TARP Reform and Accountability Act Passes

Today, the House passed the TARP Reform and Accountability Act (HR 384) by a vote of 260-166 to amend the Troubled Assets Relief Program (TARP) provisions of the Emergency Economic Stabilization Act of 2008 (EESA) to:

strengthen accountability, close loopholes, increase transparency -- forcing banks to report how government funds are being spent

require Treasury to take significant steps on foreclosure mitigation, calling for spending $100 billion (with a minimum of $40 billion) of TARP funds to help homeowners

affirm that TARP should be used to benefit small financial institutions, consumer lending, auto companies, and municipalities

limit bonuses for executives of firms participating in TARP

In addition, several amendments passed including one by Rep. Tim Walz (D-MN) which requires the Treasury Department to put the detailed reports on how banks and other financial institutions are using taxpayer money online.

Speaker Pelosi on passage:

President Obama and Congress are committed to seeing that funds under the Troubled Asset Relief Program (TARP) are used responsibly, with full accountability and transparency, and that help is provided to Americans in danger of losing their homes. Chairman Frank's bill achieves these objectives and ensures that the TARP functions as Congress originally intended.

The TARP Reform and Accountability Act will help ease the credit crunch for workers and small businesses, provide at least $100 billion to help homeowners avoid foreclosures, and end golden parachutes for executives whose banks receive TARP assistance.

The American people deserve a government that is a fierce watchdog of their hard-earned tax dollars. Congress and the new Administration will ensure that TARP funds are used for lending to American workers and small businesses -- so we can lift our economy out of recession -- and not for the enrichment of a privileged few.