For Immediate Release
October 3, 2008 |
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FOR MORE INFORMATION:
Cullen Schwarz
Office: 202.225.4961
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House Passes Emergency Economic Stabilization Act |
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House Overwhelming Approves Extension of Unemployment Insurance |
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(Washington D.C.)- Responding to a week of nearly unprecedented turmoil in the financial markets, the House of Representatives passed legislation today to shore up the financial system and maintain access to credit markets for consumers and businesses. It was passed by a vote of 263-171.
“The problems in the credit markets threaten the entire economy. Since Monday, we have seen the largest one-day decline in the stock market in history and credit has contracted to the point that even credit-worthy companies are having difficulty accessing capital. Car and education loans are drying up. Inaction is not an option, if we do nothing, it won’t just mainly be Wall Street employees that lose their jobs, but more workers in Michigan and around the country,” said Rep. Levin. “Congress must move to crack down on the abuses and repeal the misguided, de-regulatory policies that caused this mess, but let’s not do further harm to Americans whose jobs and personal finances are at risk.”
The Emergency Economic Stabilization Act authorizes up to $700 billion, to be released in installments, for the Treasury Department to establish a program to buy or insure troubled mortgage-related assets and other instruments whose falling values have threatened our financial system.
The legislation is considerably different than the plan originally proposed by the Bush Administration. It includes strong independent oversight, transparency, and accountability requirements, limits on excessive compensation for CEOs and executives of participating financial institutions, and requirements that taxpayers will share in any recovery at participating firms.
To help keep more families in their homes, the bill substantially expands eligibility for mortgage refinancing under the Federal Housing Administration’s new Hope for Homeowners program. As the owner with a stake in hundreds of thousands of mortgages, the government would be able to work more directly with loan servicers to make problem loans more affordable, which could include reducing principal or interest rates, or lengthening the time to pay back the mortgage. The bill requires the Treasury, FHA, the Federal Reserve and other agencies to work together on opportunities to increase loan modifications for at-risk mortgages.
“We must do much more to strengthen our economy and support families during these difficult economic times,” said Rep. Levin. “The House voted overwhelmingly to approve an extension of unemployment benefits today. The Senate and the President must quickly get behind this extension for those unemployed workers and their families who continue to search unsuccessfully for work.”
Rep. Levin has repeatedly called for a seven week extension of unemployment benefits nationwide as well as an additional 13 weeks for high unemployment states such as Michigan. Figures were released today that the U.S. lost an additional 159,000 jobs in September, the highest one-month job loss in over five years. The long-term unemployment rose dramatically from 167,000 to two million and now account for 21.1% of all unemployed people. 774,000 people will exhaust the first emergency extension this month alone, 1.1 million before the end of the year, if the legislation is not signed into law.
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To Contact Congressman Levin: -
Email Congressman Levin In Michigan: 27085 Gratiot Ave, Roseville, MI 48066 | (586) 498-7122 | (248) 968-2025
In Washington: 1236 Longworth House Office Building, Washington, DC 20515 | (202) 225-4961
