Question by Poke_the_Bear: Does Barney Frank have the best interest of the taxpayers at heart, with his newest idea, or his own butt?
Please, don’t go there. I beg you. It’s way too easy.
The original TARP legislation required that money made from the program “shall be paid into the general fund of the Treasury for reduction of the public debt.”
Frank, however, wants to spend the money before it can be used to pay down anything. First, the “TARP for Main Street” proposal would take $ 1 billion “from dividends paid by financial institutions that have received financial assistance provided under…the Emergency Economic Stabilization Act” and apply it to a trust fund that Frank has long wanted to create for low-income rental housing. (The measure, unfunded, was part of last year’s bailout of Fannie Mae and Freddie Mac.) Next, Frank would take $ 1.5 billion from TARP dividends for a so-called “neighborhood stabilization” fund.
The “TARP for Main Street” bill would also spend $ 2 billion, apparently from remaining TARP funds, to subsidize people who are delinquent on their mortgages, and another $ 2 billion to “stabilize multifamily properties that are in default or foreclosure.”
Spending the dividend payments now, as Frank proposes, would reduce the chance that TARP might ever be a break-even deal for the taxpayers. “We don’t know if TARP is going to be making any money, so taking the dividend payments going back to Treasury is pretty questionable,” says one House GOP aide. Indeed, in its June report, the GAO revealed that 17 troubled institutions have not paid their dividends, much less repaid the TARP money itself. And last week, the Wall Street Journal reported that three other institutions were not paying dividends. But now, Frank is proposing that dividends be spent immediately.
Answer by TNT
old studder brain is just trying to cover his mistakes.
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