• Home
• About Amy
• Serving Minnesotans
• About Minnesota
• Issues/ Legislation
• Media Center
• Contact Amy
• FAQ

News Releases

Klobuchar Works to Protect Taxpayer Investments in Institutions Supported by TARP

Calls for passage of bipartisan bills to maximize taxpayer returns of TARP investments

July 24, 2009

Washington, D.C. – U.S. Senator Amy Klobuchar today pushed for two bipartisan bills to maximize the returns on taxpayer investments in institutions supported by the Troubled Asset Relief Program (TARP) and to provide necessary public oversight by establishing an electronic database to track how the funds are being used by financial institutions.

Klobuchar is sponsoring S.1280, the TARP Recipient Ownership Trust Act of 2009, with Senators Bob Corker (R-TN), Mark Warner (D-VA) and Robert Bennett (R-UT), which would create a private market trust to maximize returns on taxpayer investments in institutions aided by TARP.  The legislation would also provide a responsible exit strategy from government ownership of TARP-recipient companies.

“We need to protect Main Street, not Wall Street,” said Klobuchar.  “The American people have had to clean up the damage caused by a group of irresponsible financial institutions.  Taxpayers deserve to get the most from their investments, and this bipartisan legislation will make sure they do.”

This bill would apply to companies in which the government holds 20 percent or more of the common equity as a result of TARP, and would move this stake into a newly created Limited Liability Corporation (LLC).   The LLC would be managed by three independent, non-political trustees appointed by the President.  Each trustee would have a fiduciary responsibility to the taxpayers to maximize returns on investments.

Klobuchar also is sponsoring S. 910, the TARP Transparency Act, with Senators Mark Warner (D-VA), Mel Martinez (R-FL), Sherrod Brown (D-OH), Sam Brownback (R-KS), and Jon Tester (D-MT) to provide greater oversight of TARP funding by creating a centralized electronic database to help track how funds are being used by financial institutions. 

“I strongly believe that we need transparency and other safeguards to protect American taxpayers’ money,” said Klobuchar.  “This will create a full accounting of the funds financial institutions have received and provide the oversight we deserve.”

Specifically the bill directs the Secretary of the Treasury to provide to the Special Inspector General of the Troubled Asset Relief Program (TARP), the Comptroller General, and the Congressional Oversight Panel ongoing, continuous, and close to real-time updates of the status of the use of funds that have been distributed.  

###