CONGRESSWOMAN ELISE STEFANIK
The House is expected to consider H.R. 1242, on the House floor on Wednesday, December 2, 2009, under a motion to suspend the rules, requiring a two-thirds majority vote for passage. This legislation was introduced by Rep. Carolyn Maloney (D-NY) on March 2, 2009.
H.R. 1242 amends section 113 of the Emergency Economic Stabilization Act (EESA) of 2008 (Public Law 110-343) to direct the Secretary of the Treasury to provide to the Special Inspector General of the Troubled Asset Relief Program (TARP), the Comptroller General, and the Congressional Oversight Panel ongoing, continuous, and close to real-time updates of the status of funds distributed under EESA through a standardized electronic database that combines information from public and private sources to track the status of the funds distributed under EESA.
The legislation requires the Secretary to: (1) compare the data in such database with any other data for any activities that are inconsistent with EESA purposes; and (2) collect from all federal agencies any regulatory filings, internal models, financial models, and analytics associated with the financial assistance on at least a daily basis in order to help the Secretary to determine the effectiveness of TARP in stimulating prudent lending and strengthening bank capital. H.R 1242 also directs the Secretary, if TARP goals are not being met, to work with the federal agencies supplying the information to have them provide the recipients with recommendations for better meeting such goals. Lastly, the bill requires the Secretary to adjust the future uses of TARP assistance if such goals are not met even following such recommendations.
A CBO cost estimate of H.R. 1242 is approximately $17 million. However, according to the Financial Services Committee staff, there is a 50 percent subsidy rate for unused TARP funds. Thus, in order to offset the entire amount, TARP's authority must be reduced by $34 million.