TARP was originally enacted as a temporary plan to address an extraordinary crisis in our financial markets as a result of the collapse of financial firms that the government said were ‘too big to fail.’ Those who voted for the Emergency Economic Stabilization Act, which created TARP, did so with the assurance that the money would be returned to the taxpayers. The program was set to expire Dec. 31 of this year.
However, the Administration has extended the TARP program to October 3, 2010, which has opened the door to efforts by Democrats in Congress to begin spending repaid and unallocated TARP funds for programs unrelated to the financial emergency.
Click here to watch my Floor speech on my efforts against this plan.
Unfortunately, the banking bill that passed, H.R. 4173, not only fails to end the TARP - even though the emergency in the financial markets has abated — it also turns TARP into a revolving slush fund to pay for the Majority’s political, economic, and social agenda. H.R. 4173 provides for a “permanent bailout” fund, creates yet another federal agency called the Consumer Financial Protection Agency, and also establishes a government “credit czar” to dictate which financial products can and cannot be available to American consumers.
The explosion of government growth and spending under this Congress’ Majority is unsustainable, and I will continue to fight against it. If we are going to see our economy rebound and create sustainable jobs, we must restore sound fiscal and economic policies for this country.