Washington, DC—Rep. Watson issued the following statement regarding her vote today on the passage of the amended version of the Emergency Economic Stabilization Act of 2008:

"Hard choices have to be made, and today I cast one of the most difficult votes of my Congressional career.  My initial reaction to the $700 billion request from the Administration to stabilize the credit markets was suspended disbelief.   How could we have gotten ourselves in this situation and how could the Secretary of Treasury, with no warning, ask the American people to foot this outsized bill?    The majority of my constituents as well as I viewed the $700 billion stabilization package as a massive bailout for Wall Street at the expense of Main Street.  

"In the past week, the credit crisis has continued to worsen, all but paralyzing many state and local governments.  Over the past days, I have been in contact with the Governor of California’s office, the State’s two Senators, and the State Treasurer’s Office about the impact of the credit crunch on California’s state budget.   The warnings I heard were dire.  I was told in no uncertain terms that the operating funds to pay state workers, teachers,  and healthcare workers would dry up by the end of October if California could not borrow money, almost $7 billion, to pay its bills. 

"The Wall Street credit crunch has finally impacted Main Street, including its schools, teachers, hospitals, small businesses, and public agencies.  I cannot in good conscience stand by and watch the credit markets contract further.  Rather than let the State of California fall to its knees and potentially collapse through inaction, I chose today to vote for legislation, although imperfect, that can potentially restore faith in the markets.

"I as many of my colleagues who voted for the legislation remain concerned about the provision of further assistance to those whose homes have been foreclosed and have lost their jobs.  I applaud the House vote today to extend unemployment benefits.  But much more should be done to help the hundreds of thousands of workers in the U.S. who have lost their jobs during this economic downturn, including a reexamination of our bankruptcy laws to provide more relief to homeowners in distress.  

"I also share my colleagues’ concerns about the massive failures of the markets as well as government sponsored enterprises Fannie Mae and Freddie Mac. My colleagues and I have vowed to work hard to get to the bottom of this mess.  I am therefore pleased that Speaker Pelosi has tasked Henry Waxman, Chairman of the Committee on Oversight and Government Reform, to convene a series of hearings, beginning next Monday. 

"I plan to return to Washington, D.C. next week to participate in hearings on the causes and effects of the Lehman Brothers Bankruptcy and the AIG Bailout. I will also leave Los Angeles to participate in three other hearings on the financial crisis dealing with the regulation of hedge funds, the breakdown of credit rating agencies and the role of federal regulators, all before the end of October.

"Congress must ensure that this massive failure never happens again.   It is my hope that the 111th Congress and the new Administration will be vigilant in their oversight to ensure that competency, transparency, and honesty are values entrenched in both the public and private sector. If these values prevail, we can keep our nation strong."