TARP Reform to Ensure Accountability and Transparency

Congresswoman Dina Titus of Nevada’s Third District voted to enforce strict accountability and transparency by reforming the Troubled Asset Relief Program (TARP).  Since the TARP was created by the Emergency Economic Stabilization Act, the Bush Administration has injected $350 billion into banks with no accounting for how they have spent the money and has failed to adequately use TARP funds to address the mortgage crisis.

 “Under President Bush and the Treasury Department, $350 billion have been spent with no accountability or explanation of where the money went.  This is simply unacceptable,” Congresswoman Titus said.  “If another $350 billion is necessary to restore the economic health of our country there must be strict guidelines on how the money can be spent.  With Nevada’s foreclosure rate the highest in the nation, it is critical that stemming the tide of foreclosures is an integral part of the TARP.   It is also essential that there are accountability and transparency so that taxpayers know where the money is going and that it is being used effectively.”

The TARP Reform and Accountability Act, which passed by a vote of 260 to 166, mandates that at least $40 billion go toward helping homeowners and addressing the mortgage crisis that is at the root of the economic crisis.  The legislation also requires banks to report how they are spending the money they receive from the government and limits executive bonuses for firms that receive TARP funds.

Titus Statement on Additional TARP Funds

Congresswoman Dina Titus of Nevada’s Third District voted against a measure to provide the Obama Administration with the second $350 billion from the Troubled Asset Relief Program (TARP).  Titus voiced concern that the recently House-passed TARP Reform and Accountability Act had not yet passed the Senate and been signed into law, and critical safeguards to protect taxpayer dollars were not in place.

“Under the Bush Administration the money that was originally intended to go toward addressing the foreclosure crisis was instead funneled into banks that have done nothing but horde the money, failing to lend and get the economy moving again,” Congresswoman Titus said.  “My constituents in the Third District who have been hit hardest during the foreclosure crisis cannot afford for that to happen again.  While I have confidence that President Obama intends to responsibly use the remaining TARP funds, I cannot support releasing the funds until there are sufficient safeguards to ensure accountability and transparency.  It is critical that there is legislation requiring this money go toward reducing foreclosures and keeping people in their homes.”

Yesterday, the House passed the TARP Reform and Accountability Act, which mandates that at least $40 billion goes toward helping homeowners and addressing the mortgage crisis that is at the root of the economic crisis.  The legislation, which Titus supported, also requires banks to report how they are spending the money they receive from the government and limits executive bonuses for firms that receive TARP funds.