“Mr. Secretary, funds made available under the economic rescue package should not be used to pay for bank acquisitions, raises, and executive bonuses,” Boehner wrote in his letter. “These are not the types of expenditures you described during your many discussions on Capitol Hill earlier this fall, and these certainly are not the types of expenditures Members of Congress envisioned when the plan was sent to the president earlier this month.”
Earlier in the day, Nancy Pelosi and Harry Reid sent their own letter to Paulson demanding tougher restrictions on golden parachutes for CEOs.
Boehner was particularly upset by an Associated Press report alleging that PNC Financial Services Group Inc. is acquiring National City Corp., potentially using funds received from the Treasury Department under the Troubled Assets Relief Program.
“I must first ask if the Associated Press reports cited above – and countless others like them – are accurate,” Boehner wrote. “If so, what does the Treasury Department intend to do to ensure these types of expenditures do not occur under TARP?”
The full text of Boehner’s letter after the jump.
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