Date: 2009-01-15
Speaker: CORRINE BROWN (democrat)
Chamber: H
State: Florida

Mr. Chair. I want to thank Chairman FRANK for his leadership in developing this bill. I appreciate the time you and your staff have spent on the issues important to the Amerfcan people. You were instrumental in getting an amendment regarding tax credits in the managers amendment. I want to speak on the situation today. I voted for TARP when it was brought up last year. I am extremely disappointed as to how the banking industry used the taxpayer funds. The way the administration disbursed the first half of the TARP funds was not in the interest of the American people. It was in the interest of those who caused this crisis in the first place. The investment bankers. and elite financiers in New York were the first in line to claim some money and then left nothing for the people holding the bag. the homeowners and the small businesspeople like those from my district in Florida. The administration moved from helping those who held mortgages that were in foreclosure to bailing out the large banks. These banks took that money and put it in their pockets. They paid their shareholders and continued to pay bonuses to their executives. The banks called in their loans and eliminated lines of credit. They bought other banks. They closed businesses and used every. legal means to get as much money as they could. What the banking industry did was not our intent. The Europeans used the government money to help stimulate the economy. Every pound or euro given to banks was required to be loaned out. As opposed to the banks here who called in loans and did away with lines of credit. I would like to ask Chairman FRANK a couple of questions at this time: "Chairman FRANK. I am very concerned the money we are authorizing for the TARP program will not make it to the American people and will not be used for what we are intending it to be used for. We need to get money to people for (1). to end the foreclosures. of which thousands a day are happening all over the country. (2) auto loanspeople cant get credit to buy a car and (3) school loansthe banks are calling in the notes. prohibiting our young people from getting an education. The American people need this money. What protections have you included in the bill to ensure this happens?" Second. I have a question regarding the reappraisal of real estate collateral that is affecting the home builders in our country. I have an amendment in front of the rules committee which would permit lenders to extend or modify loan terms for home builders. so they could continue to pay interest without forcing them to pay large sums to the principal while in this economic crisis. I understand this issue is not covered by this bill. What assurances do I have that you will consider this issue in the future in your committee? Mr. Chairman. thank you very much for your explanations. In my district. along with most of the country. people cannot get the loans to consume. which is the basis for our economy. I am pleased you incluoed these provisions in the bill. to help small businesses all over our country. Thank you for your hard work on this bill. to bring relief to those who are suffering from foreclosures and for your firm leadership on this issue for the many years you have served the people of Massachusetts and America. It is important the TARP funds being spent by the Administration be used for the benefit of the American people. From what I have seen. it does not.