Washington, DC  – Today, Congressman John D. Dingell (D-MI15) spoke out in favor of S. 386, the Fraud Enforcement and Recovery Act of 2009.  The bill, which passed the House 367-59, will protect taxpayers by giving the Justice Department more tools to fight fraud in the use of the Troubled Asset Relief Program (TARP) and recovery funds.  This measure also establishes a Financial Markets Inquiry Commission, proposed by Democratic Caucus Chair John Larson (D-CT01) and by Senator Johnny Isakson (R-GA), to examine the causes and factors leading up to the worst financial crisis since the Great Depression.  Below are Congressman Dingell’s remarks on the bill as prepared for delivery on the House floor:

“Madam Speaker: I rise today in support of S. 386, the Fraud Enforcement and Recovery Act.  This legislation provides the Department of Justice with the tools it needs to fight fraud in the use of funds under TARP and the American Recovery and Reinvestment Act.  S.386 has a number of provisions that seek to protect Americans by ensuring the agencies tasked with investigating and prosecuting mortgage and financial fraud have the funding and personnel they need to do so.  I am also pleased the House recognizes the need for increased accountability for mortgage lending businesses not directly regulated or insured by the federal government, an industry responsible for nearly half the residential mortgage market before the housing crash. 

“I am more hesitant to other support other provisions of S. 386.  This bill includes an amendment to establish a special commission to investigate the causes of the current financial crisis.  I believe that any such commission should be comprised of members of this body, who are furthermore from the committees of jurisdiction relevant to the matter.  I have introduced a resolution, H. Res. 345, to do precisely that.  It is my long-held belief that the Congress should, contrary to the prevailing fashion of the times, conduct its own oversight work.  For the simple fact that members of this body will ultimately write the legislation to re-impose a strict regulatory framework upon the financial services industry, they should be personally involved in vigorous efforts to expose the many and sundry causes of this country’s recent economic collapse.  In brief, well-informed members of Congress write more effective legislation.

“With this in mind, I voice my support for aggressive oversight of the financial services industry, but respectfully object to the manner in which S. 386, as amended, mandates it be performed.”