End The TARP Program
December 9, 2009 -
December 9, 2009
TARP Is Not Making A Profit For Taxpayers. To date, the Treasury Department has received around $13 billion from interest and dividend payments, the sale value of stock and the sale of stock warrants for the government's financial interventions using the TARP program, and Treasury projecting that number to increase to at least $19 billion. But that hardly makes up for the $159 billion that the CBO projects that TARP will cost taxpayers. The Treasury Department has already acknowledged losing $60 billion alone on the government's interventions in Chrysler, GM and AIG.
TARP Should End Immediately And All TARP Payments Should Go Toward Reducing The Deficit. President Obama has extended the TARP program to October 3, 2010, and both he and House Democrats are proposing to tap TARP funds to pay for programs unrelated to the financial emergency that our economy faced in 2008. In fact, Chairman Frank's "Managers Amendment" to H.R. 4173 would divert $4 billion from TARP a number of foreclosure mitigation and neighborhood stabilization programs.
- TARP was originally passed in response to an extraordinary crisis in our financial markets, and Congress intended for taxpayers to be repaid once the crisis subsided. TARP was never intended to be used as a revolving slush fund to pay for the Majority's political, economic or social agenda. Any unused or repaid TARP funds should be returned to those who originally paid for it - the American taxpayers.
- Current law states that repaid TARP funds are to be used to reduce the debt, and Speaker Pelosi's own TARP press release of September 29, 2008, assured Americans that they would be "repaid in full."
Taxpayers Should Not Be Asked To Sink More Money Into The Democrats' Failed Housing Agenda. Congress, the Administration, and the private sector have already put in place a number of programs intended to help struggling families stay in their homes. These programs have not achieved the goals they were intended to accomplish, and pumping more taxpayer money into them will not make them any more effective. Existing foreclosure mitigation and neighborhood stabilization programs include:
Congressionally Authorized Programs
Neighborhood Stabilization Program
Description: Provides funds to states, localities and non-profits to purchase foreclosed and abandoned home and provide technical assistance.
Cost: $5.85 billion: $3.92 billion [authorized by H.R. 3221]; $1.93 billion [authorized by H.R. 1].
Stimulus Homelessness Prevention Programs
Description: $1.5 billion to states through CDBG program to provide renter assistance, reducing homelessness and avoiding entry into shelters.
Cost: $1.5 billion [authorized by H.R. 1]
National Foreclosure Mitigation Counseling Program
Description: Provides Neighbor Works funds to distribute to eligible groups to carry out foreclosure prevention counseling.
Cost: $410 million: 2008 Consolidated Appropriations Act: $180 million; H.R. 3221: $180 million; 2009 Omnibus: $50 million.
Hope for Homeowners
Description: Provides distressed homeowners with new FHA-backed mortgages with principal write downs.
Cost: H.R. 3221 authorized up to $300 billion in H4H mortgage principal to be insured by FHA.
Making Home Affordable
Description: Reduces mortgage payments through re-financings and loan modifications; provides foreclosure alternatives.