Legislation would stabilize financial markets, ensures taxpayers are repaid

(September 29, 2008)

(Washington, D.C.)—Today, Congressman Tim Mahoney (FL-16) rejected President Bush’s bailout proposal and supported a bipartisan plan in Congress to stabilize the American financial markets and protect taxpayers.  Eleven days ago, President Bush asked Congress for a $700 billion handout for Wall Street that Congressman Mahoney rejected.  After considerable bipartisan cooperation, Congress completely overhauled the President’s initial proposal and created a better bill that eliminated excessive executive compensation and ensured that any taxpayer losses are repaid by the industry.

Despite bipartisan support, the Emergency Economic Stabilization Act (HR 3997) failed to pass in the House of Representatives by a vote of 205-228. 

“Today, Congress failed to pass an important piece of legislation to protect Main Street from the troubles on Wall Street. I supported the bipartisan Emergency Economic Stabilization Act because it turned the Bush handout plan into a responsible one that holds Wall Street accountable, while protecting taxpayers. While this plan was not perfect, I believed that inaction was not an option,”said Congressman Tim Mahoney. “Our work is not done. The Senate will now take up the bill and the House will continue to hammer out a compromise that renews confidence in our financial markets and protects Americans’ investment in their homes, savings and businesses.”

Financial experts across the board agree that if our financial institutions fail there would be a nationwide freeze on credit and lending and potentially catastrophic consequences for personal retirement and education savings.  Local banks would no longer be able to provide home, car, or student loans to people with good credit or to small businesses. Personal retirement accounts, such as pensions, 401(k)s, mutual funds, and education savings accounts, would also be vulnerable.