FI Consulting Awarded US Treasury Department TARP Contract

Arlington, VA—The US Treasury Department Office of Financial Stability (OFS) has awarded FI Consulting the contract to perform credit reform modeling and analysis on the Troubled Asset Relief Program (TARP).

“Our work will support the Office of Financial Stability in their effort to develop reliable cost estimates of TARP programs for financial reporting purposes. These cost estimates are critical components of Treasury’s public financial statements and will undergo a high degree of scrutiny,” said Roman Iwachiw, Principal at FI Consulting. “We are excited about the opportunity to help the OFS with this critical project.”

Through this contract, Treasury’s Office of the Chief Financial Officer (OCFO) within OFS was specifically seeking assistance with modeling support, and financial and statistical analysis of the TARP’s equity, direct loan, and loan guaranty programs. The OCFO provides budget formulation, performs annual re-estimates for TARP programs, and performs cost estimates and analyses as requested by senior management within Treasury, OFS, OMB, the House or Senate committees, and the Congressional Budget Office.

Under this contract, FI Consulting’s work will inform OFS’ analysis and reporting to oversight entities and to the Congress. FI was selected to perform this work because of their deep experience in helping Federal agencies assess the costs and risks associated with their credit portfolios.

Iwachiw further commented, “The goal of this type of analysis and forecasting is to provide policymakers with more information and accuracy and, ultimately, more accountability to taxpayers.”

In its role of ensuring the safety and soundness of the U.S. financial system, and in compliance with the Emergency Economic Stabilization Act of 2008 (Act), the Treasury Department has established a program to purchase and insure a variety of troubled assets (TARP). The troubled assets may derive from a variety of industries including banking, mortgage, automotive, insurance, etc.

Consistent with the purposes of the Act, the Treasury’s stated policy goals for the portfolio of troubled mortgage-related assets are “to (1) provide stability and prevent further disruption to the financial markets and banking system, (2) ensure mortgage availability, and (3) protect the interests of taxpayers.” Treasury has also stated that “by acquiring, managing, and orderly liquidating the troubled assets over time, the Treasury seeks to improve the capital positions of financial institutions, reduce risk premiums in the market, improve liquidity and credit extension in the financial system, increase investor confidence, and provide market participants with more price transparency.”