Letter to Colleagues

Letter

Letter to Colleagues

WITH ANONYMOUS HOLD EXPECTED TO BE LIFTED, SCHUMER, McCASKILL URGE SPEEDY SENATE CONFIRMATION OF NOMINEE TO OVERSEE $700B RESCUE PLAN

Appointment of Veteran NY Prosecutor Neil Barofsky Had Been In Limbo For Two Weeks, But Anonymous Senator's Objection Appears Resolved

In Letter to Colleagues, Senators Urge Vote Next Week, Saying Watchdog Badly Needed—Earlier This Week, GAO Report Panned Lack of Oversight Of Rescue Plan

U.S. Senators Charles E. Schumer (D-NY) and Claire McCaskill (D-MO) announced Thursday that the hold placed by an anonymous senator on the nomination of Neil Barofsky to be the top watchdog for the $700 billion rescue plan appears to have been lifted. In a letter to their colleagues released Thursday, Schumer and McCaskill urged that the nomination proceed to a Senate vote next week and said it should not be slowed by any further objections, suggesting that any protests over the implementation of the rescue plan should be reserved for a potentially forthcoming debate over the authorization of the second $350 billion.

"For those concerned about whether taxpayer dollars are being well spent, putting an independent watchdog in place is an important part of the solution," the senators wrote. "Any Senator with concerns about TARP should bring them to light as we discuss the appropriateness of releasing additional funds. Holding up this nomination will not solve any problems and will certainly create new ones. Confirming Neil Barofsky is essential, time is short, and the stakes are high. We therefore ask your help in moving this nomination by unanimous consent next week."

On Tuesday, the Government Accountability Office, as part of a congressionally mandated 60-day review of the Troubled Asset Relief Program (TARP), criticized a general lack of oversight of the rescue plan. One factor in this lack of oversight is the fact that the inspector general's post remains vacant. Congress mandated the creation of the post in the bill authorizing the $700 billion in rescue funds. The intention was to establish an independent watchdog that could investigate improper use of the rescue funds and make criminal referrals where necessary.

Neil Barofsky, a veteran prosecutor in the U.S. Attorney's office in New York's Southern District, was nominated for the post by the Bush administration last month. In an effort to speed the consideration of Barofsky's nomination, Senate Banking Chairman Christopher Dodd scheduled a confirmation hearing less than one week after the White House submitted Barofsky's name for the post. Despite the committee's expeditious approval of Barofsky's nomination, confirmation by the full Senate had been stalled due to the objection of a single senator. That objection has been resolved as of late Wednesday, clearing the way for Barofsky's unanimous approval. In their letter, Schumer and McCaskill signaled that Democrats are likely to go to the floor of the Senate next week to request that Barosfky's nomination be approved by a voice vote.

A copy of the senators' letter appears below.

December 4, 2008

Re: Confirmation of Neil Barofsky as Special Inspector General

Dear Colleague:

In early October, Congress passed a $700 billion financial rescue package and instructed the Treasury Department to get to work restoring the health of our financial system—a system that gives Americans access to the mortgages they need to own homes, credit lines to run their businesses, and safe and secure deposit accounts that allow them to save for the future with confidence. We acted in an emergency, but we have a continuing obligation to make sure taxpayer money is protected and properly spent. A simple, responsible and effective step the Senate can immediately take to fulfill our oversight duty is to confirm Neil Barofsky as Special Inspector General for the Troubled Asset Relief Program (TARP).

President Bush has nominated a competent, experienced, veteran prosecutor in Barofsky to serve in this important role. Both the Banking and Finance Committees held hearings on the nomination, and Mr. Barofsky answered our questions with candor and thoughtfulness. Any delay in confirming Mr. Barofsky prevents effective oversight of the $700 billion authorized in the Emergency Economic Stabilization Act (EESA). For those concerned about whether taxpayer dollars are being well spent, putting an independent watchdog in place is an important part of the solution.

The need to act is urgent—just this week, the Government Accountability Office released a report stating that more action was "Needed to Better Ensure Integrity, Accountability, and Transparency." Neil Barofsky is a highly qualified nominee—he is now serving as part of a mortgage fraud task force and has successfully faced down international narco-terrorists and white collar criminals with equal energy and ability.

Any Senator with concerns about TARP should bring them to light as we discuss the appropriateness of releasing additional funds. Holding up this nomination will not solve any problems and will certainly create new ones. Confirming Neil Barofsky is essential, time is short, and the stakes are high. We therefore ask your help in moving this nomination by unanimous consent next week. Please support the immediate confirmation of Neil Barofsky, the well-qualified nominee for Special Inspector General.

Sincerely,

Charles E. Schumer Claire McCaskill

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