Barney Frank to Spend TARP Profits?

Amanda Carey | July 2, 2009

The Washington Examiner's Byron York reported yesterday that Rep. Barney Frank (D-Mass.) has plans for the cash coming in as banks repay TARP money:

Last Friday, Frank introduced the "TARP for Main Street Act of 2009," a bill that would take profits from the program and immediately redirect them toward housing proposals favored by Frank and some fellow Democrats.

In other words, Frank wants to take any profit the government would have made off of TARP and immediately spend it on low income housing and mortgage subsidies. Never mind that TARP legislation says that any money the government receives from institutions paying off their bailouts "shall be paid into the general fund of the Treasury for reduction of the public debt."

While most institutions are still struggling to stay afloat, much less pay back TARP funds, it still remains to be seen if the stimulus program will ultimately end up paying for itself. In the meantime however, it seems as if Frank is doing his darndest to prevent what could be a positive outcome. Oh yeah, and did I mention that the U.S. debt is currently over $11.5 trillion?           
Reason's Nick Gillespie on the failures of Barney Frank here.