Senator Martinez to Treasury Secretary: "Free up lending..."

Press Release

U.S. Senator Mel Martinez (R-FL) today called on U.S. Treasury Secretary Tim Geithner to take immediate steps to free up the lending markets affecting potential homebuyers and Florida business owners and manufacturers. The senator also asked Secretary Geithner to support the TARP Transparency act that Martinez and Sen. Mark Warner (D-VA) have introduced requiring full transparency in how the $700 billion in Troubled Asset Relief Program funds are spent.

"Regulators are telling banks to grow their capital and then they're telling them they can't put so many real estate loans on their books. In Florida, that's like telling a man in the desert he can't drink water," said Martinez, a member of the Senate Banking Committee.

Secretary Geithner responded he is aware of the concerns and agreed on the need for a better availability of capital among credit-worthy borrowers.

Martinez also called attention to the problems caused by the recent credit contractions that are affecting Florida industries including boat manufacturers and the time-share industry.

"There are businesses with great track records, who have buyers waiting to buy, that can't because the consumer finance market is still locked up," said Martinez. "The secondary loan market has dried up for industries that employ thousands of Floridians. It would be very helpful to the credit system to expand the availability of asset-backed securities. That alone would put many Floridians back to work immediately."

Secretary Geithner agreed to examine options for expanding the Term Asset-Backed Securities Loan Facility program so vibrant industries can participate.

Source