Disapproval of Obligations Under the Emergency Economic Stabilization Act of 2008
Floor Speech
Disapproval of Obligations Under the Emergency Economic Stabilization Act of 2008 -- (House of Representatives - January 22, 2009)
Mrs. CAPITO. I would like to thank my colleague for yielding me the time.
On September 19, 2008, then Secretary of the Treasury Paulson called for a ``temporary asset relief program'' to take bad mortgages off the books of many of the country's financial institutions. This plan was hastily negotiated in the halls of Congress and passed on the belief that if we did not act, the capital markets would come crashing down, bringing down the American economy along the way.
I opposed the passage of the original package because I felt it was being negotiated too quickly, there was too little oversight, and it provided too great a risk to the taxpayer.
There's no doubt that our Nation is facing significant economic challenges. However, there is significant doubt whether this TARP program has been the answer. Since passage of the TARP, the plan has changed numerous times. In fact, we're still waiting for the troubled assets to be purchased. So far the Treasury has used the majority of funds for injecting capital funds into our financial institutions in hopes that they will utilize their increased capitalization to free up lending to consumers. But there is little evidence that the $190 billion that was provided to banks has had the desired effect of freeing up credit.
Despite this lackluster track record, the request has been made for the second tranche of $350 billion. Once again the Congress is being forced to make a hasty decision that will affect our children and grandchildren for years to come.
The inherent problems with the TARP program remain. The request for additional funds is being made too hastily, there's not enough oversight, and as we have seen, there is no guarantee that this will work.
I urge my colleagues to support the Foxx resolution and to deny the release of the second tranche of funds.
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