[Congressional Record Volume 155, Number 57 (Monday, April 20, 2009)]
[Senate]
[Page S4449]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE (for herself and Mr. Wyden):
  S. 836. A bill to provide enhanced authority to the Congressional 
Oversight Panel established pursuant to the Emergency Economic 
Stabilization Act of 2008; to the Committee on Banking, Housing, and 
Urban Affairs.
  Ms. SNOWE. Mr. President, I rise today to introduce legislation to 
provide the Congressional Oversight Panel, COP, with subpoena authority 
so that it can more effectively conduct oversight on behalf of American 
tax payers. Created as part of last fall's Emergency Economic 
Stabilization Act, EESA, to be Congress' watchdog over the Troubled 
Asset Relief Program, TARP, it has become apparent that a lack of 
subpoena authority is actively preventing the COP from obtaining all 
necessary information to safeguard rescue fund dollars. I would like to 
thank Senator Wyden for cosponsoring this legislation that would grant 
the COP subpoena power should three of the Panel's five members feel it 
is appropriate.
  One of three organizations charged with overseeing TARP, the COP's 
role is to ``review the current state of the financial markets and the 
financial regulatory system'' and to report to Congress every 30 days. 
Through regular reports, COP must oversee Treasury's actions; assess 
the impact of spending to stabilize the economy; evaluate market 
transparency; ensure effective foreclosure mitigation efforts; and 
guarantee that Treasury's actions are in the best interest of the 
American people. Notably, Congress provided the COP in EESA the 
explicit power to secure information from any government agency upon 
the request of its Chair.
  Unfortunately despite the yeoman efforts of COP Chair Elizabeth 
Warren and her four colleagues, the Panel is having difficulties 
discharging its duties. In particular, the Panel appears to be having 
problems obtaining necessary information from the Treasury Department, 
which is administering the TARP. Indeed, Ms. Warren told the Senate 
Finance Committee on March 31 that she feels as though the Panel and 
its requests for information are simply not a priority for the 
Department. Unfortunately, the facts appear to bolster Ms. Warren's 
conclusion.
  Ms. Warren's written testimony before the Finance Committee notes, 
``The Oversight Panel has repeatedly called on Treasury to articulate a 
clear strategy for its use of TARP funds; the absence of such a vision 
hampers effective oversight. In fact, our first report outlined a 
series of ten basic questions, starting with the question, `What is 
Treasury's strategy?' Months later, Congress and the American people 
have no clear answer to that question. The ongoing uncertainty has 
hindered recovery efforts. I have sent two letters to Treasury 
Secretary Geithner asking for clarification on this specific point. I 
am disappointed to report that the Oversight Panel has not received a 
substantive response.''
  In addition to a letter the Panel sent to Secretary Geithner on March 
5 asking him to outline a strategy for TARP and respond to questions 
regarding the approach taken by the recently announced Financial 
Stability Plan, Ms. Warren asked that Mr. Geithner testify before the 
COP on March 12 or March 19. Although Ms. Warren reports that Secretary 
Geithner replied to her March 5 letter on April 2, nearly two weeks 
after the requested response date of March 20, a COP hearing with Mr. 
Geithner as a witness will only now take place on April 21, a delay 
that has only further impeded the Panel's effectiveness.
  Furthermore, other COP members have also noticed Treasury's apparent 
pattern of failing to respond to critical questions. Deputy Chair Damon 
Silvers testified before the Joint Economic Committee, JEC, on March 11 
about the Panel's attempt to answer the critical question of whether 
taxpayers are receiving assets commensurate in value with TARP dollars 
being expended. Unfortunately, the Treasury Department appears to have 
been less than helpful in assisting the Panel in its analysis. In fact, 
Mr. Silvers told JEC the following:
  ``Our valuation report relied entirely on publicly available data. 
The Panel did make a broad document request of the Treasury Department 
pursuant to our authority under Section 125 of the EESA on December 17, 
2008. Our purpose was to obtain any non-public information that 
Treasury possessed that would go to issues of valuation, in addition to 
contributing to our general ability to oversee the TARP program. In a 
letter dated December 24, 2008, the Treasury Department declined to 
provide the material we requested, and raised concerns about our newly 
formed Panel's internal controls over the confidential documents. 
Despite extensive discussions between our staff and the Treasury 
Department, Treasury has only produced a small number of the documents 
the Panel requested.''
  With $700 billion in TARP funds at stake, providing the Congressional 
Oversight Panel with the tools and resources it requires to conduct 
effective oversight is absolutely essential. The fact is that we in 
Congress are duty bound to correct TARP inadequacies but can only do so 
with reliable information from its overseers. Clearly, the examples I 
have just cited demonstrate that providing the Panel subpoena authority 
is warranted so that it can compel Treasury and any other entities to 
provide all requisite information. For this reason, I ask my colleagues 
to support this legislation that would do just that so that it can be 
quickly sent to President Obama for his signature.
  Mr. President, I ask unanimous Consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 836

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SUBPOENA POWER FOR CONGRESSIONAL OVERSIGHT PANEL.

       Section 125(e)(1) of the Emergency Economic Stabilization 
     Act of 2008 (12 U.S.C. 5233(e)(1)) is amended--
       (1) by striking ``The Oversight'' and inserting the 
     following:
       ``(A) In general.--The Oversight''; and
       (2) by adding at the end the following:
       ``(B) Subpoena power.--For purposes of carrying out this 
     section, upon majority vote of its members, the Oversight 
     Panel may require, by subpoena or otherwise, the attendance 
     and testimony of witnesses and the production of such books, 
     records, correspondence, memoranda, papers, documents, tapes, 
     and materials as the Oversight Panel considers advisable.
       ``(C) Issuance and enforcement of subpoenas.--
       ``(i) Issuance.--A subpoena issued pursuant to subparagraph 
     (B) shall bear the signature of a member of the Oversight 
     Panel, and shall be served by any person or class of persons 
     designated by the Oversight Panel for that purpose.
       ``(ii) Enforcement.--In the case of contumacy or failure to 
     obey a subpoena issued under subparagraph (B), the subpoena 
     shall be enforceable by order of any appropriate district 
     court of the United States. Any failure to obey the order of 
     the court may be punished by the court as a contempt of that 
     court.''.

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