Good morning and welcome to our witnesses.

The recently released report by the House Banking Subcommittee on General Oversight and Investigations casts a shadow on the action that we are contemplating today- namely, the reauthorization of the Community Development Financial Institutions Fund. I find it interesting that we are even considering the reauthorization of a program that, to date, has been riddled with allegations of financial mismanagement, cronyism, and a lack of focus.

The Bachus report raises serious concerns that simply cannot be addressed in one or two hearings. The Committee should ensure that these issues are given a thorough airing. I realize that we have a compressed legislative schedule this year but I feel very strongly that we would be doing our constituents a disservice if we were to reauthorize this program without the sufficient assurances that the funds are being spent appropriately and that the program can achieve measurable results.

Since the CDFI program was moved under the Treasury Department there have been some marginal improvements in the administration of the funding; however, there are also glaring examples of mismanagement. While the Director and Deputy Director of the Fund have resigned, I am concerned that the same team of Treasury officials that oversaw the program will still be in place if the program is reauthorized. This concerns me greatly and I wonder what assurance we have that true change will take place.

I will withhold judgment and allow the allegations in the Bachus report to be answered before I make my decision on whether to support reauthorization. However, I remain skeptical that there will be enough time for the Committee to answer all the questions raised in the Bachus report. Since the Administration is requesting a $45 million increase over last year's funding, the Committee must ensure that the program is restructured in a way that protects taxpayer dollars.

I hope the witnesses can provide the Committee with the answers we need to protect the public trust.

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