Chairman Frank Seeks to Amend TARP
Rep. Barney Frank, Chairman of the House Financial Services Committee, today issued an outline of a bill that would amend the TARP provisions of the Stabilization Act. The bill, which Chairman Frank hopes to bring to the House floor by next week, would require Treasury “to develop a program, outside of the TARP, to stimulate demand for home purchases and clear inventory of properties.” The proposed legislation would require the Treasury to develop its foreclosure mitigation plan by March 15 (for implementation by April 1) and condition the release of the final $350 billion of TARP funds on the use of at least $50 billion for foreclosure mitigation. The bill also would require recipients to use TARP funds for lending and to agree to stronger limits on executive compensation. Insured depository institutions also would be subject to new reporting, monitoring and accountably requirements. The House Financial Services Committee has scheduled a hearing on the use of TARP funds for Tuesday, January 13. Click here for the House Financial Services Committee's outline of the proposed bill, and click here for the entire bill.
