M. Speaker. By direction of the Committee on Rules I call up House Resolution 53 and ask for its immediate consideration.
For the purpose of debate only, I yield the customary 30 minutes to the gentleman from California, Mr. Dreier. All time yielded during consideration of the rule is for debate only. I yield myself such time as I may consume. I also ask unanimous consent that all Members be given five legislative days in which to revise and extend their remarks on House Resolution 53.
M. Speaker. H. Res. 53 provides for initial consideration of H.R. 384, the TARP Reform and Accountability Act of 2009. The rule provides for two hours of general debate to be controlled by the chair and ranking minority member of the Committee on Financial Services. After the general debate there will be no further consideration of the bill except pursuant to a subsequent rule.
Let me be clear - this rule provides for general debate only. The Rules Committee is meeting
M. Speaker. By direction of the Committee on Rules I call up House Resolution 53 and ask for its immediate consideration.
For the purpose of debate only, I yield the customary 30 minutes to the gentleman from California, Mr. Dreier. All time yielded during consideration of the rule is for debate only. I yield myself such time as I may consume. I also ask unanimous consent that all Members be given five legislative days in which to revise and extend their remarks on House Resolution 53.
M. Speaker. H. Res. 53 provides for initial consideration of H.R. 384, the TARP Reform and Accountability Act of 2009. The rule provides for two hours of general debate to be controlled by the chair and ranking minority member of the Committee on Financial Services. After the general debate there will be no further consideration of the bill except pursuant to a subsequent rule.
Let me be clear - this rule provides for general debate only. The Rules Committee is meeting [[right now]] to consider amendments, and tomorrow the House will vote on several amendments - Democrat and Republican - to the bill.
M. Speaker, I rise today in support of H.R. 384, the TARP Reform and Accountability Act. I commend Chairman Frank and the Financial Services Committee for their steadfast commitment to reviving our nation's economy.
Last September, the Bush Administration sounded the alarm that our financial system was dangerously close to collapse. Treasury Secretary Paulson came to Congress with an astronomical funding request that he said would free up the credit markets and prevent a bad situation from getting worse. The Bush Administration asked for a $700 billion blank check with no strings attached.
Over the next few weeks, Speaker Pelosi, Chairman Frank and the House Democratic Leadership, along with Senate leaders and then Senator-Obama, worked with the Bush Administration on a compromise that became the Troubled Asset Relief Program or TARP. The TARP provided $700 billion in two stages - $350 billion up front and another $350 billion when requested by the Administration.
I opposed the Administration's original request for a blank check, but I voted for the compromise because I took Secretary Paulson at his word that this money would be spent where it was needed. Specifically, funding would go to homeowners and banks that were feeling the pressures of a tightening credit market.
Unfortunately, the Bush Administration gave most of this money to the big banks who continue to sit on too much of the money instead of lending it out to other institutions and individuals. The stunning fact is that of the $250 billion provided in direct assistance to banks, only $62.5 billion has been spent. That means that the banks are still sitting on $187.5 billion. That is simply not good enough.
M. Speaker, this economic crisis is real, this housing crisis is real - and it's not getting better. One in ten American homeowners with a mortgage - one in ten - were either behind on payments or in foreclosure at the end of September. Predictions in December were that more than 8 million foreclosures - 16% of all U.S. mortgages - would occur over the next four years if nothing is done. That's quite a record for the outgoing Administration.
Now, Chairman Frank will be the first to say that we don't know how bad the economy would be if the first $350 billion of the TARP wasn't spent by the Bush Administration. But we do know it could have been spent more wisely.
The American public simply doesn't trust the current Administration to do the right thing - and rightfully so. But this new Congress - through the bill we will consider later today and tomorrow - will attempt to right the many wrongs surrounding the TARP.
M. Speaker, we not only need better oversight on the second set of TARP funds, we also need to provide a real blueprint for how these funds are spent. The Bush Administration clearly failed on this point, but H.R. 384 is a step in the right direction.
While I hope the Senate will pass this bill and that President-elect Obama will sign it after he takes office, it's important to note that we in the House at least signal our intent on how this funding should be spent.
President-Elect Obama has said that he will actually listen to and consult with Congress on important issues. And won't that be a welcome change from the current administration?
I strongly disagree with those who say that President-elect Obama simply requested the funds but doesn't have a plan on how to spend these funds wisely. The incoming National Economic Advisor, Larry Summers, recently sent a letter outlining President-elect Obama's priorities and expectations for the second set of TARP funds. Those priorities are reflected in the bill we will consider today and tomorrow. I ask unanimous consent to insert Secretary Summers' letter into the record following my remarks.
While we should take President-elect Obama and his advisors at their word, we should not do so blindly. Trust, but verify - that is what we will do.
M. Speaker, my constituents are frustrated and frightened. Many are afraid they will lose their homes, that their lives will be turned upside down. These are good, honest, hard working people who have fallen on hard times. Some tell me they have been to their lenders, many times, in an effort to prevent foreclosure, only to be told there is no help available - simply wait to default. That's not right and, with this bill, we will address this problem.
