Requesting a TARP Disapproval Resolution

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United States Congress

Washington, DC 20515

Dear Member of Congress:

On behalf of the millions of taxpaying citizens represented by the public interest organizations below, we write to strongly encourage you to swiftly pass a notice of disapproval on releasing the remaining $350 billion in Troubled Asset Relief Program (TARP) funds.

From the beginning, the TARP plan was questionable, but a number of Members nonetheless resolved to support it.  It should be clear now that this was a mistake.

The stated purpose of the TARP was to purchase toxic mortgage assets.  Secretary Paulson abandoned this concept immediately after the signing ceremony. The TARP was also designed to reintroduce the flow of credit into the market and help stabilize Wall Street.  To date, neither has been accomplished.

In addition to misleading Congress about his intent on the use of TARP funds, Secretary Paulson has invaded the free market, propping up some companies to the detriment of others and purchasing stock in banks without requiring accountability or transparency about the use of taxpayer funds.

The TARP legislation specifically requires that before the second half of the $700 billion is released, the President provide Congress with a written report detailing how the additional funds are to be used.  A request to spend the second half of the funds without restraint does not meet the requirements set forth in the bill.  In addition to requiring this detailed plan, Congress should require an accounting and detailed explanation on how the initial TARP funds have been used and the prospect of a taxpayer recovery of these funds.

Congress now has an opportunity to preserve some of the taxpayers’ assets and should spend the necessary time studying the underlying causes of the economic down-turn by passing a TARP disapproval resolution.  We encourage you to take such action.

Sincerely,