Department+of+Treasury


 ===Mission Statement: Serve The American people and strengthen national security by managing the U.S. government's finances effectively, promoting economic growth and stability, and ensuring the safety, soundness, and security of the U.S. and international finance systems. ===


===History: The Department of the Treasury's primary function is the management of money resources in the United States. Their tasks include regulating national banks, determining international economic policies, collecting income taxes, issuing securities, reporting the daily financial transactions, and manufacturing coins or bills. First established as an executive department by the First Session of Congress in 1789, the Department of the Treasury carred out most of their functions before the Declaration of Independence was even signed. The functions of the department have expanded over the years to meet our nation's needs. Today, the Department of the Treasury continues to be the primary department for all financial revenue. === 

Financial Instability
 04/23/2009: "We must keep at the process of repair and reform" Financial Times by Timothy Geithner

Summary: The economic situation this year is challenging and has fallen the most in the past 6 decades. Because of this, a Group of 20 nations met in early April to come up with a strategy to restart the economic growth and secure financial stability for the future. They must follow through with the mutual fiscal, monetary and financial policies for it to work. It is an aggressive policy but is necessary to stabilize and repair the system, as well as to restore credit flows for businesses and consumers. This response is estimated by the International Monetary Fund at $5,000bn overall and is active to keep the budget on track to allow these good intentions. Immediately $250bn has been put into place, as well as reshaping the New Arrangements to Borrow. These steps are to be followed out as planned with a speedy U.S. action, as written by President Barack Obama in a letter to Congressional leaders. In recent weeks, there has been some encouraging sings that the global economic downturn may be slackening. Some financial markets have improved but real progress requires more time and challenges. It is critical that we continue to act on a timely manner to strengthen the global recovery with this agreed strategy. In recent weeks, there have been some encouraging signs that the global economic downturn may be looking up, but challenges still remain.

03/27/2009: "This Time, Geithner’s Plan for Banks Makes Sense" New York Times by Joe Nocera

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Geithner has been under intense pressure lately, but his recent plans show a positive outlook. His new plan would create incentives for private investors to put up small amounts of equity to buy toxic assets from the banks’ balance sheets. The government will also be putting in debt, at ratios that could reach as high as six to one — and will provide guarantees against most of the potential losses. The Treasury estimates that the program “will generate $500 billion in purchasing power to buy legacy assets — with the potential to expand to $1 trillion over time.” This new plan has much speculation as to if it really will find price discovery or if it was just use tax money to "paper over" the losses and continue to pile up debt. The plan is not guaranteed to work, but could in the best case, make our banks a little healthier and a little better able to lend credit. ===== 

03/23/2009: "Treasury Details Plan to Buy Risky Assets" New York Times by Edmund L. Andrews and Eric Dash

Obama has a new plan to free the nation's bank from the bad home loans and mortgage securities but it puts taxpayers at risk. Up to $2 trillion in real estate assets that have been weighing down banks could be bought up in the three programs that were unveiled. Most are excited about this plan and optimistic that it will work, as well as several major investment firms have said they will participate. The administration outlined a three-part investment program that offers private investors vast amounts of taxpayer financing for every dollar that they put down of their own money. This is a large risk taken by the government but the Federal Deposit Insurance Corporation will oversee the program to make sure it goes smoothly. In addition to the F.D.I.C.'s program, the Treasury would help finance a series of public-private investment funds to buy up unwanted mortgage-backed securities or mortgages that have been packaged into bonds with a credit rating.



To the President: Based on my research on the financial instability of our nation, I suggest continuing the process of repair and reform to help the United States' economic status recover. It is absolutely necessary that bad credit is relieved, as well as less pressure on the taxpayers' wallets. If there is more money in these citizen's pockets, the economy can be stimulated once again.  ===  Stimulus Bill Contains Strict New Executive Compensation Restrictions for TARP Participants 2/17/2009 By: McGuire Woods  ===

Under the American Recovery and Reinvestment Act of 2009 (ARRA) many of the executive restrictions of the Emergency Economic Stabilization Act of 2008 (ESSA) have been replaced. Along with doing this, the act goes far beyond the compensations for TARP participants set forth by the Treasury Department. Since the ARRA’s restrictions are retroactive, they apply to all TARP participants, whether or not they have received compensation prior to the act. This differs greatly from the usual operating guidelines of the Treasury, as they usually state that the guidelines would only apply to those companies who have received money from TARP only after the guidelines have been set in place. For further explanation, a chart of the comparisons between the Acts can be found at []

Message from Congresswoman Tammy Baldwin of Wisconson 2/26/2009
The economy is the worst it’s been since the great depression. The American Recovery and Reinvestment Act of 2009 (ARRA) is designed to help our economy and turn it into a center of long-term growth and stability. This act is meant to improve upon four areas of great importance within our country. These include

