11.20.08

Cantwell Calls on Secretary Paulson to Protect Taxpayers and Ensure Transparency

WASHINGTON, DC – Today, U.S. Senator Maria Cantwell (D-WA) joined other members of the Senate Finance Committee in urging Treasury Secretary Henry Paulson to protect taxpayers following passage of the Emergency Economic Stabilization Act of 2008.  Specifically, Cantwell and her colleagues expressed their concern regarding the limits placed on executive compensation.   This week, the Treasury Department announced that the Troubled Asset Relief program, to which many of the executive compensation provisions applied, will not be implemented. 
 
“American families are still worried about their ability to make ends meet;  they shouldn't also have to worry that Congress  is stepping back from its oversight of the Treasury Department’s  handling of $700 billion of taxpayers’ hard-earned money to shore up the financial system," said Cantwell.  "Now is not the time for companies to put out their hand and not expect limits on how they should use taxpayers' dollars. I, along with Chairman Baucus and my other Finance Committee colleagues,  want to be sure that Treasury takes all necessary steps to ensure that taxpayers do not feel their pockets have been picked in order to unjustly reward financial institution executives.”
 
 [The text of the letter follows below] 
 
The Honorable Henry Paulson, Jr.
Secretary
U.S. Department of Treasury
1500 Pennsylvania Ave., NW
Washington, DC 20220
 
Dear Mr. Secretary:
 
We are writing to you regarding the executive compensation provisions in the Emergency Economic Stabilization Act of 2008 (EESA).  The language of the EESA legislation gave Treasury great latitude in carrying out the intent of the rescue package.  In particular, EESA authorized Treasury to develop guidance regarding the implementation of the executive compensation provisions which were a critical part of the legislation.  We appreciate Treasury’s quick work in developing and issuing guidance outlining the implementation of the executive compensation provisions that were so important in the development of the legislation. 
We continue to be extremely interested in the implementation of EESA, particularly the limits on executive compensation for senior executives of institutions that benefit from the program.  In light of Wednesday’s announcement that the Troubled Asset Relief program, to which many of the executive compensation provisions applied, will not be implemented, we want to convey our strong concern that the executive compensation provisions continue to be a priority in the implementation of EESA. 
We expect that the Treasury, in implementing EESA, will carry out both the letter and the spirit of the law and the accompanying guidance.  We also look forward to continued transparency throughout the process – on behalf of both Treasury and the companies involved in the rescue program. 
 
We look forward to continuing to work with Treasury to ensure that EESA is implemented as intended.
 
Thank you for your prompt attention and cooperation in this matter.
 
 
Sincerely,
 
 
Sens. Max Baucus, John D. Rockefeller, John F. Kerry, Blanche L. Lincoln, Ken Salazar, Ron Wyden, Olympia J. Snowe, Maria Cantwell, and Charles E. Schumer
 
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