FOR IMMEDIATE RELEASE
Thursday, January 15, 2009

Isakson Votes to Oppose Release of Remaining TARP Funds
Cites Frustration Over How Funding Has Been Spent

WASHINGTON – U.S. Senator Johnny Isakson, R-Ga., today voted to oppose the administration’s request to access another round of funding – some $350 billion in tax dollars – to shore up the nation’s economy, citing his disappointment and frustration over how the administration spent the first $350 billion.

“I supported the first round of the Troubled Asset Relief Program because it is critical to our economy to unfreeze the credit markets,” Isakson said. “However, the administration has used the money in different ways than what was planned originally, and the credit markets are still frozen. As a result, I cannot justify supporting the release of the remaining funds.”

The Emergency Economic Stabilization Act authorized the Treasury Secretary to immediately use up to $250 billion to purchase distressed assets from institutional investors. The Treasury Secretary was allowed to access an additional $100 billion to purchase these distressed assets with presidential approval, which President Bush granted.

However, the administration then used the money to make direct investments in banks rather than purchase troubled assets from banks and other financial institutions, as was originally planned. The administration also used some of the funds to assist U.S. automakers. On Dec. 17, 2008, Isakson sent a letter to President Bush expressing his strong opposition to giving the auto industry access to funds.

The remaining $350 billion may be accessed if the President transmits a written report to Congress requesting the funds. On Jan. 12, 2009, President Bush, acting on behalf of President-elect Obama, requested access to the remaining $350 billion. The Treasury Secretary may use this additional funding unless within 15 days Congress passes a joint resolution of disapproval.  The Senate today rejected the resolution of disapproval by a vote of 42 to 52. Isakson cast one of the 42 votes in favor of the resolution of disapproval.

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