Spencer Bachus SIGTARP Report Confirms “Too Big To Fail” Has Not Ended

WASHINGTON: Financial Services Committee Chairman Spencer Bachus made the following statement regarding the report by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP): “House Republicans said all along that the greatest weakness of the Democrats' financial regulation bill was that far from ending ‘too big to fail,’ it wrote that troubling doctrine into Federal law. The SIG-TARP confirmed that in its report.

"Secretary Geithner’s acknowledgment that ‘exceptional’ action may be required again in spite of the Dodd-Frank Act being law confirms what Republicans have long contended – that the doctrine of ‘too big to fail’ unfortunately remains alive and well in Washington, D.C. Republicans believe the ‘exceptional’ action needed is to end bailouts and send a clear signal taxpayers will never again be forced to rescue or subsidize a failed financial company, its obligations, its creditors or counterparties.

"During the debate on regulatory reform, Republicans introduced the only legislation that would end ‘too big to fail,’ end bailouts, and protect taxpayers. Our bill would have sent failed non-banks to an enhanced bankruptcy proceeding. This is the only way to protect taxpayers.

"We need to bring a real end to ‘too big to fail.’ Taxpayers and future generations should not be burdened with having to pay for the mistakes made on Wall Street."

Released Audit Report in PDF FORMAT: Extraordinary Financial Assistance Provided to Citigroup, Inc. - To fulfill SIGTARP’s mandate to promote the economy, efficiency, and effectiveness of TARP programs and operations, SIGTARP’s Audit Division has identified several aspects of TARP – some internal to Treasury and some external – that will be the general focus of its work. SIGTARP issues audit reports that address various topics associated with TARP operations. These reports make recommendations for positive change to improve the economy and efficiency of the TARP.

TEXT CREDIT: Committee on Financial Services • 2129 Rayburn House Office Building • Washington, DC 20515 • (202) 225-7502 For Press Inquiries: (202) 226-0471

IMAGE CREDIT: Spencer Bachus Washington Office 2246 Rayburn Building Washington, DC 20515 (p) 202-225-4921 (f) 202-225-2082