Thaddeus McCotter - TARP
The Great Deflation
In August of 2011, Congressman McCotter wrote an article titled the Great Deflation for the National Review Online. In that article, he discusses his his previous opposition to the TARP.
1. Using taxpayer money to bail out the managers, shareholders, and creditors of banks, and not requiring the failed, bailed-out banks to restructure to reduce their indebtedness. Washington passed TARP to protect bank bondholders and shareholders from suffering losses — and used your money and the money printed by the Federal Reserve to do it. As a result, while bank bondholders and shareholders were made whole (by the taxpayer), the banks remain over-indebted and cannot lend to new businesses. In fact, since 2008 we have been living through the very first period in modern American history in which banks have actually reduced the amount of money they lend. Now, small businesses, innovators, and workers — the primary job generators — lack sufficient access to credit to finance economic expansion and job creation.
2012 Presidential Campaign Website Statements
Reforming the Banks
The true cost of the financial meltdown caused by our banking system is in the trillions of dollars. TARP, a government fiasco, bailed out banks that the government deemed too big to fail, which rewarded them for wrecking our economy. Unemployment remains high, businesses cannot get loans and consumers cannot finance their homes or cars, yet our largest banks hoard their cash and are more profitable than ever. This must end.
We must have a diverse banking industry that competes for loans and deposits to form the backbone of our innovative economy. So that the taxpayers are never again called upon to bail them out, we must require banks to recapitalize without taxpayer subsidies so that they become willing to expand credit. We will apply antitrust rules to limit bank size. Restoring competition in the banking industry will reduce costs to borrowers and increase loans to entrepreneurs, which will fuel growth. Finally, we must implement a credible plan to end taxpayer support of Freddie Mac and Fannie Mae.
Voting Record
Emergency Economic Stabilization Act
In October of 2008, the House passed the Emergency Economic Stabilization Act of 2008. Support and opposition to the legislation were both bipartisan. Thaddeus McCotter voted against the Emergency Economic Stabilization Act, which created the Troubled Asset Relief Program (TARP).
Thaddeus McCotter voted against the Emergency Economic Stabilization Act, which created the Troubled Asset Relief Program (TARP).
Emergency Economic Stabilization Act
In September of 2008, the House made an attempt to pass an initial version of the Emergency Economic Stabilization Act of 2008. The attempt failed 205-228. Thaddeus McCotter voted against the initial passage of the Emergency Economic Stabilization Act.
Thaddeus McCotter voted against the initial passage of the Emergency Economic Stabilization Act.
Sponsored and Cosponsored Legislation
This representative has not been identified as sponsoring or cosponsoring significant legislation related to this title.