Reps. Anna Eshoo, D–Palo Alto, and Jackie Speier, D-Hillsborough, met this week with San Mateo County officials and House Financial Services Chairman Barney Frank, D-Mass., to discuss the use of Troubled Asset Relief Program (TARP) funds to buy up troubled assets held by local governments.
“I’m grateful that Chairman Barney Frank committed to a public hearing on the issue of public funds lost due to the collapse of Lehman Brothers,” Eshoo said in a news reelase. “This is progress and I’m hopeful that San Mateo County and other public entities will be able to recover some of the dollars invested in conservative instruments. Our schools, public safety, and social services will suffer if we cannot return a portion of these dollars back to our local governments.”
Speier noted Lehman Brothers was the only large financial institution allowed to fail, and its failure cost state and local governments more than $2 billion. “I’m grateful that Chairman Frank has agreed to hold hearings on this important matter and I look forward to finding a solution that returns some of these taxpayer funds back to the public entities where they belong.”
San Mateo County officials in the meeting included Supervisor Rich Gordon, Supervisor Rose Jacobs Gibson and Deputy County Manager Mary McMillan. County officials also met with the White House Office of Intergovernmental Affairs, Senators Barbara Boxer and Dianne Feinstein, and House and Senate finance committee members.