Right now, when banks pay back TARP funds there's no requirement that the funds be used to pay down the national debt. Without that restriction, Treasury department can reuse that money over-and-over again -- meaning that instead of being an emergency program, TARP could become a perpetual program.
That's why Senator Hatch, along with Democrat Senator Blanche Lincoln, introduced a bill yesterday to close the loophole by requiring that when TARP funds are repaid they are used to pay down the national debt.
Senator Hatch comments:
TARP has become a revolving slush fund for the Obama administration to nationalize our nation's private sector by using taxpayer money to acquire banks, insurance companies and auto manufacturers. When TARP was signed into law last fall, it was authorized to purchase $700 billion in toxic or troubled assets from financial institutions to restore liquidity to the system. Unfortunately, it is now being misused as a go-to solution to address all of our nation's economic ills. That must not be allowed to continue.
This money belongs to the American people, not to the Obama administration to further its far left agenda. Taxpayers have been told to foot the bill for rescuing the financial sector, but now they are being forced to bail out any company this administration deems fit. It is time for Congress to ensure that TARP is used for its intended purpose and to require any money repaid to the Treasury Department be returned to the general fund.
Ten large banks have recently the Treasury Department's approval to repay $68 billion under TARP. It is time to restrict Treasury's access to these funds, thereby ensuring that the taxpayers' investment is protected.
Comments
Post has no comments.