Politics

On The Request for Second $350 Billion in TARP Funds

By Speaker Pelosi

Congress will soon receive a formal request from the Bush Administration to release the second half of the financial rescue funds. The request comes the same week the House will vote on Chairman Barney Frank?s reform and accountability legislation to address the many shortcomings in the Bush Administration?s handling of the first $350 billion in TARP funds, used largely to bolster the balance sheets of banks. Millions of Americans have lost their jobs or face the prospect of foreclosure, and it is past time that we helped these families bolster their balance sheets.

Chairman Frank?s legislation makes significant changes to the financial rescue package ? from requiring strengthened oversight and transparency to additional foreclosure relief. At a minimum, the legislation will require $40 billion from the TARP for initiatives to keep families in their homes.

The legislation will require that financial institutions specify how they will spend taxpayer dollars, ensuring that the second $350 billion in TARP comes with clear and specific strings attached.

Congress and the incoming Obama Administration will work together to protect taxpayers, address the foreclosure crisis, and to bolster our economy.

Full post as published by The Gavel on January 12, 2009 (boomark / email).