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Hoekstra: Economic Rescue Package Should Not Fund Strategic Positioning, Bonuses

Washington, Oct 30 -

U.S. Rep. Pete Hoekstra, R-Holland, on Thursday expressed concern that financial institutions were misusing taxpayer funding included in the economic rescue package passed by Congress.



“The money included in the economic rescue package was never intended for strategic positioning or bonuses for executives and employees of organizations that have underperformed,” Hoekstra said. “Any organization in need of a bailout should not reward its executives and employees for placing themselves in such a position.”



Hoekstra raised the issue following media reports that distressed financial institutions were financing mergers and acquisitions with taxpayer funds provided in the recently passed Troubled Assets Relief Program as well as providing bonuses and raises for their executives and employees.



“Congress never intended such expenditures when it passed the economic relief package,” Hoekstra said. “It was designed to stabilize the economy and minimize the impact on small businesses and employees on Main Street America, not as a tool to reshape the credit market and reward failure.”