Mike Thompson United States Congressman - First District of California
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Rep. Thompson's Statement on Financial Bailout

September 25, 2008

WASHINGTON--- Mike Thompson (D-CA) released the following statement:

This proposal is clearly one of the most critical issues to come before Congress during the ten years I’ve had the honor to serve our district. Since this proposal was announced last Sunday, nearly all of my time has been spent working to figure out this crisis and the possible solutions.

On one hand, none of us want to see our financial markets collapse. We’re told the current financial crisis will dramatically impact not only the “fat cats” but also everyday, hard-working Americans. Retirement funds, 401ks, annuities and public sector retirements could be greatly reduced. Real estate equity would fall even further, hurting not only those whose homes are in foreclosure, but everyone in our communities. Many loans for cars, homes, small and large businesses and even college would dry up, further choking local economies.

On the other hand, many of these problems stem from greedy people who acted without concern for the livelihood of everyday Americans. Financial practices were developed and deployed that have exacerbated this mess, and the Administration failed to enact proper oversight over these complicated financial instruments.

The pressure to act quickly on this matter would not necessarily bring us the best policy solution. President Bush, Vice President Cheney, Secretary of the Treasury Paulson, Securities and Exchange Commission (SEC) Chairman Cox, and Fed Chairman Ben Bernanke showed up at 6pm on Thursday night to tell Congress we have until Monday to give them $700 billion or the sky is going to fall.

Monday has come and gone and the sky is still in place, but I agree on the essential principle that we need to take action. However, I am not willing to rush into action nor am I interested in saddling American taxpayers with this incredible debt.

In the coming days I will continue to work to see if we can find a solution that is best for our economy and the taxpayer. That solution must come with strong reforms, oversight and accountability that ensure this doesn’t happen again. These reforms must be tough and well thought out.

As I continue to work on this, I am asking the Congressional leadership to take the time to do this right- that’s more important than doing it fast.