Right now, when banks pay back TARP funds there's no requirement that the funds be used to pay down the national debt. Without that restriction, Treasury department can reuse that money over-and-over again -- meaning that instead of being an emergency program, TARP could become a perpetual program.
That's why Senator Hatch, along with Democrat Senator Blanche Lincoln, introduced a bill last week to close the loophole by requiring that when TARP funds are repaid they are used to pay down the national debt.
http://www.OrrinHatch.com
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