Don't recycle TARP money, Hatch says

Sen. Orrin Hatch, R-Utah, wants to ensure that financial company bailouts do not become a perpetual part of the federal government.

So he introduced a bill Thursday with Sen. Blanche Lincoln, D-Ark., that would ban using money that is repaid to the Troubled Asset Relief Program from being put back into that program to bail out others.

Instead, it would require that paid-back money be put into the general fund to help pay down the nation's debt.

"TARP has become a revolving fund for the Treasury to nationalize our nation's private sector by using taxpayer money to acquire banks, insurance companies and auto manufacturers," Hatch said.

"When TARP was signed into law last fall, it was authorized to purchase up to $700 billion in toxic or troubled assets from financial institutions to restore liquidity to the system. Unfortunately, it is now being used as a go-to solution to address all of our nation's economic ills," he said.

Instead of just being used to help the financial sector, Hatch complained taxpayers are now "being required to bail out any company deemed 'too big to fail.' "

Hatch said, "It is time for Congress to ensure that TARP is used for its intended purpose and to require any money repaid to the Treasury Department to be returned to the general fund."

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