[Congressional Record Volume 155, Number 12 (Wednesday, January 21, 2009)]
[Extensions of Remarks]
[Page E119]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               TARP REFORM AND ACCOUNTABILITY ACT OF 2009

                                 ______
                                 

                               speech of

                       HON. CHRISTOPHER S. MURPHY

                             of connecticut

                    in the house of representatives

                       Thursday, January 15, 2009

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 384) to 
     reform the Troubled Assets Relief Program of the Secretary of 
     the Treasury and ensure accountability under such Program, 
     and for other purposes:

  Mr. MURPHY of Connecticut. Mr. Chair, I would like to draw attention 
to section 403 of H.R. 384, the ``TARP Reform and Accountability Act.'' 
It is clearer every day that there is a crisis in the commercial real 
estate credit markets. Section 403 of H.R. 384 clarifies Treasury's 
authority to take action to support liquidity in the commercial real 
estate market.
  Right now the $3.4 trillion commercial mortgage market is frozen. 
Most lenders have withdrawn from the market and there is no secondary 
market for commercial mortgages. In 2007, the market provided 
approximately $240 billion in financing, which represented nearly 50 
percent of all commercial lending. In contrast, the market came to a 
screeching halt and provided less than $13 billion in issuance in 2008, 
despite borrowers' demand. In 2009, tens of billions of commercial real 
estate loans will come due without any capacity to refinance these 
performing loans. The result could very well be widespread loan 
defaults. With the downturn in the U.S. economy now having dramatic 
effects on the commercial real estate market, Section 403 affirms the 
Treasury Department's ability to take action to help preserve this 
important sector of our economy.
  With the clarification included in Section 403, the Treasury can move 
forward in determining how best to address this situation--either 
through the Term Asset-backed Securities Lending Facility; or by 
setting aside TARP funds for the creation of a commercial lending 
facility that would provide the private market with liquidity and allow 
for the extension of new credit, as well as assist in refinancing 
existing performing loans.
  It is important that we continue to act to address this crisis in a 
responsible manner that protects the American taxpayer and preserves 
vital sectors of the United States economy and I urge my colleagues to 
do so through their support of H.R. 384.

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