Sam Johnson Demands Answers and Accountability On the Reckless Bailout

Press Release

Today U.S. Congressman Sam Johnson (3rd Dist.-Texas) took issue with the latest developments of the so-called $700 billion economic rescue plan initially designed to buy up toxic mortgage assets to help propel the American economy out of a terrible housing slump.

"The American people want, need and deserve answers and accountability on the bailout money," said Johnson, who opposed the bailout proposal. "Congress can not approve the second $350 billion without an honest assessment of how it will be spent. To date, the Bush Administration has spent $290 billion with zero accountability and little to show for it."

Yesterday Treasury Secretary Henry Paulson changed course on the $700 billion financial sector bailout that would use taxpayer dollars to purchase troubled assets from banks in favor of a new plan.

Paulson's new plan aims to expand the bailout program into the markets that provide support for credit card debt, auto loans and student loans. This news came on the heels of the announcement that the government would pump additional taxpayer dollars into lagging AIG; AIG employees have taken two luxury getaways since the bailout.

"Secretary Paulson keeps changing the rules. He's completely abandoned any thoughts of buying troubled assets with the money Congress threw at him. Bad mortgages are the kernel of what's gone wrong here. If all we are going to do is mask the symptoms and not address the cause, we're never going to put the economy on a healthy track," continued Johnson.

"Secretary Paulson is accountable to absolutely no one because the Congressional Oversight Panel is yet to convene. He's apparently decided to change tax law on a whim. Only Congress can change the law so whatever he has proposed can not stand. Paulson and the people at the Treasury Department need to be reined in," said Johnson.

Johnson has voiced opposition to the idea of a "free-for-all" bailout since news first broke of the initial Paulson proposal. Sky-high executive compensation and pricey severance packages for top corporate leaders, among other things, have drawn Johnson's ire.

Johnson represents portions of Dallas and Collin Counties.

Source