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For Immediate Release
January 21, 2009
Washington, D.C. – After
voting to bring tougher accountability standards to the Trouble Asset
Relief Program (TARP) Congressman Brian Baird (D-WA-03) released the
following statement:
“Today Congress took decisive action that
will bring effective supervision to the Troubled Asset Relief Program.
Although former President Bush is now gone, the problems created by his
administration remain.
Several months ago the Bush
Administration came to Congress with what essentially amounted to a
ransom note: a request for 700 billion dollars with no regulation or
accountability. That idea was a non-starter in Congress. Together
Democrats and Republicans crafted a package that would protect the
taxpayer, and hold the administration accountable.
That
legislation included tough language that I fought for that ensures
taxpayers will be paid back. Five years from now, if the taxpayers are
still in the red from these investments, the President is required to
submit a plan to impose fees or taxes on Wall Street to recoup those
loses. However, if these investments turn a profit, the taxpayer will
share in them.
Now we’ve come to find out that the Bush
Administration ignored many of the accountability rules put in place by
Congress. They mismanaged the money, and in many cases, have no idea
where it was spent. Meanwhile, banks and other institutions have
refused to disclose how they’re spending the taxpayers’ money. That is
unacceptable, and it stops today.
This bill will ensure this
money will be spent responsibly by mandating that banks report how
government funds are being spent, and places tougher limits on
executive compensation. More importantly, it will require a large
portion of the TARP funds be directed to distressed homeowners. The
roots of this financial crisis are found in the housing market.
Foreclosures continue to skyrocket, and until we can find a way to help
people stay in their homes, we won’t be able to stop our economy from
continuing to hemorrhage.
Even with this legislation, our
economy will remain in a very fragile state. The conditions created by
excessive debt on both the federal and personal level, our rising trade
deficit, and the rising costs of energy all suggest that we will have
to continue to endure some painful economic times for some time to
come.”
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