Our economy won't get better overnight, but it can get worse. This funding is needed, but we cannot release it without a real plan on how it will be spent. The economy is not just about banks and investment houses. It's not just about Wall Street. It's about the small businesses and community lenders on Main Street. It's about the families and individuals trying to make a living and improve their lives on the side streets. Allowing banks to hoard taxpayer money - as the Bush Administration has done - doesn't help the people in Worcester and Attleboro and Fall River. But dedicating funds to help the mortgage crisis and move money through the credit markets is exactly what is needed. And this bill does that.
I strongly support Chairman Frank's bill and I support the incoming Administration's stated goals. I urge my colleagues to vote for this bill and I reserve the balance of my time.
to consider amendments, and tomorrow the House will vote on several amendments - Democrat and Republican - to the bill.
M. Speaker, I rise today in support of H.R. 384, the TARP Reform and Accountability Act. I commend Chairman Frank and the Financial Services Committee for their steadfast commitment to reviving our nation's economy.
Last September, the Bush Administration sounded the alarm that our financial system was dangerously close to collapse. Treasury Secretary Paulson came to Congress with an astronomical funding request that he said would free up the credit markets and prevent a bad situation from getting worse. The Bush Administration asked for a $700 billion blank check with no strings attached.
Over the next few weeks, Speaker Pelosi, Chairman Frank and the House Democratic Leadership, along with Senate leaders and then Senator-Obama, worked with the Bush Administration on a compromise that became the Troubled Asset Relief Program or TARP. The TARP provided $700 billion in two stages - $350 billion up front and another $350 billion when requested by the Administration.
I opposed the Administration's original request for a blank check, but I voted for the compromise because I took Secretary Paulson at his word that this money would be spent where it was needed. Specifically, funding would go to homeowners and banks that were feeling the pressures of a tightening credit market.
Unfortunately, the Bush Administration gave most of this money to the big banks who continue to sit on too much of the money instead of lending it out to other institutions and individuals. The stunning fact is that of the $250 billion provided in direct assistance to banks, only $62.5 billion has been spent. That means that the banks are still sitting on $187.5 billion. That is simply not good enough.
M. Speaker, this economic crisis is real, this housing crisis is real - and it's not getting better. One in ten American homeowners with a mortgage - one in ten - were either behind on payments or in foreclosure at the end of September. Predictions in December were that more than 8 million foreclosures - 16% of all U.S. mortgages - would occur over the next four years if nothing is done. That's quite a record for the outgoing Administration.
Now, Chairman Frank will be the first to say that we don't know how bad the economy would be if the first $350 billion of the TARP wasn't spent by the Bush Administration. But we do know it could have been spent more wisely.
The American public simply doesn't trust the current Administration to do the right thing - and rightfully so. But this new Congress - through the bill we will consider later today and tomorrow - will attempt to right the many wrongs surrounding the TARP.
M. Speaker, we not only need better oversight on the second set of TARP funds, we also need to provide a real blueprint for how these funds are spent. The Bush Administration clearly failed on this point, but H.R. 384 is a step in the right direction.
While I hope the Senate will pass this bill and that President-elect Obama will sign it after he takes office, it's important to note that we in the House at least signal our intent on how this funding should be spent.
President-Elect Obama has said that he will actually listen to and consult with Congress on important issues. And won't that be a welcome change from the current administration?
I strongly disagree with those who say that President-elect Obama simply requested the funds but doesn't have a plan on how to spend these funds wisely. The incoming National Economic Advisor, Larry Summers, recently sent a letter outlining President-elect Obama's priorities and expectations for the second set of TARP funds. Those priorities are reflected in the bill we will consider today and tomorrow. I ask unanimous consent to insert Secretary Summers' letter into the record following my remarks.
While we should take President-elect Obama and his advisors at their word, we should not do so blindly. Trust, but verify - that is what we will do.
M. Speaker, my constituents are frustrated and frightened. Many are afraid they will lose their homes, that their lives will be turned upside down. These are good, honest, hard working people who have fallen on hard times. Some tell me they have been to their lenders, many times, in an effort to prevent foreclosure, only to be told there is no help available - simply wait to default. That's not right and, with this bill, we will address this problem.
Our economy won't get better overnight, but it can get worse. This funding is needed, but we cannot release it without a real plan on how it will be spent. The economy is not just about banks and investment houses. It's not just about Wall Street. It's about the small businesses and community lenders on Main Street. It's about the families and individuals trying to make a living and improve their lives on the side streets. Allowing banks to hoard taxpayer money - as the Bush Administration has done - doesn't help the people in Worcester and Attleboro and Fall River. But dedicating funds to help the mortgage crisis and move money through the credit markets is exactly what is needed. And this bill does that.
I strongly support Chairman Frank's bill and I support the incoming Administration's stated goals. I urge my colleagues to vote for this bill and I reserve the balance of my time.
