October 3, 2008

            Hall, after speaking with the President on more than one occasion, had suggested to the President and his Deputy Policy Director that new taxpayer funding was not necessary in that the Federal Deposit Insurance Corporation (FDIC) would be a better and more transparent source – and a better way of dealing with Wall Street and with national banks, both large and small.

 “I learned that the President and Secretary Paulson had indeed given their blessing to use the FDIC to assist the Wachovia/Citibank deal, with Citibank assuming up to 42 billion in losses and the FDIC covering the remainder using the systemic risk exception,” Hall said.  “This action, which required the approval of the President and the Treasury Secretary, along with two-thirds of the Federal Board, was granted a few days ago, and it is generally believed that the Treasury Department will consider using this in similar situations in the future.  This is an option that several of us offered in lieu of the decision made today.”

“I learned this morning that Citibank’s acquisition of Wachovia utilizing the FDIC risk exception had been nixed in favor of a 15 billion dollar buyout by Wells Fargo. This was good news as we started to negotiate the vote that occurred today, because it showed that the marketplace itself is providing viable alternatives for some transactions,” Hall noted.

“The Senate’s passage of this measure on Wednesday precluded extensive negotiations on the House side for alternative approaches,” Hall added.  “Had the Senate measure failed, I believe we would have had a good chance to incorporate this and other taxpayer protections into an alternative bill.”

 “My vote is supported by the thousands of constituents who asked me to cast two tough ‘no’ votes to the Paulson plan,” Hall said.  “I regret being unable to support our President and much of the House leadership, both Democrats and Republicans, but I am proud to stand up for what I considered the best decision for our country.”

“I will press for oversight and accountability to ensure that this funding is spent wisely and is recouped to the greatest extent possible to reduce the impact on the Treasury and the taxpayer,” Hall stressed.  “I’m proud to have stood up for my district.”