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U.S.
Senator Member: Finance, Agriculture, Energy, Ethics and Aging Committees |
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For Immediate
Release Monday, November 17, 2008 |
CONTACT:Michael Amodeo – 303-455-7600 |
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Sen. Salazar Pushes for Strong Oversight on Implementation of Economic Rescue Package Washington, DC – Today, in a hearing before the Senate Finance Committee, United States Senator Ken Salazar questioned Neil Barofsky, the President’s nominee to be the Special Inspector General for the economic rescue program, and called for action to address a number of challenges that have arisen in the implementation of the program. In his remarks, Senator Salazar reiterated his commitment to protecting American taxpayers, exercising strong and independent oversight, placing strict limits on executive compensation, and providing help for struggling homeowners Senator Salazar’s opening remarks, as prepared for delivery, are included below: “Thank you, Chairman Baucus and Ranking Member Grassley, for holding this afternoon’s hearing to examine the President’s nominee to be Special Inspector General for the Troubled Assets Relief Program, or TARP. “Let me first say that I am glad to have the opportunity to discuss issues and concerns related to the economic rescue legislation that was signed into law last month. When we learned in September about the grave crisis in the nation’s financial markets and the potential consequences to businesses and families across the country, Congress worked around the clock to draft and pass a proposal that would be both effective in addressing the crisis and responsible in protecting taxpayer dollars, providing strong and independent oversight, and penalizing companies that stood to benefit from government assistance. “While I supported passage of the economic rescue package, I made it clear that I believed the proposal had shortcomings, and that I was committed to forcefully exercising the Congressional oversight authority that it provides and to work diligently to ensure its effective implementation. With that in mind, I commend Senator Baucus for his work in creating the position of Special Inspector General for the program. I joined Senator Baucus in urging its inclusion, and am eager to see it put into place. “Since enactment of the economic rescue legislation, we have had an opportunity to see the program in action, and the results are not all good. “First, I am concerned that those responsible for administering the program do not have an adequate grasp on the nature of the problem or the most effective response. Just last week, Secretary Paulson announced a major shift in the overall structure of the program. Rather than buying distressed assets – an approach he adamantly asserted would work – the Secretary announced that the government will now purchase a direct stake in the nation’s banks. “I understand the potential benefits of this approach from the perspective of injecting cash more quickly into the market and protecting taxpayer dollars, but I continue to believe that the government must develop a well-thought-out strategy and execute it rather than jump from tactic to tactic and hope one will eventually work. “Second, I share the concerns that have been raised about how banks are using the funds the government has provided to them. If the goal of the program is to restore the flow of credit that is vital to health economic activity for small businesses and families seeking loans, then the government assistance should not be used to compensate executives or shareholders. “Finally, given the results of the recent election and the changing political dynamic in Washington, I want to be absolutely clear that I am equally committed to ensuring effective implementation of this program and protecting the taxpayer regardless of which political party is in power. Whether this program is run by President Bush or President Obama, I will not hesitate to exercise tough oversight on the program and its administrators, the Special Inspector General, or the President. The people of Colorado and the nation expect nothing less. “I look forward
to discussing these important issues with Mr. Barofsky and my colleagues
on the Committee this afternoon, and to hearing from the nominee about
how he plans to ensure the effective, responsible use of our constituents’
tax dollars.” ###
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