more.

To prevent fraud on a massive scale, Barofsky says Treasury has not even asked mortgage servicers to compare the income reported by borrowers on their mortgage modification application with the income they claimed when they applied for the original mortgage.

I just can't believe that, but I'm sure the Special Inspector General would not have said it without having documentation or other proof to back up his charge.

The third point in Barofsky's most recent three-pronged complaint against Treasury involves the payment of $1,000 bonus incentives to mortgage servicers.

He wants Treasury to defer paying out those bonuses until after homeowners have made a minimum number of payments following the three-month trial period.

In all, Barofsky says he has, to date,  made 41 recommendations to the Obama Administration that would improve TARP and all of its sub-programs.  Of the 41 recommendations, Treasury has followed through on 18 and only partially followed through on seven.

That's a pretty miserable scorecard.

And that's the way I see it - for now. 

Please see related columns:

Alex's view of the World, Oct. 30, 2009
Alex's View of the World, Oct. 23, 2009
Alex's View of the World, Oct. 16, 2009
Alex's View of the World, Sept. 18, 2009
Alex's View of the World, July 31, 2009
Alex's View of the World, July 24, 2009
Alex's View of the World, July 17, 2009
Alex's View of the World, July 10, 2009
Alex's View of the World, May 15, 2009
Alex's View of the World, April 10, 2009

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