Report Urges Greater Oversight of Small-Bank Aid Program
In a report on the Community Development Capital Impact (CDCI) Program, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) urged the Treasury to tighten oversight of recipients. CDCI injected $570 million into 84 CDFI-certified banks and credit unions serving minority and low income communities. The inspector general's report faulted the Treasury for not doing enough to ensure that these lenders were using their federal money to boost lending to local businesses. The report found that eight banks and credit unions have never returned surveys reporting on how they used the funds. In nine instances, institutions missed dividends or interest payments, but six of those lenders are now current in their payments.