Grassley Says House Bill Expands Profits for Big Wall Street Banks

Statement

Senator Chuck Grassley issued the following comment about House action today on "jobs" legislation passed last week by the Senate.

The House bill expanded the Build America Bonds provision to the four tax-credit bonds in the Reid bill, up from the two tax credit bond provisions originally passed by the House. The House bill provides a 100-percent payment from the U.S. Treasury for the two tax-credit bonds related to schools, and a 70-percent payment from the U.S. Treasury for two energy tax-credit bonds, both of which are more generous than the Senate bill. The House bill spends $4.6 billion, not offset, and the Senate bill spends $2.5 billion, not offset.

Senator Grassley's comment:

"With its vote today, the House has one-upped the Senate majority on directing more money to profits for big Wall Street banks, while claiming to pass legislation to create jobs. The House bill creates new opportunities for underwriters to skim the cream by expanding the Build America Bonds provisions that were in Senator Reid's bill.

"Build America Bonds are 37 percent more lucrative for banks and financial advisors than other tax-exempt bonds, according to Bloomberg News, and taxpayers deserve to know that a major portion of the outlay will go to investment banks, rather than infrastructure. The truth is, school kids and green energy efforts get what's left after the bank fees are paid and city and state governments have released the funding."

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