Madam Speaker, I rise in support of H.R. 384, the TARP Reform and Accountability Act, which will ensure that TARP funding will be spent responsibly and transparently in an effort to get the economy back on track.

In order to stabilize our economy and get credit flowing again to families and small businesses, we need to fundamentally change the practices of the Troubled Assets Relief Program before the remaining $350 billion streams into the marketplace.  Unfortunately, the Bush Administration mismanaged the financial rescue funds approved in 2008 and failed to follow Congressional intent when it came to executing the Emergency Economic Stabilization Act. The Bush Administration failed to address the foreclosures as the source of this crisis, and it did not effectively use TARP funds to restore our economy’s flow of credit. 

Along with my constituents, I am deeply disappointed that the past administration did not adequately track how taxpayer money was spent to ensure that banks were using it for the intended purposes.

Congress must only move forward with the release of the remaining TARP funds if they are confident that these failures will be remedied. H.R. 384 amends the Troubled Assets Relief Program provisions of the Emergency Economic Stabilization Act by strengthening accountability, closing loopholes, and increasing transparency.  This measure sets up a blueprint to carefully track and monitor all the TARP funds, including previous and future allocations.  It requires Treasury to provide a minimum of $40 billion on foreclosure mitigation to help homeowners address the mortgage crisis.  H.R. 384 limits executive bonuses for firms participating in TARP and assists cities and other tax-exempt issuers in finding investors for their bonds.  Under the direction of the Obama Administration, I believe the TARP funding will adhere to these new transparency and accountability provisions, while also working to ensure that our taxpayers’ needs are the top priority.

During this difficult economic crisis, we need to stand up for Rhode Island families looking to secure student loans, car loans, home loans or mortgage refinancing.  We need to make sure that small business owners have access to the capital they need to make payroll or invest in their companies.  And we need to stabilize the pensions and savings that our retirees are counting on.  I believe this recovery plan is essential for Rhode Island families.   H.R. 384 will bring us closer to the original intent of TARP – to help those most in need during these difficult times.

I want to thank my friend, Chairman Frank, for his tireless work on this issue, and I encourage my colleagues to vote for this bill.

Thank you, Madam Speaker.