House Adopts Walz Amendment to Shed Sunlight on $700 Billion Wall Street Bailout

Press Release

HOUSE ADOPTS WALZ AMENDMENT TO SHED SUNLIGHT ON $700 BILLION WALL STREET BAILOUT

"President Obama has asked for the second $350 billion installment of TARP funds to be made available to his administration. We've seen so little evidence that the first $350 billion has worked that I think we absolutely have to amend the program to demand transparency from the Treasury and from banks that are getting the money," said Walz. "If given the opportunity, I will vote against providing the President additional TARP funding. First, I'll need to see how the original funds were spent and whether there is evidence that it has improved the economy."

Walz successfully added an amendment to today's reform package. The Walz Amendment requires the Treasury Department to publicly post information on the internet detailing how banks and other financial institutions used their share of taxpayers' money in the Wall Street bailout. These reports must be made not less than quarterly.

"I do not believe the TARP program is effective, but today the best I can do for the taxpayers who are footing the bill is to ensure that there is as much transparency and accountability as possible so we'll know where our tax dollars have gone and whether they've done any good. I'm proud my amendment will further strengthen the transparency of this program by making that information available to all citizens via the internet," concluded Walz.

Later this week, the House will vote on whether to release the second $350 billion installment; the original legislation requires that Congress vote to block the funding, otherwise the $350 billion is automatically released. The Bush Administration's Treasury Department mismanaged the financial rescue funds approved in the last Congress and did not satisfactorily explain how $350 billion of taxpayer money was spent. Before leaving office, former President Bush requested on behalf of President Obama that Congress release the second installment of the Wall Street bailout package, an additional $350 billion in funding to be distributed by the Treasury Department.

Walz said he voted against the Wall Street bailout last year and he plans to vote against releasing the second installment as well. Walz said that although he was opposed to providing any additional money as part of the Wall Street bailout, he would vote for the reform package to make sure that the taxpayers' money was protected to the maximum extent possible.

The TARP accountability legislation will:
- force banks and other recipients of assistance to report how government funds are being spent,
- limit executive bonuses for firms participating in TARP,
- require that a minimum of $40 billion of any TARP money be spent to help homeowners
and address the mortgage crisis at the root of the recession,
- assist cities and other tax-exempt issuers in finding investors for their bonds.

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