Fortenberry Presses Treasury Official on Oversight

Washington, DC - Congressman Jeff Fortenberry today questioned the U.S. Treasury Department about the Troubled Asset Relief Program (TARP), the $700 billion federal bailout of corporations and other financial entities.  His inquiries about regulatory reform and oversight were part of a hearing of the House Oversight and Government Reform Subcommittee on Domestic Policy.

“After $700 billion of taxpayer liability, it is critical for Congress to review the Treasury Department' program,” said Fortenberry.  “Beyond review and scrutiny of these obligations, we must guard against further financial discord and vulnerability caused by banks and financial entities that are deemed ‘too big to fail.’

“To restore stability to our financial system, we should return to a model based on the responsibility of community financial and lending institutions, which by their proximity best know the needs of their communities and are in their very essence more transparent and accountable.  Any debate on regulatory reform should carefully consider this concept.”

In response to Congressman Fortenberry' line of questioning, a Treasury Department official agreed that there are vulnerabilities in the financial sector due to financial institutions that have grown too large, and that thoughtful regulatory reform must be pursued.

Since October 2008, TARP funds have been invested in 498 banks nationwide.  Full video of Congressman Fortenberry' questions and Treasury Department testimony may be viewed at  http://www.youtube.com/watch?v=Bt0TMyGttyc.

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