(i still totally don't know how to link to a journal)
November 26, 2008
Ms. IMK2 (changed so that people can't google my name and find my blog
Dear Ms. IMK2,
Thank you for contacting me with your concerns about a rescue of the financial services industry. I appreciate hearing from you on this important issue.
Like you, I am deeply concerned about years of mismanagement in government, which has led to deregulation of the financial services industry, a lack of oversight, and a complete loss of transparency, putting us into the current situation.
I am concerned about what could result if we do not take action to address this industry's failure. After the House failed to pass a similar bill on Monday, October 6, we all watched the stock market tumble nearly 800 points. That market holds onto the retirement savings of people who have worked hard for many years, and it contains the college savings of a family struggling to ensure their children a college education. We cannot afford more market failures, and the failure of financial institutions helps no one. Simply put, the savings of every family is at risk. Without help, Main Street will feel as much pain as Wall Street. With nearly all of the country's major financial institutions declaring bankruptcy or on the verge of declaring bankruptcy, we no longer have a choice on whether to offer a rescue package; the alternative, as we already saw, is a disaster. This Democratic-led Congress is taking steps to ensure that we are honoring our promise to keep your future safe, regardless of the financial services industry and its fluctuations.
I want to take this opportunity to reassure you that the rescue package I supported contains specific provisions to ensure that it benefits consumers and homeowners more than it does the people who caused this crisis. Please know that our bill will:
- Ensure that this rescue package is not a blank check.
- Expand oversight of the nonpartisan Government Accountability Office to ensure that any money spent is done so responsibly.
- Ensure that the government receives shares of companies it aids so that taxpayers will benefit once the industry recovers.
- Stand up for homeowners by taking action to prevent foreclosures.
- Get rid of golden parachutes for CEOs and trim executive pay.
- Require that if after five years taxpayers have not recouped every cent, the Federal Government will put forth a plan to recover the funds from financial institutions.
You may also be certain that the $700 billion proposed is a cap on what may be provided, but the full amount will not be provided from the start. Instead, $250 billion will be released immediately, with more money available subject to Congressional veto and only with proof of need. I am committed to using as little taxpayer money as is absolutely necessary to do this properly.
We also fought to include provisions to help Americans hold onto their homes during this difficult time. Specifically, the bill allows the Secretary of the Treasury to back mortgages so that lenders are able to restructure loans for homeowners, making it easier for families to repay their loans. The bill requires the government to work with loan providers to modify loans and stem foreclosures. It extends tax cancellation on any debt that is forgiven by a lender. This was previously counted as income by the IRS, and by not counting it, we will ensure that homeowners will no longer be subjected to taxes on money they never had to begin with.
I would also like to address charges that this bill includes "pork." The tax provisions which were included in the latest version of the this bill are simply extensions of current tax and trade policies. These are not earmarks, and money is not being appropriated. One of these provisions, which I proudly championed, extends an existing duty reduction that is vital to the continued competitiveness and survival of domestic suit-makers and textile manufacturers. These important American companies, including Hickey Freeman here in Rochester, are put at a competitive disadvantage by Canadian and Mexican manufacturers, largely because of an unintended consequence of NAFTA. This duty reduction levels the playing field for American companies such as Hickey Freeman, so that they can continue to make their products, and keep 600 jobs in Western New York rather than ship them overseas. Combined, these provisions have been non-controversial and promote the health of the wool, textile, and clothing manufacturing in the United States. At a time when American businesses may struggle to find credit, and Americans may struggle to find work, it would be imprudent to allow a provision such as this, which promotes American business and helps keep American jobs in America, to expire.
Our swift action will ensure a more sound economic future for all Americans. Please know that I supported this rescue package, which will be enacted into law shortly, because it includes these and other safeguards for our families and our economy. We saw what happens when an Administration deregulates industry to a point where insecure companies are expected to police themselves. This Democratic-led Congress is doing everything possible to ensure America keeps working, and that government is working for America.
Sincerely,
Louise Slaughter
Member of Congress
- She totally missed the point. I didn't want to hear her plans on recovering the economy. I just wanted a bailout for myself. WTF?
Probably a canned response sent by an auto-robot that detects the word "bailout" + "concerned".