Yooper Jo
09-30-2008, 04:15 PM
Haven't posted here in a long time, just check in once in awhile. Thought I'd post another reply. My congressman voted no.
Dear,
Thank you for contacting me regarding the bailout of Wall Street.
In mid-September, Treasury Secretary Henry Paulson insisted the
government would not bail out American International Group (AIG),
which was heavily invested in the subprime mortgage market. Thirty six
hours later, the Secretary changed his mind and the Federal Reserve
provided an $85 billion line of credit to save AIG in the largest
government bailout of a private corporation in U.S. history.
It is alleged that Secretary Paulson changed his mind because his former
employer, Goldman Sachs, was AIG's largest trading partner and its
collapse threatened to leave Goldman Sachs with a $20 billion loss.
Just days earlier, the failure of global financial services firm Lehman
Brothers became the largest bankruptcy in U.S. history, sending global
markets into turmoil. The Secretary refused to assist Lehman Brothers,
Bear Stearns and other distressed financial firms.
By the end of that same week, the Treasury Secretary came to Congress
with a two-and-a-half page, $700 billion bailout proposal for Wall Street,
insisting that the White House proposal must be implemented
immediately to avoid a severe financial crisis.
It was against this backdrop, that Secretary Paulson and Federal Reserve
Chairman Ben Bernanke insisted Congress grant the administration
unprecedented authority and power, essentially asking elected officials to
handover the keys to the U.S. Treasury allowing political appointees, like
Secretary Paulson, to determine which Wall Street financial institutions
would receive hand outs. As greed ran amuck, there was now panic on
Wall Street.
It came as quite a shock that Paulson, Bernanke and President Bush - the
same men who have for the past year continued to insist our economy is
sound and that it would survive the subprime mortgage crisis - were now
asking Congress for government intervention unprecedented since the
Great Depression. Like many of my colleagues, I did not trust their
gloom and doom forecast and wanted time to review the proposal before
adding $700 billion to our national debt.
For 10 days, Democrats and Republicans worked with the Bush
Administration to craft H.R. 3997, the Emergency Economic
Stabilization Act of 2008. I compliment members of both parties
involved in these negotiations for their hard work and willingness to
compromise to produce a much improved proposal.
I have heard from thousands of my constituents across northern
Michigan and have reviewed their messages, emails and letters. My staff
and I have reached out to banks, credit unions, small businesses,
economists and many constituents across northern Michigan. Most
people sensed the urgency of addressing the financial crisis but had many
more questions than answers.
While the debates raged over what Congress should do, a consensus on
four main principles emerged: there must be transparency on the
purchase of troubled assets by the secretary; no windfalls or golden
parachutes should be provided for executives; Congress must provide
strong oversight; and the taxpayers must be protected. H.R. 3997 falls
short in all of these areas.
The bottom line is Wall Street executives enjoyed lavish lifestyles and
exorbitant salaries while making risky real estate and mortgage
investments. Many of these financial transactions were unregulated and
no one exercised oversight of these markets or these individuals. Now
the American taxpayer is being asked to bail out Wall Street for such
things as NINJA mortgages. NINJA mortgages are those granted to
individuals with no income, no job and no assets.
You don't have to look very hard to find the excesses Wall Street
executives continue to enjoy. On September 25, Washington Mutual
became the largest bank to fail in U.S. history. Its CEO has been on the
job less than three weeks and stands to walk away with $18 million,
including a $7 million "signing bonus" just for taking the job. Last year,
the CEO of Merrill Lynch walked away with $161 million. The CEO of
AIG was offered a $22 million severance package on the heels of the
government bailout, but declined to accept it after considerable public
pressure. Treasury Secretary Paulson, himself a former chairman and
CEO of Goldman Sachs, received a $38 million compensation package
in his final year with the company and had a personal net worth of more
than $500 million when he became Treasury Secretary!
Although $700 billion is the number being attached to this bailout, even
the Treasury Secretary acknowledges the number is arbitrary and was
chosen to show the financial markets the U.S. government was serious.
No one can tell us the total cost of the bailout, what the taxpayers are
being asked to purchase or even if the infusion of $700 billion will solve
this financial crisis.
My review of H.R. 3997 shows that the limitations on Wall Street
executive pay and golden parachutes only apply if a financial entity
receives $300 million in government help; this $700 billion bailout raises
the national debt to $11.3 trillion; taxpayers will have no way to recoup
the interest on the $700 billion bailout; taxpayers will have to pay for the
administration of this bailout; and finally, no one can tell us where or
how the United States will come up with $700 billion.
I am concerned $700 billion is just the beginning and additional billions
of dollars will almost certainly be necessary. The bailout is likely to go
on for more than five years and over that time I fully expect corruption
and criminal activity will be found on Wall Street and, sadly, no one will
probably be held accountable to the American taxpayer.
I cannot ask American families - who work hard, play by the rules and
struggle to meet their own financial obligations - to bail out Wall Street
executives for their reckless, lavish lifestyles.
For that reason, I voted "no" on H.R. 3997, the Economic Stabilization
Act of 2008. This bailout does not represent our northern Michigan
values and it rewards excessive financial shenanigans without any
accountability for these irresponsible actions.
The $700 billion bailout failed in the U.S. House of Representatives by a
vote of 205-228 on September 29. I expect to be called back to
Washington in the coming days to consider an alternative package. I will
examine that alternative proposal closely to see that it addresses the
concerns I have raised. Congress will do what is necessary to stabilize
our economy and restore confidence in the financial markets, but will
ensure that protecting the taxpayers is priority number one.
