November 13, 2008

Washington, DC – Rep. Darrell Issa (R-CA), in a letter sent today to Treasury Secretary Henry Paulson, called on the Department of the Treasury to prevent funds intended to stimulate the U.S. economy from being used for foreign acquisitions.

“The use of taxpayer funding for the acquisition of foreign entities is a crime against the American people that will further erode their faith in the federal government and our economic system,” wrote Issa who cited press reports that U.S. financial institutions receiving bailout funds are in the process of making loans to foreign companies for corporate acquisitions.

Issa, a leading opponent of the Bailout Plan who had offered an amendment intended to prioritize bailout funds for U.S. financial institutions within the United States that was rejected by Democrats on the House Rules Committee, added that it makes little sense for U.S. taxpayer dollars to be used to stimulate foreign economies. 

“U.S. businesses are struggling to get credit and we’re seeing taxpayer funds that were supposed  to be used to acquire troubled mortgage assets being used for purposes Congress never intended,” added Issa. 

“The rush to pass this legislation without proper hearings and an open debate has resulted in troubling flaws that are becoming more and more apparent.  These aren’t private funds that companies should be free to use however they choose, but public dollars that were intended for limited purposes.”

A copy of the letter to Paulson is below.

 

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