Bond: Obama Bank Rescue Plan Short on Details, Long on Uncertainty
WASHINGTON, DC – U.S. Senator Kit Bond today stressed that the Administration’s new financial rescue strategy raises serious questions for taxpayers and fails to provide real answers about how the plan will solve our nation’s serious housing and financial crises.
“Unfortunately, the plan rolled out today is just a new coat of paint on the old outhouse,” said Bond.
Yesterday, Treasury Secretary Tim Geithner outlined the Obama Administration’s new plan to resolve the financial crisis and reform the “Troubled Asset Relief Program” or TARP. After closely reviewing the so-called plan, Bond questioned the timing since it provides no real details and raises more questions than it answers for taxpayers and policy makers, especially on the heels of a trillion dollar spending bill.
Bond stressed that taxpayers are owed answers to the following critical questions:
How much will taxpayers be on the hook for under this plan? Based on the limited information provided by the Administration, it appears that this new plan could cost taxpayers up to an additional $2 trillion, on top of the trillion-plus spending plan the Democrats are pushing through Congress this week.
How will this private-public investment trust address the bad assets that are poisoning our financial system? The new plan fails to provide details on how it will realistically draw private investment and capital into this effort when valuation problems remain.
How does this plan ensure there is proper management and oversight to protect taxpayers? It’s uncertain whether the new Administration will have the right people with the right skills to run the new plan – an even more pressing question since the plan the current Treasury staff unveiled lacks any real substance.
How does this plan coordinate with other nations to address the global credit crisis? To deal with a global credit crisis there must be coordination with other nations – coordination that is mandated in the Emergency Economic Stabilization Act Congress passed in October 2008. This plan fails to provide details on this critical component of recovery.
All Americans should be concerned about the government’s response to the housing and financial crises, stressed Bond. Our financial markets make up the lifeblood of our economy, which families depend on to buy homes and cars, students need to receive loans, and small businesses must have to purchase supplies and meet payroll needs. Addressing this crisis is critical to protecting Main Street families, workers, and small businesses from even more suffering. Bond pointed out that despite the need for a government response, both Congress and taxpayers are still waiting for adequate accounting of how the first $350 billion was spent and will not fall into the same trap a second time with a new Administration.
“There’s too much mouth and not enough marrow – I need to know more to ensure that taxpayers won’t be left holding the bag,” said Bond.