[Washington,
DC] Today Congressman
Dan Lipinski released the following statement regarding his “no” vote for H.R.
3997, the Emergency Economic Stabilization Act of 2008:
“The people of the Third District are hardworking Americans
who pay their bills, pay their taxes, and try to do the right thing. But in
these tough economic times they are working more and finding it increasingly
difficult to make ends meet because of high gas prices, skyrocketing health
care costs, and stagnating wages.
“And now American financial markets are in turmoil.
Multimillionaire executives on Wall Street created a system of risky financial
instruments and made millions of dollars. Now that some financial
institutions are failing, American taxpayers are being called upon to pay for
these terrible decisions and irresponsible behavior.
“I feel there is a need to help stabilize the financial
markets so we can keep the problems from spreading to the rest of the economy
and further threatening American families. But when the Bush
Administration announced its plan last week to give a $700 billion blank check
to Wall Street I knew it was not the right thing to do. That proposal had
no accountability, no oversight, no regulatory reform, and put far too many
taxpayer dollars at risk. And it did not hold those who created the
crisis responsible for their actions.
“That is why I cosigned a letter to Speaker Pelosi calling
for specific changes to improve the Bush proposal – changes that I believed
would bring more accountability and oversight and implement real reform.
These would include provisions that limit executive compensation and golden
parachutes, prohibit funds from bailing out foreign banks, require strong
independent supervision and oversight, and significantly lower the $700 billion
risk to taxpayers.
“A $700 billion bailout would drive our national debt over
$10 trillion. I do not believe our children and grandchildren should be
burdened with an additional $700 billion in debt. I stated that any
legislation should include provisions that will ensure that any proceeds and
profits will be used to first repay American taxpayers. If the American
taxpayer is bailing out these companies, the American taxpayer should be given
a real stake in these companies so that they can share in future profits.
“Over 400 prominent economists from some of the leading
universities in the U.S.
– including Nobel Prize winners – have expressed great concern about moving too
quickly and passing a potentially faulty plan. They also pointed out that
investors who took the risk to earn profits should be on the hook to bear the
losses. Dr. Alan Blinder, an Economics Professor at Princeton University
who is also the former Vice-Chairman of the Board of Governors of the Federal
Reserve, has said he disagreed that a bailout package needed to be done this
week and pointed out the importance of doing it right.
“After having read this 110 page bill, I do not
believe it is right. While it does include significant
improvements – improvements that I requested – I still have concerns with the
hastiness of the process and the substance of the bill. I am concerned
with the potential loopholes – loopholes for excessive CEO pay, loopholes that
will allow payments to foreign banks, loopholes to avoid strong independent
oversight, loopholes to prevent real reform of the financial industry, and
loopholes that would result in American taxpayers not getting repaid. The
Secretary of the Treasury is simply given too much power and can set aside the
accountability provisions in this bill. These are important issues that I
feel have not been adequately addressed in this legislation.
“We should not have rushed to action. We should look
at the root of the problem and try to solve it. We should carefully
consider the ramifications of this proposal. We should act prudently and
responsibly. We should do it right, so we don’t leave American taxpayers
on the hook for $700 billion worth of bad debt and so we don’t let this happen
again. And let’s make sure those who are liable for the mess are held
responsible for creating it.
“While the bill we voted on today is much improved from the
one we got from President Bush and Secretary Paulson, I simply believe we need
a better bill. That is why I could not vote to support a bill on such an
important and significant issue when I know we could and can do better.
“We should have done it right the first time. The
American people deserve no less.
“Now that this bill has failed to pass the House, we have a
new opportunity to work on a new bill. Let us move prudently and
rationally and work on a new and different bill that will do the right thing by
the American people.”
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