 Energy Independence -     3 year extension on the Production Tax Credit (PTC) for energy derived from wind, electricity derived from biomass, geothermal, hydropower, landfill gas, and waste-to-energy  Health Care -   <span style="mso-ascii-font-family: Cambria; mso-ascii-theme-font: major-latin; mso-hansi-font-family: Cambria; mso-hansi-theme-font: major-latin;"> $87 Billion to help states with Medicaid Education -   $53.6 billion for State Fiscal Stabilization Fund -   Increases higher education tax credit to a max of $2500

Infrastructure -   Reduces taxes for 95% of American workers - Making Work Pay Tax Credit - First Time Home Buyer Tax Credit - Weatherization Tax Credit

Stimulus Act Helps People in Need as well as the Economy
The ARRA not only provides for a stimulus boost to the economy to keep it running smoothly and efficiently, but provides many benefits to everyday Americans, some of which include:

<span style="mso-bidi-font-weight: bold; mso-ascii-font-family: Cambria; mso-ascii-theme-font: major-latin; mso-hansi-font-family: Cambria; mso-hansi-theme-font: major-latin;"> Extension of Qualified Individual Program

Premium Assistance for COBRA Beneficiaries

Increase in Federal Share of Medicaid Costs <span style="mso-ascii-font-family: Cambria; mso-ascii-theme-font: major-latin; mso-hansi-font-family: Cambria; mso-hansi-theme-font: major-latin;">

Reccomendation to the President
Based on the research that I have done, and the articles I have read, it is my opinion that the ARRA should continue as planned. It is an Act of many well thought out and useful legislative properties, such as the Medicare programs, which I trust will be used in such a manner as to bring this country out of a recession and into a period of economic growth.

Bureau's of the Treasury Dept.

 * <span style="font-family: 'Arial','sans-serif';">[|**The Alcohol and Tobacco Tax and Trade Bureau (TTB)**] is responsible for enforcing and administering laws covering the production, use, and distribution of alcohol and tobacco products. TTB also collects excise taxes for firearms and ammunition. ||||  ||
 * <span style="color: #426696; font-family: 'Arial','sans-serif';"> ||
 * <span style="font-family: 'Arial','sans-serif';">The [|**Bureau of Engraving & Printing (BEP)**] designs and manufactures U.S. currency, securities, and other official certificates and awards. ||  ||
 * <span style="font-family: 'Arial','sans-serif';">The [|**Bureau of the Public Debt**] borrows the money needed to operate the Federal Government. It administers the public debt by issuing and servicing U.S. Treasury marketable, savings and special securities. ||  ||
 * <span style="font-family: 'Arial','sans-serif';">The [|**Community Development Financial Institution (CDFI) Fund**] was created to expand the availability of credit, investment capital, and financial services in distressed urban and rural communities. ||  ||
 * <span style="font-family: 'Arial','sans-serif';">The [|**Financial Crimes Enforcement Network (FinCEN)**] supports law enforcement investigative efforts and fosters interagency and global cooperation against domestic and international financial crimes. It also provides U.S. policy makers with strategic analyses of domestic and worldwide trends and patterns. ||  ||
 * <span style="font-family: 'Arial','sans-serif';">The [|**Financial Management Service (FMS)**] receives and disburses all public monies, maintains government accounts, and prepares daily and monthly reports on the status of government finances. ||  ||
 * <span style="font-family: 'Arial','sans-serif';">The [|**Inspector General**] conducts independent audits, investigations and reviews to help the Treasury Department accomplish its mission; improve its programs and operations; promote economy, efficiency and effectiveness; and prevent and detect fraud and abuse. ||  ||
 * <span style="font-family: 'Arial','sans-serif';">The [|**Treasury Inspector General for Tax Administration (TIGTA)**] provides leadership and coordination and recommends policy for activities designed to promote economy, efficiency, and effectiveness in the administration of the internal revenue laws. TIGTA also recommends policies to prevent and detect fraud and abuse in the programs and operations of the IRS and related entities. ||  ||
 * <span style="font-family: 'Arial','sans-serif';">The [|**Internal Revenue Service (IRS)**] is the largest of Treasury's bureaus. It is responsible for determining, assessing, and collecting internal revenue in the United States. ||  ||
 * <span style="font-family: 'Arial','sans-serif';">The [|**Office of the Comptroller of the Currency (OCC)**] charters, regulates, and supervises national banks to ensure a safe, sound, and competitive banking system that suppors the citizens, communities, and economy of the United States. ||  ||
 * <span style="font-family: 'Arial','sans-serif';">The [|**Office of Thrift Supervision (OTS)**] is the primary regulator of all federal and many state-chartered thrift institutions, which include savings banks and savings and loan associations. ||   ||

Two Questions: 1. What is the primary function of the Department of the Treasury? 2. What are the two major components of the ARRA?