US Senate Panel OKs Softer TARP Disclosure Rules Than House

A U.S. Senate spending panel Thursday approved tepid disclosure requirements for the Treasury Department related to its efforts to stabilize the financial markets, falling far short of tougher conditions on companion legislation in the House.

The Senate Financial Services Appropriations Committee directed the Treasury to develop a more effective strategy for communicating its activities through the Troubled Asset Relief Program, but didn't impose any specific steps the Treasury must take to do so.

The House Appropriations panel, on the other hand, Tuesday approved legislation that sets a deadline of Dec. 1 by which the Treasury must inform lawmakers of a number of crucial aspects to the TARP program and other financial-market interventions.

These include telling Congress whether it intends to make future investments in banks, insurers, auto makers and other firms, how much it ultimately expects the program to cost taxpayers, and when any outstanding loans are likely to be repaid.

The House also asks for the same level of disclosure regarding the Treasury bailouts of Fannie Mae (FNM) and Freddie Mac (FRE) and any other market rescue activities it has been involved in.

The Senate language is included in a spending bill to fund the Treasury and other government agencies in fiscal 2010.

It also instructs the Treasury to request more detailed reporting from firms that have received cash infusions in order "to ensure maximum transparency of the program."

Once the House and Senate approve their respective versions of the legislation, lawmakers from both chambers will have to meet to reach a final agreement.

-By Corey Boles, Dow Jones Newswires; 202-862-6601; [e-mail]