Washington, D.C.-Congressman Neugebauer, Deputy Ranking Member on the House Financial Services Committee, released the following statement after Treasury Secretary Timothy Geithner announced plans to extend the $700 billion TARP until next October:
 
“I am disappointed to hear Secretary Geithner’s plan to extend the Troubled Asset Relief Program (TARP). The longer we extend this program, the bigger a slush fund it turns into and the greater the losses will be for the taxpayers.

“Instead of more bailout spending, we need to focus our efforts on winding down these massive government interventions.  While challenges remain in our financial system and economy, an emergency bailout fund is no longer needed.”

“When TARP was enacted, the public debt limit increased to $11.3 trillion.  Since January, the national debt has increased more than $1.4 trillion, and Congress may soon be asked to vote on a debt limit increase of up to $13.2 trillion, the fourth debt limit increase since July 2008. With the extension of TARP, we are simply piling up more debt that will add billions to the taxpayers’ tab.”

NOTE:  On Monday, Congressman Neugebauer sent a letter to Treasury Secretary Timothy Geithner urging him to end TARP, as well as ensure all TARP repayments, dividends, and other income go toward debt reduction rather than more spending.