Sincerely,
BART STUPAK
Member of Congress
Dear,
Thank you for contacting me regarding the bailout of Wall Street.
In mid-September, Treasury Secretary Henry Paulson insisted the
government would not bail out American International Group (AIG),
which was heavily invested in the subprime mortgage market. Thirty six
hours later, the Secretary changed his mind and the Federal Reserve
provided an $85 billion line of credit to save AIG in the largest
government bailout of a private corporation in U.S. history.
It is alleged that Secretary Paulson changed his mind because his former
employer, Goldman Sachs, was AIG's largest trading partner and its
collapse threatened to leave Goldman Sachs with a $20 billion loss.
Just days earlier, the failure of global financial services firm Lehman
Brothers became the largest bankruptcy in U.S. history, sending global
markets into turmoil. The Secretary refused to assist Lehman Brothers,
Bear Stearns and other distressed financial firms.
By the end of that same week, the Treasury Secretary came to Congress
with a two-and-a-half page, $700 billion bailout proposal for Wall Street,
insisting that the White House proposal must be implemented
immediately to avoid a severe financial crisis.
It was against this backdrop, that Secretary Paulson and Federal Reserve
Chairman Ben Bernanke insisted Congress grant the administration
unprecedented authority and power, essentially asking elected officials to
handover the keys to the U.S. Treasury allowing political appointees, like
Secretary Paulson, to determine which Wall Street financial institutions
would receive hand outs. As greed ran amuck, there was now panic on
Wall Street.
It came as quite a shock that Paulson, Bernanke and President Bush - the
same men who have for the past year continued to insist our economy is
sound and that it would survive the subprime mortgage crisis - were now
asking Congress for government intervention unprecedented since the
Great Depression. Like many of my colleagues, I did not trust their
gloom and doom forecast and wanted time to review the proposal before
adding $700 billion to our national debt.
For 10 days, Democrats and Republicans worked with the Bush
Administration to craft H.R. 3997, the Emergency Economic
Stabilization Act of 2008. I compliment members of both parties
involved in these negotiations for their hard work and willingness to
compromise to produce a much improved proposal.
I have heard from thousands of my constituents across northern
Michigan and have reviewed their messages, emails and letters. My staff
and I have reached out to banks, credit unions, small businesses,
economists and many constituents across northern Michigan. Most
people sensed the urgency of addressing the financial crisis but had many
more questions than answers.
While the debates raged over what Congress should do, a consensus on
four main principles emerged: there must be transparency on the
purchase of troubled assets by the secretary; no windfalls or golden
parachutes should be provided for executives; Congress must provide
strong oversight; and the taxpayers must be protected. H.R. 3997 falls
short in all of these areas.
The bottom line is Wall Street executives enjoyed lavish lifestyles and
exorbitant salaries while making risky real estate and mortgage
investments. Many of these financial transactions were unregulated and
no one exercised oversight of these markets or these individuals. Now
the American taxpayer is being asked to bail out Wall Street for such
things as NINJA mortgages. NINJA mortgages are those granted to
individuals with no income, no job and no assets.
You don't have to look very hard to find the excesses Wall Street
executives continue to enjoy. On September 25, Washington Mutual
became the largest bank to fail in U.S. history. Its CEO has been on the
job less than three weeks and stands to walk away with $18 million,
including a $7 million "signing bonus" just for taking the job. Last year,
the CEO of Merrill Lynch walked away with $161 million. The CEO of
AIG was offered a $22 million severance package on the heels of the
government bailout, but declined to accept it after considerable public
pressure. Treasury Secretary Paulson, himself a former chairman and
CEO of Goldman Sachs, received a $38 million compensation package
in his final year with the company and had a personal net worth of more
than $500 million when he became Treasury Secretary!
Although $700 billion is the number being attached to this bailout, even
the Treasury Secretary acknowledges the number is arbitrary and was
chosen to show the financial markets the U.S. government was serious.
No one can tell us the total cost of the bailout, what the taxpayers are
being asked to purchase or even if the infusion of $700 billion will solve
this financial crisis.
My review of H.R. 3997 shows that the limitations on Wall Street
executive pay and golden parachutes only apply if a financial entity
receives $300 million in government help; this $700 billion bailout raises
the national debt to $11.3 trillion; taxpayers will have no way to recoup
the interest on the $700 billion bailout; taxpayers will have to pay for the
administration of this bailout; and finally, no one can tell us where or
how the United States will come up with $700 billion.
I am concerned $700 billion is just the beginning and additional billions
of dollars will almost certainly be necessary. The bailout is likely to go
on for more than five years and over that time I fully expect corruption
and criminal activity will be found on Wall Street and, sadly, no one will
probably be held accountable to the American taxpayer.
I cannot ask American families - who work hard, play by the rules and
struggle to meet their own financial obligations - to bail out Wall Street
executives for their reckless, lavish lifestyles.
For that reason, I voted "no" on H.R. 3997, the Economic Stabilization
Act of 2008. This bailout does not represent our northern Michigan
values and it rewards excessive financial shenanigans without any
accountability for these irresponsible actions.
The $700 billion bailout failed in the U.S. House of Representatives by a
vote of 205-228 on September 29. I expect to be called back to
Washington in the coming days to consider an alternative package. I will
examine that alternative proposal closely to see that it addresses the
concerns I have raised. Congress will do what is necessary to stabilize
our economy and restore confidence in the financial markets, but will
ensure that protecting the taxpayers is priority number one.
Sincerely,
BART STUPAK
Member of Congress