[Congressional Record Volume 155, Number 107 (Thursday, July 16, 2009)]
[Extensions of Remarks]
[Page E1824]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               INTRODUCTION OF THE ``PROFIT ACT OF 2009''

                                 ______
                                 

                          HON. MARY JO KILROY

                                of ohio

                    in the house of representatives

                        Thursday, July 16, 2009

  Ms. KILROY. Madam Speaker, today I introduce legislation, the 
``Provide a Return on Financial Investment for the Taxpayer Act of 
2009,'' or ``PROFIT Act of 2009,'' which will maximize the American 
taxpayers' return on its investment in troubled financial institutions 
through the Troubled Asset Relief Program (TARP) and make the payback 
process between Treasury and the banks transparent to the public.
  During the wake of the economic crisis, American taxpayers assumed an 
enormous financial risk when they bailed out these institutions.
  To compensate for this risk, banks that received TARP funds were 
required to give Treasury warrants for the future purchase of common 
shares, allowing American taxpayers an opportunity to profit from the 
possible upside of their investment.
  However, the Congressional Oversight Panel (COP), in its July 10, 
2009, oversight report, found that Treasury would be more likely to 
maximize taxpayer returns if it sold the warrants through an open, 
public and transparent auction instead of the current process that 
allowed 11 banks to repurchase their warrants at just 66 cents on the 
dollar.
  In fact, COP found that if Treasury uses this same approach to 
repurchase all remaining outstanding warrants, estimated at between 
$8.1 billion to $12.3 billion, American taxpayers would lose out on as 
much as $2.7 billion.
  American taxpayers took enormous risks in bailing out Wall Street and 
should be compensated.

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