Black lawmakers sink bailout bill
By Staff
Sept. 29, 2008, 10:40
p.m. -
Many black
lawmakers today released a deluge of negative statements explaining
their votes on a $700 billion bailout bill for
troubled financial companies.
The statements came as
21 of the 42-members of the Black Congressional Caucus votes were key
to defeating the measure in the House by a margin of 228-205.
Rep. Barbara Lee, who
voted against the plan, said that she is "convinced
that this bailout plan is not the solution to this mess."
"First,
it does little to address the underlying problem – the foreclosure
crisis," the
California Democrat
said. "We need a moratorium on foreclosures and bankruptcy reform
to help people stay in their homes.
"Second,
this bill should be paid for by the high-flying industry that created
this problem.$700 billion should not be given to Wall Street and the
Bush Administration unless those who cause this mess pay for it.
We
should also prohibit the tax deductibility -and my bill the Income
Equity Act (HR 3876) would do this across the board - of executive
compensation in any company where the highest paid corporate officer is
paid more than 25 the times the pay of a bailed-out company's
lowest-paid worker.
"And
third, we need an economic stimulus package to deal with the crushing
reality of the recession that is hitting people hard and growing every
day.
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"I
cannot vote to reward those predatory and subprime lenders who are creating such
havoc in the lives of millions of Americans.
"There
is a better way."
Cummings
said that President Bush must do more
Rep. Elijah
E. Cummings, a member of the Joint Economic Committee, also voted down the bill.
"I
do not believe that we have explored or exhausted all possible options to
directly ease the pressure on financial markets without causing an undue burden
to taxpayers," the Maryland Democrat said. "This legislation just does
not provide enough relief and protection for the hardworking men and women who
are trying to make ends meet.
"In
addition to the acquisition of some of the financial system's sound assets, any
federal initiative should include federal capability to restructure mortgages
for the men and women who are trying so desperately to keep their homes and
salvage their families' dreams. It must also include a substantial allocation
toward initiatives that are proven to directly stimulate our economy—such as
extended unemployment and food stamp benefits.
"I
am deeply concerned that there is no requirement that Wall Street take
responsibility for the mess it helped to create. There is no meaningful
limitation on golden parachutes for executives—who are still making millions
of dollars a month even as average Americans continue to struggle to stay
afloat. I am concerned that the board created to oversee this bailout is not
offered the power to stop any irresponsible or questionable action. I am
concerned that there are no safeguards against taxpayers being overcharged to
buy these assets—or any guarantees that they will profit from these
investments in the future.
"While
the federal government must act to keep our economy out of jeopardy, I am
concerned that this proposal is lacking key provisions to protect taxpayers. Any
measure we adopt must include strict oversight and safeguards against giving
blank checks to corporate executives whose poor judgment has led us down this
road, and that provides substantial relief to the millions of Americans who
continue to suffer under the overbearing burden of our current economic
state."
Rep.
Scott said paying Wall Street is not the answer
Georgia
Rep. David Scott said "bailing
out Wall Street with $700 billion … of taxpayer money without a dime to help
struggling homeowners is wrong."
"This
is not just a Wall Street problem, this is a problem at the kitchen table of
every family in America and this bill simply does not do enough to assist
homeowners and keep their families in their homes," Scott said, who also
voted against the bill.
Rep.
Jackson said he voted "No"
"This bill is simply a band aid not a cure for the
financial crisis, and it does little for the hard-working Americans who will
pay for it," said Jesse Jackson, an Illinois Democrat.
"It does not go far enough in addressing the systemic
and terminal problems of our financial system. It further privatizes profits
and socializes the losses. This crisis started because of the home mortgage
market, yet this legislation merely suggests that the Treasury Secretary
implement a plan to mitigate foreclosures and to encourage services of
mortgages to modify loans. There is no explicit directive to actively
restructure mortgages. Furthermore, the bill does not allow bankruptcy
judges to restructure troubled mortgages.
"To heal the systemic problems in our financial
system we need to treat the cause, not only the symptoms. Congress needs to
pass and the president needs to sign into law the following provisions: 1) a
second stimulus to help those squeezed by the financial crisis; 2) a
substantial investment in infrastructure which could jump start the economy
while creating jobs, and; 3) a program that helps keep taxpayers in their
homes. This bill does not contain provisions that explicitly help borrowers
restructure their mortgages. Buying 'trash (bad mortgages) for cash ($700
billion bailout)' may not cure our financial system, since it was these bad
mortgages that engineered this market collapse."
Rep. Clarke voted for the bill
“This bailout is
the brainchild of the Bush Administration, which once again is gambling with
people’s lives," Rep. Yvette D. Clarke, a New York Democrat.
"Although we don’t know whether this rescue plan will work, I do know
that doing nothing is far worse.
"
Sen.
Obama supported the bill
In
the Senate, Barack Obama, who is the Democratic nominee for president, had also
called the bill an "outrage" but said he would have voted for it.
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