Congresswoman Hirono Continues to Work
on Measures to Stabilize our Financial Markets
WASHINGTON, D.C.—Congresswoman Mazie K. Hirono (D-Hawai’i) today participated in a press conference with Congressman Peter DeFazio (D-Oregon) and other colleagues who have been working on proposals to address the current financial crisis.
Hirono said, “I have stayed here in D.C. with my colleagues to improve the Bush/Paulson plan and come up with solutions that will provide stability to the financial markets in a responsible and effective way.
“Two things are clear, (1) quick regulatory action can and should have been taken to address the current crisis and (2) the Bush/Paulson plan should have stronger taxpayer payback provisions and help for homeowners facing foreclosure.
“It has also become clear that the Executive Compensation pay provisions are too loosely worded and should be tightened to prevent these highly paid executives from circumventing congressional intent.
“When Congress reconvenes I will be an original cosponsor of Rep. Peter DeFazio’s bill to mandate quick regulatory action that experts, including Former Chair of the FDIC William Isaac, say could solve the financial institutions’ liquidity problems at little cost to the taxpayers.”
Provisions of the proposal include:
• Suspend “mark-to-market” accounting regulations that are causing the write-down of bank assets to fire-sale prices and thereby contracting the supply of available investment capital;
• Increase the Federal Deposit Insurance Corporation’s (FDIC) insurance amount;
• Reinstitute use of the “Net Worth Certificate Program” used in the 1980s to help banks with their short-term capital needs. This system operated at no cost to the taxpayer.
Hirono stated, “I have also asked leadership to consider including the ‘Net Worth Certificate Program,’ in the Bush/Paulson Plan as another way to help banks with their short-term capital needs with no taxpayer subsidy required.”
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