Congressman Zach Wamp said Wednesday he "strongly agrees with many taxpayers that financial institutions receiving government aid should be prevented from using one penny of taxpayer dollars for executive bonuses."
Rep. Wamp said the intent of the plan "was to help thaw frozen credit markets and restore confidence through increased lending.
“This was a loan program to unlock the credit market, not an opportunity for executives to make more money. Executives who have run their companies into the ground to the point of being rescued by the federal government certainly do not deserve pay raises or bonuses.
It is beyond outrageous that some institutions would even consider using taxpayer funds this way.”
The scope of the economic crisis has touched many Tennesseans – those saving for retirement, families needing loans for automobiles, homes or college and small businesses that need loans to meet payroll or expand their operations, he said.
However, recent news reports indicate that companies have different ideas in mind for taxpayer dollars: some institutions have considered using taxpayer dollars from the Troubled Assets Relief Program (TARP) for employee pay raises, executive bonuses and bank acquisitions, he stated.
“Congress needs to exert strict oversight and maintain accountability for taxpayer dollars to make sure there are no abuses,” said Congressman Wamp. “These frivolous uses of taxpayer dollars are not what Congress or the taxpayer ever imagined or will stand for.”