House Republicans Call on Democrats to Hold TARP Hearings, Request Testimony from Key Company CEOs
Washington,
Dec 10, 2008 -
Republican Leader John Boehner (R-OH) joined 82 of his Republican colleagues in sending a letter today to Speaker Nancy Pelosi (D-CA) and Financial Services Committee Chairman Barney Frank (D-MA) to request that CEOs from institutions receiving taxpayer funds through the Troubled Asset Relief Program (TARP) be called before the Financial Services Committee to answer questions about their use of TARP funds.
“As you know, pursuant to its authority under the Troubled Asset Relief Program (TARP), the Treasury Department has distributed – or made commitments to distribute – some $335 billion to a wide range of U.S. financial institutions, including $40 billion to prevent the failure of American Insurance Group (AIG) and a total of $50 billion in capital and loss protection to Citigroup,” the Members wrote. “To date, not a single Chief Executive Officer from any TARP participant has been called to testify before the Committee on Financial Services regarding their need for – or use of – the hundreds of billions of taxpayers’ dollars they have received.”
The letter continues, “By contrast, the Chief Executive Officers of the Ford Motor Company, General Motors, and Chrysler have each testified twice before the Committee – as well as twice before the Senate Banking Committee – in connection with congressional consideration of possible bridge loans or lines of credit to those companies.”
NOTE: A total of 83 House Republicans, including the entire leadership team, signed the letter. The signed letter is available here.
December 10, 2008
The Honorable Nancy Pelosi
Speaker of the House
H-232, U.S. Capitol
Washington, D.C. 20515
The Honorable Barney Frank
Chairman
Committee on Financial Services
2129 Rayburn House Office Building
Washington, D.C. 20515
Dear Speaker Pelosi and Chairman Frank,
As you know, pursuant to its authority under the Troubled Asset Relief Program (TARP), the Treasury Department has distributed – or made commitments to distribute – some $335 billion to a wide range of U.S. financial institutions, including $40 billion to prevent the failure of American Insurance Group (AIG) and a total of $50 billion in capital and loss protection to Citigroup. To date, not a single Chief Executive Officer from any TARP participant has been called to testify before the Committee on Financial Services regarding their need for – or use of – the hundreds of billions of taxpayers’ dollars they have received.
By contrast, the Chief Executive Officers of the Ford Motor Company, General Motors, and Chrysler have each testified twice before the Committee – as well as twice before the Senate Banking Committee – in connection with congressional consideration of possible bridge loans or lines of credit to those companies.
To avoid a double standard and ensure accountability and taxpayer protection in the implementation of the TARP, we request that you immediately invite the appearance of CEOs from institutions that have received TARP funds before the Financial Services Committee to explain:
1. How their institution’s actions may have contributed to the credit crisis, and whether their institution's decisions not to use TARP funds to extend consumer, commercial or other credit may have prolonged the credit crisis unnecessarily;
2. What remedial steps, if any, their institution has taken before, during, and after the credit crisis to address risk management failures and to protect consumers and taxpayers;
3. How their institution has utilized and will utilize TARP funds received to date, including the extent to which the funds have been or will be used for lending purposes; and
4. How and when their institution expects to be able to repay taxpayers.
We look forward to your response and to working with you on behalf of the American people.
Sincerely,
#####
