October 3, 2008
Editor's note: The first news release regarding the House vote to approve the bailout came early Friday afternoon from Democratic Congressman Ciro Rodriguez, who represents a part of Far East El Paso. The second came early Friday evening from Democratic Congressman Silvestre Reyes, who represents El Paso.
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Rodriguez Statement on Vote Against $700 Billion Wall Street Bailout Today
Wants to Help Taxpayers, Not Greedy Wall Street CEOs
Washington, DC— In a statement today Congressman Ciro D. Rodriguez (TX-23) explained to his constituents why he decided to vote against HR 1424 in a bipartisan vote:
“There is no doubt we are feeling the stress of our economic woes. Though recently we have seen gas prices start to go down, prices for gas and food are still too high and just today it was announced that more and more Americans are losing their jobs.
”While San Antonio, along the border and many of our other communities have not been immune to the national economic downturn we have been fortunate that our local communities have worked toward building stable economies. The fact that our local economies and housing markets have been somewhat stable makes this mess all the more frustrating.
”Let’s not forget why we are in this unfortunate situation. It was greedy, Wall Street investors and the regulators who were asleep at the wheel that brought us to this boiling point.
”I believe it is imperative that we do something to address or economic situation. But, throughout this process, I have made clear that while this may be a necessary evil, it cannot be a gift that puts undue burden on the American taxpayer.
”Like many other members of Congress in both parties, I have struggled with the decision to support this recovery package. There is no question that the package before the House is an improved version of the proposal the Administration sent to Congress and the proposal that failed in the House before that with my vote in the bipartisan majority against it.
”However, despite the fact that this proposal has its merits, I continue to have concerns that it lacks the protections to fix the waste, fraud and abuse by irresponsible corporations that caused this problem, provides little direct assistance to American families, does not go far enough to cut the strings off the golden parachutes of the irresponsible CEO’s, and does not do enough to address the problem of American tax dollars benefiting foreign banks.
”Experts have had a variety of opinions including uncertainty of what plan may work best. Our situation will have long term repercussions and rushing into a solution because there is an election around the corner is not acceptable. Let’s make sure we pass something that will work before we do something that could further endanger our economy.
”If we are asking the American people for generations to come to shoulder a large and enduring burden because of the irresponsible and greedy actions of Wall Street, they deserve to be heard and deserve the right plan of action.
”This new bailout bill is closer, but it's not close enough and it's why I voted "no" on the $700 billion bailout.”
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Congressman Ciro D. Rodriguez is a former social worker who currently serves on the House Committee on Veterans Affairs and the powerful House Committee on Appropriations. For more information on Congressman Rodriguez please visit http://rodriguez.house.gov or contact his Press Assistant Phallan Davis at phallan.davis@mail.house.gov
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U.S. HOUSE PASSES EMERGENCY ECONOMIC STABILIZATION ACT
WASHINGTON, D.C. – Congressman Silvestre Reyes (D-El Paso) today joined a bipartisan majority in passing legislation to bring stability to the nation’s troubled financial system. The Emergency Economic Stabilization Act of 2008 (H.R. 1424) will restore liquidity to U.S. financial institutions to help prevent Wall Street’s troubles from affecting ordinary Americans. The measure passed by a vote of 263-171, and the President later signed the bill into law.
“I am upset that the years of Wall Street greed have put us in this situation, but without decisive action, we fear the current lending freeze will have severe consequences for families and small businesses owners as loans become increasingly scarce,” Congressman Reyes said. “Although this legislation is not perfect, it is vastly different from the administration’s request for a ‘blank check.’ This bipartisan compromise includes greater protections for taxpayers, strict oversight and new regulations that will limit executive pay, and measures to help ordinary Americans at risk of foreclosure.”
The Emergency Economic Stabilization Act of 2008 will enable the Department of Treasury to purchase mortgage-backed assets from financial institutions so that banks may continue providing loans which are essential to economic growth. The plan will reimburse taxpayers through partial ownership in participating companies and other measures that will recover assets from Wall Street corporations to recoup potential losses. Congressman Silvestre Reyes joined Democratic leaders in urging greater protections for taxpayers and more oversight. If the cost to the taxpayers is not paid in full within five years, the legislation directs a future President to deliver a plan to Congress to recover the remaining costs from Wall Street firms.
The legislation eliminates multi-million dollar golden parachutes for executives who retire from failing companies and places limits on executive compensation, and establishes strong independent oversight and transparency to ensure accountability.
Three separate oversight entities will closely monitor the Treasury’s implementation and management of the plan. A board appointed by bipartisan leaders of Congress will have the authority to overturn the Treasury’s decisions, and a new Inspector General will monitor all decision made by the Secretary. The Government Accountability Office will also conduct audits to prevent waste, fraud, and abuse. The bill establishes meaningful judicial review of the Treasury Secretary’s actions, and requires that all transactions under this plan be posted online for the public viewing.
H.R. 1424 provides tax relief and other measures to help ordinary Americans. The legislation provides tax cuts for over 20 million families who would otherwise see an increase in their tax liability due to the Alternative Minimum Tax (AMT). Nearly 22,000 households in El Paso would have been at risk of paying higher taxes without the passage of this AMT fix. The bill also includes a 10-year extension of the state and local tax deduction that will allow El Pasoans to continue deducting the sales tax from their federal income tax liability.
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