Congressman Mike Conaway - 11th District of Texas

Washington, Oct 3 - Today, Congressman Mike Conaway (R-TX-11) made the following statement on the passage of the Emergency Economic Stabilization Act of 2008:

“Today’s vote was the hardest I have taken in my nearly four years of being a Member of Congress. For the past week, I have listened to the concerns of thousands of West Texans, the large majority coming out opposed to the legislation, and with good reason. I voted against the bill on Monday because there were several key pieces missing in the grand puzzle that is this financial rescue package. I do not believe that such massive government action is the best answer to the current problems on Wall Street. However, I know that we must act quickly to restore investor and lender confidence and return our great nation to the most thriving economy in the world.

“There are two key amendments added by the Senate to the today’s bill that improved the rescue plan. One amendment increases the FDIC insurance limits, which will help calm bank depositors’ anxiety about the safety of their bank accounts. The other amendments are unrelated to the overall plan, but are positive issues such as a one-year patch to the Alternative Minimum Tax, sales tax deductions, and disaster relief for Texas hurricane victims. While these tax amendments made the overall bill easier to vote for, they were not my final determining factors.

“After the vote on Monday, the stock market reacted very negatively to the defeat. Confidence in the short term lending facilities, particularly commercial paper markets and overnight lending between banks, had to be addressed. The rescue plan’s focus on the mortgage backed securities problems is an attempt to restore confidence in short and medium-term lending, which is the lifeblood of our economy. While we cannot be positive that this plan will work to restore that confidence, I am positive that inaction is not an option.

“Above all else, I voted for this plan because I believe the threats to our economy are real and grave. This financial crisis will negatively affect everyone in this country if no action is taken, and it is my steadfast hope that this legislation will calm the fear and uncertainty that have gripped our lending markets and enable us to implement deeper structural reforms that prevent a crisis of this magnitude from ever reoccurring.”