Skip to main content

Rep. Jeb Hensarling proposes bill to end the TARP program
Jun 15, 2009

Rep. Jeb Hensarling (R-Texas) has introduced legislation to end the Troubled Asset Relief Program (TARP) on Dec. 31, 2009. Rep. Hensarling, who is a member of the Congressional Oversight Panel for the Troubled Asset Relief Program, said the economic justification for TARP’s creation and taxpayer assistance to financial institutions no longer exists. He said that the stress tests and banks’ ability to raise capital have made it clear that TARP does not need to be extended. “The economic justification for TARP’s creation and taxpayer assistance to financial institutions no longer exists. It’s clear to me that the original goals for TARP--primarily financial stability and taxpayer protection--are no longer the aim of the program. It is increasingly being used instead to promote the economic, social and political agendas of the administration. “Through the stress tests regulators have assured us of financial market stability going forward, there is a defined capital hole and there is adequate unused TARP capital for this shortfall. In addition, banks are again raising capital in the private markets, which can serve to reduce the capital shortfall identified by the stress tests. If banks are unable to raise capital, there is adequate unused TARP capital for this shortfall. “As a result, my legislation puts a firm end point in place for TARP – December 31, 2009– the stress test results and the remaining unallocated TARP authority allow me to conclude that TARP does not need to be extended. “Members of Congress were told that TARP was an emergency measure, and should another economic emergency occur, the 111th Congress can take action. Furthermore, the Federal Reserve still retains its 13(3) unusual and exigent circumstances power, should they be needed.”   Key components of Rep. Hensarling’s legislation includes: ► Sets Dec. 31, 2009 as a firm end date for TARP. ► Banks that were stress tested can repay if they passed the stress test or complied with the requisite capital raises, consistent with the conditions set by the Treasury and Federal Reserve. ► Any bank that attempts to repay and is rejected must be told in writing how the bank can repay successfully. ► Guarantees well capitalized banks that have paid their TARP CPP dividends the right to repay the government. ► After a bank fully repays the TARP monies they owe, the Secretary of the Treasury must liquidate any remaining warrants. ► All preferred shares can be repurchased at the same price and private banks can repurchase the exercised warrant preferred shares at their pre-exercise price, if the private bank repays on or before Sept. 30, 2009. ► As banks repay TARP funds, the TARP spending authority is notched down accordingly dollar for dollar.    
Jun 15, 2009
CFPB Reports Trends In Financial Assistance

The latest developments from this study reveal that most consumers have exited the payment assistance they received at the start of the pandemic.

Analysis and Data
Jul 14, 2021
CFPB Orders GreenSky To Refund $9M In Unauthorized Loans

The consent order requires GreenSky to refund or cancel up to $9 million in loans for the customers harmed by this illegal conduct.

Regulation and Compliance
Jul 13, 2021
CFPB Warns Landlords And Consumer Reporting Agencies To Report Accurate Rental Information

Inaccurate rental or eviction information can unfairly block families and individuals from safe, affordable housing.

Regulation and Compliance
Jul 01, 2021
FHFA Mandates Quarterly Fair Lending Reports

FHFA issued orders for all enterprises to submit quarterly Fair Lending Reports with data and information to improve the FHFA’s capabilities. 

Regulation and Compliance
Jul 01, 2021
FHFA Follows CFPB To Protect Borrowers Once COVID-19 Foreclosure And Eviction Moratoriums End

The Federal Housing Finance Agency made it clear that Fannie Mae and Freddie Mac servicers are not permitted to make first notice or filing for foreclosure that would be prohibited by the CFPB protections for borrowers affected by COVID-19.

Regulation and Compliance
Jun 30, 2021
CFPB Finds Evidence Of Redlining And Deceptive Acts In 2020

Enforcement actions resulted in more than $124 million in consumer remediation and civil money penalties in 2020

Regulation and Compliance
Jun 29, 2021