News Release from Barney Frank
Congressman, 4th District, Massachusetts
2252 Rayburn Building · Washington, D.C. 20515 · (202) 225-5931
October 31, 2008
For Immediate
Release:
Contact:
Steve
Adamske
(202)
225-7141
or Heather
Wong (202) 226-3314
Frank Statement on TARP
Provisions
Washington, DC
– House Financial Service Committee Chairman Barney Frank (D-MA) today released
the following statement regarding provisions in
TARP:
“I am deeply disappointed that a number of
financial institutions are distorting the legislation that Congress passed at
the President’s request to respond to the credit crisis by making funds
available for increased lending. Any use of the these funds for any purpose
other than lending—for bonuses, for severance pay, for dividends, for
acquisitions of other institutions, etc.-- is a violation of the terms of the
Act.
“I appreciate the fact that the Secretary of
the Treasury has reemphasized that increased lending activity is the only
legitimate purpose for taxpayer funding of these institutions. He must make it
absolutely clear to any participating entity that the federal government will
insist on compliance.
“On November 12th and November
18th the House Financial Services Committee will hold oversight
hearings on legislation Congress has passed to cope with the financial crisis.
It is very important if Congressional and public support for this program is to
continue that we receive assurances at those hearings that the money being
advanced will be used only for relending and for no other purpose.”
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