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 Lawmakers from both sides of the aisle blasted the Treasury Department Wednesday for failing to responsibly administer the $700 billion Troubled Asset Relief Program and for failing to address foreclosures and enforce lending obligations on banks.
But before getting down to the business at hand, Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, used his opening statement to address concerns about congressional turf. Frank attempted to dismiss concerns that his committee is attempting to shut out other lawmakers, particularly those on the House Committee on Oversight and Government Reform, from overseeing the rescue package. Frank was referring to a published report that said Rep. Darrell Issa, R-Calif., the incoming ranking member on the Oversight Committee, on an open mike leaned over to incoming chairman, Rep. Edolphus Towns, D-N.Y., and said he wanted to talk about how they could keep that committee from "getting screwed" by the Financial Services Committee. Frank said he was not trying to "screw his committee out of doing their job. Nothing could be further from the truth." "I have at no point ever asked any member of that committee to not do anything," Frank said. "I don't want to worry anyone's Christmas." Getting back to business, Frank lashed out at the Treasury's refusal to use TARP funds to help stem foreclosures "undermines the intent of the bill. What troubled me was when Treasury was asked by the Government Accountability Office, 'What are you doing to ensure banks are lending?' they appeared to be saying, 'We're not going to try to find that out.' " The committee is hearing testimony from the bailout's point man Neel Kashkari, Acting Comptroller General Gene Dodaro and two members of a congressional oversight panel: Harvard law professor Elizabeth Warren and Rep. Jeb Hensarling, R-Texas, on the results of two reports on how Treasury has so far conducted its bailout program. The Congressional Oversight Panel's report on the Troubled Asset Relief Program was submitted to Congress Wednesday, and the Government Accountability Office's report was delivered to lawmakers last week. Spencer Bachus, R-Ala., the ranking member on the committee, said taxpayers have a right to know how their tax dollars are being used. "The taxpayer has the right to expect that you use the same standard of care as when you were working for Goldman Sachs and answering to your shareholders and investors," Bachus said. "The detailed explanations we've received from the GAO stand in stark contrast to the lack of information we've received from Treasury or financial institutions that received funds from TARP." Rep. Maxine Waters, D-Calif., was incensed that Treasury was resisting using any money from the TARP to reduce foreclosures as Congress specifically directed the department to do. Waters said she has "seen nothing" from Treasury that gives her confidence in their ability to manage the bailout. Waters was incensed and said she regrets attempting to cooperate with Treasury in giving them flexibility to respond to the economic crisis. "I also regret telling my colleagues, including members of the Congressional Black Caucus and the Hispanic Caucus, that I trusted Treasury would do what they promised to do," she said. Turning to Frank Waters, she said: "I'm not even going to cooperate with you anymore. I just want you to know as much as I respect you ... you've been too kind, you've been too good and you've allowed them to walk all over us. We've got to do something to make sure the money we're signing off on is used appropriately to help the consumers and homeowners in this country." Rep. Bill Pascrell Jr., D-N.J., also criticized how the funds have been used. "TARP funds have been greatly mismanaged to date, and they have not been made to help consumers purchase the goods that they need." Pascrell said new cars were piling up on the docks in New Jersey, but people who want to buy them can't because consumers "don't have access to the credit they need." - Donna Block
See a summary of the GAO report (pdf) CategoriesComments
From: John Gerena ,
Paulson should have stayed with the original plan of buying up truobles assets. It is called TARP = I do believe we need to help homeowners and make it possible for people to refinance and purchase homes. When people are spending money main street will come back. It would have been better to bail out the little guy that has small business that employee everyone on main street than the banks on Wall Street that are laying everybody off.
Posted on:
December 10, 2008 3:37 PM
From: John Gerena ,
What about my bailout?
Posted on:
December 20, 2008 10:03 PM
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The politicians must see this as a game. The Paulson plan was rejected (by the House), porked up and then passed. How can they complain about poor implementation?