U.S. Rep. Tom Cole isn’t able to limit funds for bailouts

BY CHRIS CASTEEL Comments 1
Published: September 25, 2009

WASHINGTON — Rep. Tom Cole tried unsuccessfully Thursday to prevent the Treasury Department from using money next year from the financial bailout program approved in 2008.

U.S. Rep. Tom Cole, R-Moore. Oklahoman archives

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Background

The U.S. Treasury has obligated $443.8 billion from the Troubled Asset Relief Program fund to specific institutions. Banks have paid back $70.3 billion as well as nearly $9.4 billion in dividends and interest payments.

From The Associated Press

Cole, R-Moore, offered an amendment that also would have barred the department from using money from the Troubled Asset Relief Program that had been paid back by banks or other entities that borrowed it.

Cole’s amendment failed on a party-line vote in a House-Senate committee writing the final version of a spending bill for legislative activities.

The $700 billion bailout program, approved by Congress last October, was set to expire at the end of this year, though the Treasury secretary has the option to extend it until Oct. 3, 2010. A senior Treasury official on Thursday said the program may need to be extended because "significant parts of the financial system remain impaired.”

Cole and other lawmakers have criticized the current and previous administrations for using the money for auto company bailouts and for other purposes that were outside the original concept of rescuing troubled banks.

"Our country’s enormous debt is just as much of a threat to the fiscal stability of our nation as the troubles of private companies that received TARP monies were,” Cole said. "Preventing the Treasury from extending the TARP program and stopping the program’s repaid funds from being respent are important provisions that should have been passed.”

The committee also defeated an amendment by Cole that would have prevented funding for so-called "czars,” or advisers hired by President Barack Obama that aren’t authorized by law.

The Senate debated the same issue on Thursday and killed an amendment that would have barred funding for Obama’s adviser on environmental issues. Conservatives have complained that Obama has been appointing advisers that don’t have to answer to Congress.