Madam Speaker, I rise in support of H.R. 1424 because it is, in my opinion, our last opportunity to save jobs, save small businesses, and I pray prevent a collapse of our economy. I believe that is what we are facing today. I have heard…
Madam Speaker, I rise in support of H.R. 1424 because it is, in my opinion, our last opportunity to save jobs, save small businesses, and I pray prevent a collapse of our economy. I believe that is what we are facing today.
I have heard from hundreds of Nebraskans who have contacted me by phone, email, or have just come up to me when I was home. All of them are angry. Angry at the greed, arrogance, and just plain reckless nature of Wall Street. Angry at Congress and the administration who have now proposed using taxpayers' dollars to bail out those greedy investment bankers, traders, and CEOs. People have every right to be angry at these self-important Wall Street executives who cared more about themselves by making a quick buck no matter the risk or lack of ethics just so they could earn multi-million dollar salaries.
Madam Speaker, I share that anger. Maybe even a little more, as my constituents have transferred their anger onto the one who they can reach out to--me. I have to admit that listening to their anger and fright, sharing their true feelings, but knowing that I have the responsibility as their Representative in Congress to do something to help them, has increased my frustration to a level I've never experienced before as a Member of Congress. Still, something must be done. Inaction may be ``something,'' but it is not the answer.
I now know that to save ourselves we must also save the pigs. Those greedy pigs on Wall Street don't deserve help from hard-working Americans. But allowing them to fail will cause so many other businesses that conducted their business in good faith, ethically and conservatively to lose access to credit, lose business, and eventually maybe have to close their doors. Yes, even in Nebraska, far away from Wall Street. I have heard from several business leaders in Omaha who say they will have to lay off some employees if liquidity in our financial system is not restored. One business owner told me they are at risk of shutting their doors and every employee will be laid off. My vote today is to help the people of Nebraska, protect their jobs, and protect their savings.
So, is this bill the best answer? Probably not. I prefer stimulating the economy by eliminating or suspending the capital gains tax, providing an incentive to purchase of homes with a tax credit, transferring the toxic mortgage debt to the free market, using insurance to cover future debt, and encouraging the Federal Reserve to release more money to central banks for increased liquidity. I also support suspending an arcane federal accounting rule mandated on publicly traded companies known as ``mark to market''.
The mark to market rule forces firms to report the current market value of an asset. So when no market exists at a point in time for an asset then its value is zero or next to zero. But the asset has value and will have more value in the future. The rule is unforgiving and has caused companies to declare they are bankrupt--when they are really worth more.
Madam Speaker, the first bill brought to Congress by Treasury Secretary Paulson on Monday, September 22, was insulting. The bill would have given Secretary Paulson complete control over $700 billion, no questions asked, no transparency, no accountability, and no punishment of the hogs on Wall Street.
After several listening sessions with Members our leadership began negotiations with Secretary Paulson. These talks were painful and long with many starts and stops and a premature declaration of done deal. After several days, a true deal was announced. Some of the good ideas by Members to improve the bill were included, but very few.
I knew we could do a much better job to protect the taxpayers and I felt the responsibility to continue to try. I also knew that I could vote ``no,'' and allow the bill to fail. Then, maybe then, the administration would listen.
That's exactly what happened. I voted against it and once again offered seven provisions to the White House and leadership to make it a better bill. Those improvements included suspension of mark to market, more use of FDIC insurance, and reinstating the so-called ``uptick'' rule. The first two priorities were agreed to and made a part of the final bill.
This bill prohibits the use of tax dollars for executive severance packages, creates a board of directors to approve of the Secretary of Treasury's decisions spending tax dollars, greater oversight by Congress, slowing the release of tax dollars, allowing the SEC Chairman to waive the mark to market rule when no market exists for a particular asset (the SEC chairman agreed to do so), and providing insurance to limit the taxpayer's risk of loss where the Government purchased toxic debt.
Finally, I want to thank a number of individuals in the Omaha community who took the time to talk to me about the bill and legitimacy of the crisis. They made me better informed about this problem from a Nebraska perspective, thereby allowing me to step back and be more thoughtful on how to proceed. Your advice and assistance was much appreciated.
Madam Speaker, this is not the perfect solution, it's not even a good one, but it is the solution before us today. And I will support it because I can't look into the eyes of someone who has just lost their job and say, ``I did nothing to help.''