Letter to the Hon. Steven Mnuchin, Secretary of the Department of the Treasury, and the Hon. Jerome Powell, Chairman of the Board of Governors of the Federal Reserve - Congressional Oversight Commission Publishes Initial Report

Letter

Dear Secretary Mnuchin and Chairman Powell:

Please find enclosed a copy of the first report of the Congressional Oversight Commission (the "Commission"). The Commission was created by the CARES Act to conduct oversight of the Treasury Department (the "Treasury") and the Federal Reserve's implementation of Division A, Title IV, Subtitle A of the CARES Act ("Subtitle A").

Subtitle A provided $500 billion to the Treasury to help support and stabilize the economy by lending and providing liquidity to businesses and state and local governments. Of this amount, $46 billion is set aside for the Treasury to provide loans or loan guarantees to the airline industry and businesses critical to maintaining national security. Any unused portions of this $46 billion, and the remaining $454 billion, may be used to support emergency lending facilities established by the Federal Reserve.

This report reviews actions by the Treasury and the Federal Reserve implementing Subtitle A to date, including designing lending programs and facilities. It also outlines some preliminary questions based on those actions that we intend to examine. These questions are not meant to be comprehensive and will not prevent the Commission from reviewing other matters in the future.

We look forward to meeting soon to discuss these matters.

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