Washington, DC - U.S. Rep. Gabrielle Giffords voted for a tough accountability measure today that ensures funds designated under the Troubled Assets Relief Program (TARP) will be spent responsibly and transparently to help stabilize our economy and get credit flowing again to families and businesses.
The TARP Reform and Accountability Act passed this afternoon by a bipartisan vote of 260 to 166.
"The TARP program has been horribly mismanaged since Congress approved funding for it three months ago," Giffords said. "I am pleased that this legislation will dramatically reform TARP by providing oversight and accountability, and most importantly, relief for homeowners facing foreclosure."
Arizona has been hit particularly hard by the wave of foreclosures, ranking third in the nation. In November, 1 in 198 Arizona homes received a foreclosure notice.
The TARP Reform and Accountability Act calls on the Treasury to immediately commit up to $100 billion of TARP funding on a comprehensive foreclosure mitigation plan. It also requires the Treasury to develop a program outside of TARP to ensure the availability of affordable mortgages by purchasing mortgages and mortgage-backed securities.
In addition, the reform package includes measures that will:
- Strengthen accountability, close loopholes and increase transparency by forcing banks to report how government funds are being spent;
- Affirm that TARP should be used to benefit small financial institutions, consumer lending, and municipalities; and
- Limit compensation and bonuses for executive at firms participating in TARP.
"The reforms guaranteed in the TARP Reform and Accountability Act will target this program's dollars more effectively, bringing smart fiscal policy to the management of this multi-billion dollar measure," Giffords said.
Giffords supported the final passage of the Emergency Economic Stabilization Act in the 110th Congress which authorized $700 billion for the Treasury to purchase troubled assets from financial institutions. The legislation was signed into law by President Bush in October.