Wednesday, January 21, 2009

Washington, D.C. – Congresswoman Dina Titus of Nevada’s Third District voted today to enforce strict accountability and transparency by reforming the Troubled Asset Relief Program (TARP).  Since the TARP was created by the Emergency Economic Stabilization Act, the Bush Administration has injected $350 billion into banks with no accounting for how they have spent the money and has failed to adequately use TARP funds to address the mortgage crisis.

“Under President Bush and the Treasury Department, $350 billion have been spent with no accountability or explanation of where the money went.  This is simply unacceptable,” Congresswoman Titus said.  “If another $350 billion is necessary to restore the economic health of our country there must be strict guidelines on how the money can be spent.  With Nevada’s foreclosure rate the highest in the nation, it is critical that stemming the tide of foreclosures is an integral part of the TARP.   It is also essential that there are accountability and transparency so that taxpayers know where the money is going and that it is being used effectively.”

The TARP Reform and Accountability Act, which passed by a vote of 260 to 166, mandates that at least $40 billion go toward helping homeowners and addressing the mortgage crisis that is at the root of the economic crisis.  The legislation also requires banks to report how they are spending the money they receive from the government and limits executive bonuses for firms that receive TARP funds.

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Tags: economy, TARP