>> well, we carefully considered sigtarp's recommendation. we welcome sigtarp's ideas.say that the sigtarp has suggested dozens of ideas to us and we look back and we've accepted in a way very similar accepted the sigtarp's recommendations. about three-fourths of the themes there are cases where we have determined that in the interest of financial stability and because we can find other ways of protecting the taxpayer, that we declined to implement and one of these cases has been the creation of a wall. now, in many cases and here i draw on 35 years of experience in the financial services industry. in many cases it makes great sense to have a wall to separate asset managers in one area from asset managers in another. in the case of the asset managers we're hiring, on behalf of the taxpayer, we want to have their best talent working for the american taxpayer in the ppip fund but these managers in these fund complexs are already committed to other funds that they manage. the fund cannot take them away from those in order to focus on ours. conversely if we allowed the best

>> well, we carefully considered sigtarp's recommendation and we welcome sigtarp's ideas. i must say that the sigtarp has suggested dozens of ideas and we look back and we have accepted in a way very similar accepted the sigtarp's recommendations about three-fourths of the time. there are some cases where we have determined that in the interest of financial stability and because we can find other ways of protecting the taxpayer that we declined to implement. and one of these cases has been the creation of a wall. not in many cases and here i draw upon 35 years experience in the financial industry. in many cases it makes great sense to have a wall to separate asset managers in one area from asset managers and another and in the case of the asset managers we are hiring on behalf of the taxpayer, we want to have their best talent working for the american tax payer in the ppip fund. but these managers in these fund complexes are already committed to other funds that they manage. the fund cannot take them away from those in order to focus on hours conversely if we allow the bes

>> well, first of all we welcome the recommendations of the sigtarp of their bodies. as i mentioned earlier in the testimony, we have adopted or have come very close with a few minor details to adopting about three-fourths of the recommendations we have received. >> well, there's only four recommendations. he says you haven't adopted any of them. i just want to get a clear answer. will you or will you not make public how the money that's been received by the banks in t.a.r.p. have been spent. >> let me first of all point out every month we provide comprehensive information on our website, financial stability.gov about the actual lending activities of all the banks in which we've invested. >> mr. allison with all due respect and asking a simple question and want a simple answer. either you are willing to do it or you are not willing to do it. >> we think the most important information -- >> yes or no, will you do it? >> we have looked at that possibility. our concern, which we have mentioned, is that -- let me give you some examples. this is a capital purchase program.

i can now understand why the treasury department would like to rein in sigtarp, but we are all going to let that happen. you heard from the amendments on the committee today in terms of their commitment. again i thank our witness, mr. barofsky. finally, please let the record demonstrate my submission of a binder with documents related to this hearing. without objection i enter this winder into the kennedy records and without objection, the committee stands adjourned. thank you, mr. barofsky, for your time and information you have shared with us. the committee is adjourned. >> thank you, mr. chairman. [inaudible conversations] [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2008] >> today the house appropriations committee works on the annual defense spending bill. the white house proposes spending 534 billion for next year's defense budget. live coverage of the committee lockups session starts at 9:00 eastern on c-span 3 and online at c-span.org. >> join the conversation on civil rights and race relations with onjuan williams

i am not sure voting in particular from our perspective, from sigtarp's perspective, it certainly would make a difference from the treasury perspective to control the actions of the financial institutions. >> thank you. my time is up. >> thank you. i now yield five minutes to the former chair of this could become a gentleman from indiana. >> thank you mr. chairman. i don't want to be redundant because i got here late so i apologize if i ask questions you already answered but why do you think the treasury department is dismissive of your calculations? >> i don't know. i think that it is -- i hate to try to crawl into the mind of some of the comments that have been made. i think that if they had read the report in total and have read some of the charts and pages they couldn't be singing some of the things they are singing, the decisiveness and the description of numbers and fleeted when all the numbers came from them so i am not sure. >> you haven't had a chance -- i've been told the you have only been able to spend one or two minutes with mr. geithner since he took over; is that right? >

. >> special inspector general for the troubled asset relief program, sigtarp.ratt prior to assuming his position, mr. barofsky was a federal prosecutor in the united states attorneys office for the southern district of new york for more than eight years. in that office mr. barofsky was the senior trial counsel and head of the mortgage fraud group which investigated and prosecuted cases of mortgage fraud. also cases of securities fraud with respect to collateralized debt obligations. notably mr. barofsky led the broad investigation into the 55 trillion-dollar credit default swap market and is the recipient of the attorney general's john marshall award for his work. we welcome you, mr. barofsky. you are allowed as much time as he may consume a we generally get people five minutes. we thought about giving you ten minutes but then i thought about the importance and i said as much time as you may consume but try to stay within ten minutes. >> i will, thank you mr. chairman. mr. chairman, ranking member issa, members of the committee, it is an honor and privilege to

guest: sigtarp and a congressional oversight panel are two oversight body specifically created by eesaemergency economic stabilization act, which created tarp. we work closely with the congressional oversight panel. the staffs meet on a regular basis. and they do corning projects. for example, just most recently we have undertaken an audit on the warrants valuation process which will make it complementary project to cop's report that came out last week. host: i am going to have you translate that into non- financial language. what are warrants and how they work? -- how do they work? guest: when the treasury infused capital into banks last fall, and it is continuing in the capital purchase program, in addition to other programs, one of the report -- requirements of eesa mandated treasury take warrants. a warrant is simply the ability to buy stock at a set price. in this way, the taxpayer would at least have the possibility of enjoying some of the upside potential if these companies did in fact improve and their stock price increased. as tarp recipients begin repurchasing their preferred

and i would ask the gao and i'd ask the sigtarp if y'all could take a look at that and perhaps answer how that actually works, if the chair doesn't know. miss warren -- well, i know you don't have a purview. my apologies. >> i'm prohibited from statute from doing that. >> good. well, it's late in the day so obviously i'm missing a few things here. miss warren, you've testified before this committee about the consumer financial protection agency that's last month; correct. >> that's correct. >> and i saw a youtube video and a few thousand others saw that as well in your advocacy for cfpa; right? >> yes, congressman. >> is that part of your official role as head of the congressional oversight panel? >> it's part of my role as professor of harvard law school. >> so that's done through your official resources at harvard? >> yes. and through my personal resources i should say, i wrote a check for it. >> okay. well, youtube is actually pretty cheap so -- >> no, i mean, i wrote a check for the out-of-pocket expenses to be able to produce the video. >> oh, okay. you got a producer. >> well. >