Financial Services Committee
Hensarling Statement on Five-Year Anniversary of TARP
Washington, Oct 3 -
Financial Services Committee Chairman Jeb Hensarling (R-TX) made the following statement today on the five-year anniversary of the Troubled Asset Relief Program (TARP). Chairman Hensarling also served on the Congressional Oversight Panel for TARP.
“During my work on the Congressional Oversight Panel for TARP, it became clear to me that the great tragedy of the financial crisis was not that Washington failed to prevent it but that Washington helped lead us into it. As we reflect on the five-year anniversary of the financial crisis and subsequent bailouts, it’s disheartening to see that Washington has failed to learn any lessons and continues flawed policies that created this mess. Washington elites still have the power to take hardworking taxpayers’ money to bail out cronies who make bad bets. And nothing in the Democrats’ response to the crisis - the Dodd-Frank Act - will prevent another bailout. In fact, it writes bailouts into law.
“It is crucial to remember that the biggest bailout of them all didn’t go to a bank or car company – it went to Fannie Mae and Freddie Mac who received nearly $200 billion from taxpayers. People who couldn’t afford to pay their own mortgage were forced to pay for someone else’s. Folks who couldn’t save for their own retirement were paying wealthy executives at Fannie and Freddie millions of dollars in bonuses. The president likes to talk about fairness. What’s fair about bailouts?
“Just last week the Obama administration admitted the Federal Housing Administration is not only broke, it is bailout broke and will require a $1.7 billion taxpayer-funded bailout. That’s nearly double the bailout the administration predicted it might need just five months ago, and it’s an unacceptable use of taxpayer dollars.
“The Financial Services Committee recently passed sustainable housing finance reform legislation, the Protecting American Taxpayers and Homeowners (PATH) Act, that will ensure taxpayers will never again be forced to write bailout checks to pay for Washington’s failed housing policies.
“Nothing symbolizes the limitless power Washington elites have over our economy like politicians bailing out the wealthy and well-connected. We can’t expect a strong economy with capitalism on the way up and socialism on the way down, and that’s why bailouts must end.”