GAO says TARP transparency lagging

WASHINGTON, Jan. 30 (UPI) -- The U.S. Government Accountability Office Friday said the Treasury Department is improving the transparency of its massive Troubled Asset Relief Program.

Treasury has taken "important steps" to implement the watchdog agency's nine earlier recommendations to better monitor TARP funds, but has not fully addressed eight of the proposals, the GAO said.

"Treasury has continued to develop a system for detecting noncompliance with key requirements of the program but has not yet finalized its plans," the GAO said in a statement. "Further, Treasury has made limited progress in formatting articulating and communicating an overall strategy for TARP."

The agency said fully addressing the GAO recommendations would "ensure greater accountability and transparency and better enable Treasury to effectively manage TARP."

The GAO said the Treasury didn't disagree with the findings of the report and was continuing its work. However, it warned that the department's lack of a clear vision was hampering its communications with Congress, the financial sector and the public.

The report said as of Jan. 23, the Treasury had dispersed nearly $294 billion of the $700 billion in TARP funds with $194.2 billion used to buy preferred stock in 317 financial institutions.