House Republican Leaders: Treasury & Fed Should Not Request Remaining TARP Money Until Questions are Answered for Taxpayers
GOP Leaders: “The government has burned through nearly $350 billion of TARP funds and is pledging trillions of dollars more through other programs, yet little is understood about how these investments are contributing to the nation’s economic recovery.”
Washington,
Dec 3, 2008 -
As Treasury Department officials determine whether to ask Congress to release further taxpayer dollars in the Troubled Assets Relief Program (TARP), House Republican leaders today sent a letter to Treasury Secretary Henry Paulson and Federal Reserve Board Chairman Ben Bernanke, outlining concerns about the program’s lack of transparency to date.
“The government has burned through nearly $350 billion of TARP funds and is pledging trillions of dollars more through other programs, yet little is understood about how these investments are contributing to the nation’s economic recovery,” the GOP leaders wrote. “Even direct inquiries from Congress seeking answers on behalf of concerned taxpayers do not appear to have been taken seriously. For example, more than a month ago, on October 29, the House Republican Leader sent a letter to the Treasury Secretary questioning the use of TARP money for executive bonuses and bank acquisitions by other banks, as revealed by various news organizations. It was only today that Treasury provided a response, and the response did not answer the questions that were asked in the Leader’s letter.”
The leaders continued, “Such opaqueness is unacceptable, particularly if it is your intention to ask Congress to release the remaining $350 billion in taxpayer funds that were conditionally authorized by Congress this fall. It is our strongly held view that before any such request is made, the American people need satisfactory answers to a number of important questions.”
Questions the leaders posed to Secretary Paulson and Chairman Bernanke include:
- What is your exit strategy for the government’s sweeping involvement in private business?
- If given the authority for the additional $350 billion of TARP funding, what is your strategy for maximizing its effectiveness?
- With regard to the various lending facilities established by the Federal Reserve since the financial crisis began, how will you provide greater transparency about loans, the collateral, the risk, the kinds of institutions involved, and the realistic expectations for repayment?
NOTE: The leaders’ letter today to Secretary Paulson and Chairman Bernanke is available here. The letter sent by House Republican Leader Boehner to Secretary Paulson on October 29 is available here.
