SIGTARP Scrutiny Goes Beyond Tarp Matters

Originally published in the AMERICAN BANKER

Directors and officers of banks, already under scrutiny from the regulators and law enforcement agencies traditionally charged with examining their actions, should take heed of a new player on the scene: the Office of the Special Inspector General for the Troubled Asset Relief Program. SIGTARP has already been involved in a number of significant financial institution investigations and appears poised to increase the scope of its activity.

Contrary to popular belief, the agency's mandate is not confined to those crimes which relate directly to the request for or use of Tarp funds.  Even in its relatively short existence, SIGTARP's activities have made clear that it believes only one criterion need be met for the agency to claim jurisdiction: application for Tarp funds.