The House of Representatives tonight approved an amendment authored by U.S. Rep. Steven C. LaTourette (R-OH) that will force banks that receive federal bailout money to report new lending in their quarterly reports.

The LaTourette amendment, which passed by a 403-0 vote with one member voting present, was the only amendment allowed to H.R. 7321, the Auto Industry Financing and Restructuring Act, which will provide up to $14 billion in federal loans to the Big Three automakers.  Rep. Al Green (D-TX) was also a sponsor of the amendment.

LaTourette said he is concerned that banks are not lending money as promised under the Treasury’s massive $700 billion bailout, and that even those who choose to make new loans will not have to report them under current law.

“This money was supposed to be used to unfreeze credit and increase lending and instead it’s being hoarded, used to buy up other banks and maybe even pay executive bonuses,” LaTourette said. “This amendment will effectively force the banks to show us the lending.”

 A recent Government Accountability Office (GAO) report stated that only two of the first eight banks that got $115 billion through the Capital Purchase Program intend to publicly document how the money is spent.  Some banks have received as much as $25 billion with few strings attached.

“…institution officials noted that (federal bailout) money is fungible and that they did not intend to track or report CPP capital separately,” the GAO report stated, adding that federal regulators have not set up any rules to monitor participating institutions’ use of the funding.

 The report went on to state that “unless Treasury does additional monitoring and regular reporting, Treasury’s ability to help ensure an appropriate level of accountability and transparency will be limited.”

 U.S. Rep. Betty Sutton (D-OH) helped shepherd the LaTourette amendment through the Rules Committee.

 “I am happy that as a member of the Rules Committee I was able to work with Congressman LaTourette to support this critical amendment and ensure it was brought to the House floor today. I commend Congressman LaTourette on his leadership and initiative in drafting this important amendment,” Sutton said. “This amendment will create more transparency as we take action to bolster the economy and spur job growth throughout the country. We must have greater oversight of how our taxpayer money is spent. Further, we must also ensure that the funds are used to improve lending to American families and small businesses throughout the country.”

 LaTourette opposed the bailout and has been highly critical of Treasury Secretary Paulson, who told Congress he would buy up toxic mortgage assets and instead scrapped that plan and started buying equity stakes in banks, something he’d told the Senate he would not do because it would be a sign of failure. 

 LaTourette said Paulson and federal regulators have used their unfettered authority to pick winning and losing banks, and steered $7.7 billion in Troubled Asset Relief (TARP) funding to Pittsburgh-based PNC bank so it can buy Cleveland’s National City Bank at a fire-sale price.  PNC will not only get its share of TARP funding, but will get National City’s after the merger is completed.

  LaTourette said his amendment will force transparency.  He said he doesn’t buy the banks’ argument that capital is capital and it will be too cumbersome to report how billions in taxpayer funding is being spent.

 “I don’t think it’s adequate to haul bank CEO’s to Capitol Hill and allow them to say we’re making loans or intend to make loans,” LaTourette said.  “They need to document that they’re making loans.  I believe if they’re forced to report new lending, they will make new lending a priority.”

 LaTourette said banks’ quarterly filings are available online at www.sec.gov