Pelosi Statement in Support of Chairman Frank's Legislation to Strengthen Oversight of TARP

Pelosi Statement in Support of Chairman Frank’s Legislation to Strengthen Oversight of TARP

Friday, January 9, 2009

Contact:Brendan Daly/Nadeam Elshami, 202-226-7616

Washington, D.C. – Speaker Nancy Pelosi issued the following statement today in support of House Financial Services Committee Chairman Barney Frank’s legislation to strengthen accountability and oversight of the Troubled Asset Relief Program (TARP). The legislation, introduced today, also closes loopholes, increases transparency, and requires the Department of Treasury to take significant steps on housing foreclosure mitigation:

"The Bush Administration has ignored the intent of Congress and the demand by American people for strong accountability and transparency in the financial rescue package. That is why, next week, the House will vote on legislation introduced today by Chairman Barney Frank that expands oversight, protects taxpayers’ interests, and makes significant improvements to the law.

"As a condition of receiving taxpayer dollars, financial institutions receiving federal funds must reach an agreement with the government on how those funds will be used and what benchmarks must be met. With stronger executive compensation provisions, we will close loopholes so that taxpayers are protected.

"Nothing in the original legislation prevented the Treasury Department from aggressively stemming housing foreclosures. To ensure that the root cause of our economic downturn is addressed, Chairman Frank’s legislation directs Treasury to devote a minimum of $40 billion from the TARP for several strong and aggressive housing foreclosure mitigation initiatives.

"I look forward to working with the incoming Administration to restore the flow of credit, stabilize markets, make the TARP more accountable, and protect American families from losing their homes."