Senate Banking Committee Hearing: Oversight of the Emergency Economic Stabilization Act: Examining Financial Institution Use of Funding Under the Capital Purchase Program, November 13, 2008

• Opening Statement of Chairman Christopher J. Dodd, “Oversight of the EESA: Examining Financial Institution Use of Funding Under the Capital Purchase Program” – “…five trillion dollars have been committed in several forms, including: the guarantee of all non-interest bearing deposit accounts at federally insured banks and thrifts…The Fed alone has committed up to one trillion in tax dollars so far to the recovery effort…I think I speak for many members of the Committee and the Senate in saying that we want to see more progress from our friends in the financial sector – more progress in foreclosure mitigation, in affordable lending, and in curbing excessive compensation.”
  • Washington Post: Bailout Lacks Oversight Despite Billions Pledged – “In the six weeks since lawmakers approved the Treasury’s massive bailout of financial firms, the government has poured money into the country’s largest banks, recruited smaller banks into the program and repeatedly widened its scope to cover yet other types of businesses, from insurers to consumer lenders…Yet for all this activity, no formal action has been taken to fill the independent oversight posts established by Congress when it approved the bailout to prevent corruption and government waste.”
  • Treasury news release: “Today’s story in the Washington Post leaves out critical steps taken by Treasury to ensure that there is strong oversight in place as the Emergency Economic Stabilization Act is implemented.”
  • Reuters, Commentary: TARP and Fed facilities unravel – “The twin pillars of the rescue program are the multiplicity of liquidity and lending programs being offered by the Federal Reserve and the Treasury’s Troubled Asset Relief Program (TARP). Both programs are now in deep trouble. In fact the various rescue packages risk becoming a textbook example of how poorly designed programs can fail to achieve their objectives.”
  • Joint Letter of Concern to Secretary Paulson After His Announcement to the Change Intent of the Troubled Asset Relief Program, November 13, 2008
  • Related postings on financial system