[Congressional Record Volume 155, Number 87 (Thursday, June 11, 2009)]
[Senate]
[Pages S6550-S6551]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HATCH (for himself and Mrs. Lincoln):
  S. 1243. A bill to require repayments of obligations and proceeds 
from the sale of assets under the Troubled Asset Relief Program to be 
repaid directly into the Treasury for reduction of the public debt; to 
the Committee on Banking, Housing, and Urban Affairs.
  Mr. HATCH. Mr. President, I rise today to introduce the Stop TARP 
Asset Recycling Act, or the STAR Act, a bill that would require any 
funds returned to the Treasury Department that were originally 
allocated under the Troubled Asset Relief Program, TARP, to be placed 
in the general fund rather than being put back into TARP. I am proud to 
say that this is a bipartisan bill, cosponsored by my friend from 
Arkansas, Senator Lincoln.
  It is apparent that TARP has become a slush fund for the Obama 
administration to acquire banks, insurance companies and auto 
manufacturers. We need to ensure that the original purpose of TARP is 
maintained and Treasury is prevented from unilaterally and arbitrarily 
nationalizing our nation's private sector.
  The Emergency Economic Stabilization Act, which was signed into law 
last October, created TARP. This act authorized TARP to purchase up to 
$700 billion in troubled assets from financial institutions ``to 
restore liquidity and stability to the financial system.'' However, 
since its inception,

[[Page S6551]]

TARP has taken on a different role in our free enterprise system. It 
seems to have become the go-to solution for all of our problems. It has 
been used to bail out banks, insurance companies and automobile 
manufacturers. What is next, Mr. President?
  Some of our healthier banks are now returning this money because, I 
believe, of the unreasonable regulations that have been and could be 
placed on firms with TARP funds. While it is clear that proceeds from 
TARP sales must be placed in the general fund to pay down our 
increasing debt, it is unclear under the law whether or not the 
original investment from TARP must be placed in the general fund or can 
be recycled back into TARP. The latter option would result in an ever-
revolving slush fund for TARP and could provide this administration 
with the means to pick and choose which company it would next like to 
nationalize.
  For example, the Treasury Department recently used $30 billion to 
purchase up to 60 percent of General Motors' shares. If, in the future, 
Treasury sells these shares at a gain, let us say $32 billion, the $2 
billion profit must be put back into the general fund, but it is 
unclear whether the original $30 billion investment recovered from the 
sale can be put back into TARP.
  I do not believe any of my colleagues intended TARP to get this out 
of control. It is time that we reestablish the purpose of TARP by 
requiring Treasury to put the original investment back into the general 
fund. Congress must no longer stand by and watch Treasury amass an 
everlasting fund it can use to bail out any industry it deems ``too big 
to fail'' without congressional approval.
  Ten large banks have recently received Treasury approval to repay $68 
billion received under TARP. I believe now is the time to start 
restricting Treasury's access to these funds. My bill would force 
Treasury to put this money back into the general fund once it is used. 
It would not prevent Treasury from using up to $700 billion already 
authorized under TARP, but it would force Treasury to make sure that 
the taxpayers' investment is spent wisely.
  The American taxpayer has been told to foot the bill for rescuing the 
financial sector, but now they are being forced to bail out any company 
at the discretion of the Department of Treasury. Many Utahns are saying 
it is time to be fiscally conservative, and I agree. So do millions 
elsewhere across the Nation.
  I hope my colleagues would agree as well and support this 
legislation; otherwise, we have not only written a blank check to 
Treasury, but we have delegated an enormous amount of power over our 
free enterprise system. This money belongs to the people, not the Obama 
administration. I think it is time Congress acts to ensure that TARP is 
being used for its intended purpose.
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