tomgraves.house.gov

Graves, Tom
Contact: Jennifer Hazelton (202) 225-5211


Rep. Graves Statement on Report Taxpayers Owed Billions in Bailout Money

Washington, Jan 26 -

Rep. Tom Graves (R-GA-09) issued the following statement in response to a report by a government watchdog group that found that companies still owe U.S. taxpayers $132.9 billion from the financial bailout.  The Troubled Asset Relief Program (TARP) is a $700 billion project launched in September 2008 to bailout private financial companies.  The report also found that some of the bailout money may never be repaid to taxpayers. 

“The role of the federal government is to protect the free market, not to manipulate it.  Whenever the government intervenes in the market place to pick winners and losers, the American people always get stuck with the tab.  While I was not a member of the House when Congress passed the bailout, I most certainly would have voted against it.  This report’s determination that taxpayers are still on the hook for more than $130 billion is further evidence that the government should get back in the box that it was designed to fit, and let the free market work."

“Government has a poor record of making wise decisions with taxpayer dollars.  This report is further evidence of that.  This is why I supported H.R. 830, the FHA Refinance Program Termination Act, and H.R. 839, the HAMP Termination Act.  Unfortunately, these common sense bills to end these two failed projects and save taxpayer dollars have been stonewalled by the Senate.”

Background:

Rep. Graves supported H.R. 830, the FHA Refinance Program Termination Act, and H.R. 839, the HAMP Termination Act.  H.R. 830 would rescind any unused TARP funds directed to the Federal Housing Administration Refinance Program to pay down the overwhelming federal debt.  FHA Refinance Program dollars are not given to homeowners, but to lenders and banks, and only helped 44 people over two years. 

H.R. 839 would rescind any unused TARP funds for the Home Affordable Modification Program (HAMP).  President Obama directed $30 billion to HAMP through TARP with the promise of HAMP helping four million homeowners. However, HAMP has only helped about 13 percent of the homeowners President Obama estimated, and the re-default rate among those helped is alarmingly high.