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-- Ok so the bailout was rejected, or whatever
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This is from my congressman...

quote:

Dear Friend: Thank you for contacting me about H.R. 1424, the Emergency Economic Stabilization Act. I appreciate knowing your thoughts on this critical issue, and I thank you for taking an interest in your government. As you are well aware, we are facing a global economic downturn as serious as any in the lifetime of most Americans. Like you, I am extremely frustrated by the outcome of the deregulation of our financial markets, lack of oversight and accountability, and excessively risky behavior on the part of financial institutions, all of which threaten the stability of our economy and jeopardize our individual financial security. Economic Turmoil Recently, Congress voted on legislation to respond to the extreme economic turmoil facing our nation. Voting for this measure was very difficult for me. But, this crisis required swift and decisive action, and we in Congress worked across party lines to address it. Ultimately, I voted in support of a measure I believe will help restore confidence in our nation's financial institutions and will take steps to prevent Wall Street's troubles from further affecting ordinary Americans. Among those effects, many Americans have already seen the value of their retirement savings plunge recently due to the volatility in the stock market, and the frozen credit market is already straining small businesses and could impact lending for ordinary Americans. For the last several years, Wall Street engaged in irresponsibly risky lending practices in the hope of making billions of dollars in profit. Today, those actions have caused an extraordinary tightening of credit markets. As a result, individuals living paycheck-to-paycheck could see their credit card limits slashed and interest rates increased. Consumers could also find it harder to get the loans they need to pay for school, buy a car, or refinance a home. This is affecting industries across the board, and our overall economic growth is slowing considerably. Even healthy businesses are finding it increasingly difficult to get short term loans to help with cash flow. This could jeopardize their ability to meet payroll or pay daily operating expenses, and many businesses could find themselves needing to lay off personnel. Though limited access to credit is not affecting all companies at once, it could soon become a larger problem. We are already seeing the consequences of the tight credit market in the monthly increase of the national unemployment rate. Given that credit is the driving force in our economy, this financial rescue legislation is an attempt on the government's part to loosen the credit market and keep our economy from going into a more severe recession. The Legislation H.R. 1424 was signed into law on October 3, 2008. Although the final legislation is not perfect, it is vastly different from the Bush Administration's initial 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. Specifically, H.R. 1424 will enable the Department of Treasury to purchase problematic assets from financial institutions so that banks may continue providing loans which are essential to economic growth. Of the $700 billion authorized for this use, $250 billion is already available and another $100 billion will be available upon a presidential certification of need. All of these actions are subject to Congressional review, including the release of the final $350 billion. Three separate oversight entities will closely monitor the Treasury Department's implementation and management of the plan. A board appointed by bipartisan leaders of Congress will have the authority to overturn the Department of the Treasury's decisions, and a new Inspector General will monitor all decision made by the Treasury 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. In addition to selling back assets assumed by taxpayers once the markets stabilize, the plan will reimburse taxpayers through partial ownership in participating companies and other measures that will recover assets from Wall Street corporations to cover potential losses. 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. For companies who sell their troubled assets to the federal government, the legislation also limits top executive pay and eliminates multi-million dollar golden parachutes, or contracts which direct the payment of large benefits in the event a company is acquired or the executive is terminated. In order to help average Americans, the bill includes provisions to address foreclosures and greater protection of deposits. H.R. 1424 requires the Treasury Department to draft a plan to require that government-owned mortgages in danger of foreclosure be diverted to loan workout programs to prevent the foreclosures that are driving down home values across America and encourage financial institutions to do the same. Another provision increases the Federal Deposit Insurance Corporation (FDIC) deposit insurance limit from $100,000 to $250,000 through 2009. The Work Ahead As I mentioned previously, H.R. 1424 is meant to address the immediate problems facing our economy. This does not mean that those who caused this situation will not be held accountable. The House Oversight and Government Reform Committee is holding hearings throughout October to examine the regulatory mistakes and financial excesses that led to the market breakdowns on Wall Street. The first two hearings were held the week of October 6th to determine what led to the bankruptcy filing by Lehman Brothers and government intervention for American International Group (AIG). Hopefully, the findings of these hearings will guide necessary legislative action during the upcoming months. Other Congressional Committees holding investigative hearings include the Budget Committee, the Education and Labor Committee, the Ways and Means Committee, the Joint Economic Committee, and the Transportation and Infrastructure Committee. It is clear that the House of Representatives will continue to focus our efforts on both accountability and economic recovery. The Federal Bureau of Investigations (FBI) has also begun investigations into possible fraud involving the four giant corporations at the center of the financial crisis � Fannie Mae and Freddie Mac, Lehman Brothers and AIG � including their executives. In addition to the major corporate cases, the FBI has approximately 1,400 open investigations into smaller companies and individuals suspected of mortgage fraud. Beyond holding individuals and companies responsible for the situation we are in today, Congress is also working to bring further relief to the American people. Over the next few months, the House of Representatives is expected to consider further legislation in response to the financial crisis. Among the measures proposed are investments in critical infrastructure to both provide jobs and rebuild our roads and bridges, tax and other relief to stimulate the economy and assist those who have lost their jobs, and a temporary relaxing of some laws to help individuals facing financial difficulties as a result of the devaluation of their retirement and education investment accounts. Impact on El Paso As a rapidly growing border city, El Paso cannot afford to lose businesses and jobs due to the tight credit market. Though our region's economy has been relatively stable, the national financial crisis has already had an impact on El Paso. An example is the recent halting of the Northeast El Paso housing development project due to lack of financing. Although this legislation wasn't perfect, it was far better than what was initially proposed by the White House. This was a extremely difficult vote for me; however, not taking action would have been very detrimental not only to our country but also to El Paso, and for those reasons I supported legislation to help alleviate the current financial crisis and to restore needed oversight of Wall Street. Please contact me or my staff if I can be of further assistance. Also, please visit my website, www.house.gov/reyes to sign up for my email newsletter, learn about my recent activities, and obtain information on federal programs. Sincerely, Silvestre Reyes Member of Congress

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