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House Clears Measure Strengthening Oversight of Bailout Funds

WASHINGTON, DC - Today, Congressman Mike Michaud praised House passage of the Special Inspector General for the Troubled Asset Relief Program Act (S.383), which expands the Special Inspector General's (SIG) authority to ensure the efficient and effective use of taxpayers' funds.  Passage of the bill today clears it for President Obama's signature.

"I voted against the Wall Street bailout in the first place because it contained insufficient safeguards to protect the taxpayers' investment," said Michaud.  "It has become abundantly clear since passage of the bailout that it hasn't lived up to its billing on a number of levels.  Firms that have received bailout funds have hoarded taxpayer funds, bought other companies, and paid lavish executive bonuses.  The Inspector General has said that he needs more staff to conduct proper oversight.  This bill will help him better protect taxpayers by providing increased investigative, reporting and hiring authorities."

The bill broadens the authority of the SIG to oversee the financial bailout by:

  • allowing the SIG to audit or investigate any action taken under the bailout law;
  • giving the SIG authority to hire more auditors and investigators quickly;
  • requiring Treasury to explain why any recommendations by the SIG are not followed; and
  • mandating the SIG to report to Congress by September 2009 on how recipients of TARP funds are spending American taxpayer dollars.

On March 19th, the House passed and Michaud supported H.R. 1586, a bill that would reclaim taxpayer money and deny unworthy executives of bailed out firms the bonuses doled out to them.  H.R. 1586 would tax bonuses at a rate of 90 percent for executives who earn more than $250,000 and work at companies that have received $5 billion or more in bailout funds.  Michaud is also a cosponsor of the H.R.1518, the Bailout Bonus Tax Bracket Act, which would tax 100 percent of the bonuses of bailout firm executives.

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