Congressman seeks review of bailout rules

April 4, 2009 at 2:15 PM
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WASHINGTON, April 4 (UPI) -- A New York congressman says he'll review the Obama administration's decision to sidestep some restrictions imposed by Congress on bailout funds.

The administration's new initiatives would let firms benefiting from the programs avoid some rules, such as limits on executive pay, The Washington Post reported Saturday.

The administration's new stance warrants review and would need to be overturned if it violates congressional intent, said Rep. Edolphus Towns, D-N.Y., chairman of the House Oversight and Government Reform Committee.

"We have to make certain that if they are using government money in any sort of way, there should be restrictions," said Towns.

The new approach is vital for convincing firms to participate in programs funded by the $700 billion financial rescue package, said Treasury spokesman Andrew Williams.

While some legal experts question its legality, Williams said the strategy complies with the law and ensures taxpayer funds are used most effectively to bring about economic recovery.

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