JOHNSON, SHELBY CALL ON PRESIDENT OBAMA TO NOMINATE TARP WATCHDOG REPLACEMENT

WASHINGTON D.C. –  U.S. Senators Tim Johnson (D-SD) and Richard Shelby (R-AL), Chairman and Ranking Member of the Committee on Banking, Housing, and Urban Affairs, yesterday sent a letter to President Barack Obama urging him to quickly nominate a replacement for outgoing Special Inspector General for the Troubled Asset Relief Program (SIGTARP) Neil Barofsky.

 

“We cannot allow Mr. Barofsky’s departure to mark the end of tough oversight of TARP.  Billions of taxpayer dollars remain at stake,” Senators Johnson and Shelby wrote.  “We are troubled by recent news reports that some may be seeking to influence and undermine the selection of his successor.  The American people, however, deserve the assurance of having a strong watchdog at SIGTARP rooting out waste, fraud or abuse in the use of these funds.”

 

Below and attached is a copy of the letter.

 

April 5, 2011

 

 

President Barack Obama

The White House

1600 Pennsylvania Avenue, NW

Washington, DC 20500

 

Dear President Obama:

 

            In a letter to you on February 14, 2011, Mr. Neil Barofsky announced his intent to resign his position as the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) last week.  We are writing to urge you to promptly nominate a strong watchdog to replace Mr. Barofsky who will be fully focused on protecting U.S. taxpayers in the administration of TARP.

 

At a hearing we recently held on TARP oversight, we received an update from Mr. Barofsky on SIGTARP’s tenacious and effective oversight efforts on behalf of taxpayers.  Despite the fact that the Department of Treasury lost the authority to create new programs under the Emergency Economic Stabilization Act (P.L. 110-343) last October, TARP is not over.  The program currently has roughly $150 billion in funds outstanding, and Treasury has the authority to disburse billions of more dollars through existing programs.  In fact, the dissolution of the Congressional Oversight Panel on April 3, 2011, makes a strong, independent SIGTARP more important than ever.

 

We cannot allow Mr. Barofsky’s departure to mark the end of tough oversight of TARP.  Billions of taxpayer dollars remain at stake.  We are troubled by recent news reports that some may be seeking to influence and undermine the selection of his successor.  The American people, however, deserve the assurance of having a strong watchdog at SIGTARP rooting out waste, fraud or abuse in the use of these funds.

 

Sincerely,

 

 

 

 

TIM JOHNSON                                                         RICHARD C. SHELBY

Chairman                                                                     Ranking Member

 

 

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