Congresswoman Hirono Votes in Favor of Financial Rescue Funding Reform
WASHINGTON, D.C.—Congresswoman Mazie K. Hirono (D-Hawai‘i) today voted in favor of H.R. 384, the Troubled Assets Relief Program (TARP) Reform and Accountability Act. The measure passed by 260 yeas to 166 nays in the House.
This legislation amends the TARP provisions of the Emergency Economic Stabilization Act of 2008 (EESA) to strengthen accountability, close loopholes, increase transparency, and require the Treasury Department to take significant steps on foreclosure mitigation. The bill requires the Treasury Department to permit smaller community financial institutions to participate on the same terms as the large institutions that have already received funds. H.R. 384 also:
• Requires any existing or future institution that receives TARP funding to provide, at minimum, quarterly public reporting on its use of the funding. The Treasury Department must administer a public database that includes the reporting, data collection, and analysis of use of TARP funds.
• Stipulates that $40 to $100 billion of TARP funding must be committed to foreclosure mitigation. The Treasury Secretary must develop a comprehensive plan to prevent and mitigate foreclosures on residential mortgages.
• Establishes a program to stimulate demand for home purchases and clear inventory of properties, ensuring the availability of affordable mortgage rates for qualified home buyers.
• Makes permanent the increase in deposit insurance coverage for banks and credit unions to $250,000 and includes an inflation adjustment provision for future coverage.
“Secretary Paulson and the Treasury Department have dropped the ball on administering TARP. They have no idea how the money that’s already been disbursed is being used and have no strategy on stabilizing the financial markets or getting credit to move freely again,” Hirono said. “This reform bill will provide the oversight that has sorely been missing and will also begin to help homeowners facing foreclosure. Our expectation is that President Obama will implement TARP in the way Congress intended, with taxpayer protections and accountability.”
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