Fortenberry Calls on Congress to Reevaluate Bailout Plan

Press Release

Congressman Jeff Fortenberry has joined 14 of his colleagues calling for a vote on using the second half of the $700 billion bailout passed last month. Fortenberry, who is a cosponsor of HR 7276, opposed the original bailout plan and urges more direct congressional oversight of U.S. Treasury and Federal Reserve spending.

"Congress has the responsibility to review how the original bailout funding has been spent and whether it is having the desired effect before more money is obligated," Fortenberry said. "This is too serious for the U.S. Treasury to be making up plays in the huddle."

Fortenberry noted that Treasury originally planned to use the bailout funding for buying up troubled assets, but shifted gears shortly after the money was approved. Treasury has since committed $250 billion for direct capital investments in banks, obligating most of the first half of the bailout money. Under current law, after Treasury submits a plan, it may spend the additional $350 billion unless Congress votes to block it.

In addition, Fortenberry noted the need for Congress to gain a clearer understanding of the impacts of the Federal Reserve's creation of nearly $900 billion dollars of new "rescue" loans. Fortenberry in recent weeks has also helped introduce a bill to prevent the CEOs of Fannie Mae and Freddie Mac from receiving "golden parachutes," millions of dollars in severance pay, and has supported efforts designed to prohibit taxpayer money from rewarding those that contributed to the nation's current financial problem

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