[Congressional Record Volume 155, Number 16 (Tuesday, January 27, 2009)]
[Extensions of Remarks]
[Pages E155-E156]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 DISAPPROVAL OF OBLIGATIONS UNDER THE EMERGENCY ECONOMIC STABILIZATION 
                              ACT OF 2008

                                 ______
                                 

                               speech of

                           HON. EARL POMEROY

                            of north dakota

                    in the house of representatives

                       Thursday, January 22, 2009

  Mr. POMEROY. Mr. Speaker, Our nation's economy continues to be 
challenged by tight credit markets and the long-term unwinding of the 
housing bubble. In light of the serious economic situation, I am voting 
against H.J. Res. 3 which involves the second half of the funds for the 
Troubled Asset Relief Program (TARP) for three reasons:
  The first reason is that the economy is in truly terrible shape. 
During 2008, the economy lost 2.6 million jobs, with more than 1 
million jobs lost in the last two months alone. Economists now project 
that the unemployment rate might rise to over ten percent in the coming 
year. Congress needs to do what it can to respond to the situation. 
When Congress initially authorized the TARP funds in late September the 
crisis in the financial markets had not hit main street business across 
the country. Today as we consider releasing the second half of the TARP 
funds, the circumstances that compelled that response last fall are 
even more dire.
  The second reason for my opposition to the resolution of disapproval 
is based upon a belief that the second half of TARP funds will be used 
more strategically and effectively. Simply put, appointees of the Bush 
administration that oversaw the flawed administration of the program 
are no longer in charge of its operation. We have a new President and 
economic team that will need all of the presently available tools and 
more to address our cratering economy. The Obama administration has 
committed to get credit flowing to families and businesses while 
launching a sweeping effort

[[Page E156]]

to address the foreclosure crisis and establishing a full and accurate 
accounting of the uses of TARP funds.
  The third reason is safeguards for taxpayer funds that were contained 
in the detailed conditions the House approved for the TARP funds when 
it overwhelmingly passed H.R. 384. It is very unfortunate that TARP was 
mishandled. This bill, TARP Reform and Accountability Act, turns around 
the discredited ``no strings attached'' way the prior administration 
invested the funds. In addition to the explicit protections to 
taxpayers that had been reasonably expected in the program's 
administration to date, the bill requires Treasury to reach agreement 
with recipients of future TARP fund on exactly how the funds will be 
used and places limits on executive compensation and bonuses. The 
bill's provisions expand the oversight of the program and direct 
specific dollars to address housing foreclosures. The written pledges 
of the Obama administration to operate TARP with firm conditions, 
greater oversight and transparent accountability abide with the 
conditions passed by the House.
  For the above reasons and because we do not know yet where this 
downturn in the economy will reach bottom, I voted against the 
resolution to disavow the release of the second part of the TARP funds 
to be administered by a new Treasury Secretary committed to protecting 
the interest of American taxpayers while providing needed assistance to 
the financial markets.

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