Jan 26, 2011
Today, Congressman Patrick McHenry (NC-10), Chairman of the Oversight Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs, issued the following statement after receiving the Quarterly Report to Congress of Special Inspector General for the Troubled Asset Relief Program [SIGTARP] Neil Barofsky.
“Mr. Barofsky’s findings are deeply troubling. This report clearly shows that TARP created significant moral hazard and rather than eliminating ‘Too Big to Fail,’ the Dodd-Frank regulations codify bad policy in to law. This is not only putting smaller institutions at a competitive disadvantage, it is a continuation of the perverse incentives that led to the original crisis.
“Furthermore, the so-called Home Affordable Modification Program [HAMP] yet again gets a failing grade. What will it take for the Treasury to realize that serious changes must be made to this program? Homeowners are hurting and this program continues to do more harm than good.
“As part of our Pledge to America, House Republicans promised to put an end to taxpayer funded bailouts. As Chairman of the Oversight Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs I intend to bring attention to this important issue.”