Freedom Index 2009

S.J. Res. 5: Relating to the disapproval of obligations under the Emergency Economic Stabilization Act of 2008.

• 01-15-2009 Senate Vote 5 (Passage)
  

TARP. S.J. Res. 5 would prevent the release of $350 billion more to the Treasury for use in stabilizing the financial system. The Emergency Economic Stabilization Act of 2008 had provided $700 billion to the Treasury, only half of which was released to initiate the Troubled Asset Relief Program (TARP). The act was written so that the Treasury could get the second $350 billion unless both chambers of Congress disapproved.

The Treasury Department grievously lacked transparency and accountability in using the first $350 billion, which was not used as originally planned and certainly did not solve the credit crisis. It did, unfortunately, preserve the influence of some dominant banks rumored to be insolvent and give them the means to potentially buy up solvent competitors, other assets, or perhaps to rig the financial markets. Atrociously managed banks and other companies should face liquidation, not be bailed out at taxpayer expense. Moreover, the House is to control the nation’s spending, not the Treasury Secretary. The Constitution does not authorize Congress to delegate its lawmaking powers to the executive branch, nor to grant financial aid or loans to private companies, i.e. banks and automakers.

This joint resolution to disapprove the release of the second $350 billion was defeated 42-52 on January 15, 2009 (Roll Call #5). A subsequent House vote on an identical resolution would therefore be to no effect or merely symbolic.

The John Birch Society supported this joint resolution.

The final result: Rejected

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