Wall Street Reform Update
FACT CHECK: Wall Street Reform Reduces the National Debt by Shutting Down TARP
What Republicans are saying: The TARP provision in Wall Street Reform violates the Emergency Economic Stabilization Act's (EESA) requirement that proceeds from TARP investments must go to the Treasury.
Who’s the latest to say it:
Rep. Gary Miller (R-CA): “This bill once again breaks our promise to the American people that excess TARP funds would go to pay down the debt and deficit.” [House Floor, 6/30/10]
Here’s the truth: Wall Street Reform ensures that TARP investment proceeds (income from interest, dividends, warrants, etc.) will continue to go immediately to the Treasury to pay down the national debt, as currently required by Section 106 of EESA. In fact, Wall Street Reform shuts down TARP, eliminates Treasury’s ability to recycle TARP repayments and requires that all TARP repayments must immediately go to Treasury – helping reduce the national debt.
###