Washington, DC - Congressman John D. Dingell (D-MI15) released the following statement today during debate of the bipartisan Emergency Economic Stabilization Act of 2008 (H.R. 1424), which passed the House of Representatives by a vote of 263 to 171.  The legislation, produced as a result of bipartisan negotiations, amended the proposal offered by President Bush and Treasury Secretary Henry Paulson by including provisions to provide greater oversight and transparency, to limit the ability of participating companies to award their executives with golden parachutes, to assist homeowners facing foreclosure, and to ensure that taxpayer dollars would be recouped.  The bill also increases the maximum amount of FDIC deposit insurance coverage from $100,000 to $250,000 per account and includes a tax extenders package that includes business and energy tax extenders, mental health parity legislation supported by Congressman Dingell, an alternative minimum tax patch to protect middle-class tax payers, and additional disaster assistance for states devastated by natural disasters.  The Senate passed the bill by a vote of 74-25 on Wednesday night and it now goes to President Bush for his signature.

Statement of Congressman John D. Dingell on the Emergency Economic Stabilization Act of 2008:

“Madam Speaker, on Monday I urged my colleagues to support economic recovery legislation, and I continue to urge them to do so today.  When I voted against the Gramm-Leech-Bliley Act in 1999 I warned my colleagues that the government would one day be called upon to rescue failing financial institutions.  As angry as I am that my prediction was accurate, I know that on this day inaction is not an option.  I still have reservations about this legislation.  I do not believe it sufficiently addresses the financial services industry deregulation that allowed this crisis to happen, and I do not believe that it does enough for struggling families.  However, I know that the people of this country cannot afford to go another day without action. 

“After our failure to pass this legislation on Monday the stock market suffered the greatest one day decline in its history.  The Wall Street executives and investment bankers that got us into this mess surely took a hit, but so too did individual retirement accounts and state pension funds.  For example, the State of Michigan estimates that individual investors in the state have lost over $27 billion in the stock market in the last year, and the Michigan Pension Fund lost $2.3 billion on Monday after the House voted down this plan.  Should Wall Street decline further and the value of the dollar continue to fall, it will mean greater unemployment, even higher prices for basic commodities, and access to credit for things like college education or home improvements will be even harder to obtain.  The impact on the broader economy will be felt by every American. 

“In fact, the lack of credit in the marketplace is already affecting some parts of the broader economy. Auto sales were down twenty-seven percent in the past year, in part because consumers cannot get access to credit for car loans.  The automobile financing companies are not responsible for the current credit crisis, but they will be eligible to participate in this program to obtain the credit they need to keep vehicle sales strong.  This week I learned about a financially sound manufacturing company in Michigan that is seeking a mortgage to replace its current building, which it has outgrown, with a new facility that will allow the company to expand its operations and add much needed jobs.  This company is struggling to even find a bank willing to loan it money.  Small and medium sized business did not cause this crisis, but unless this crisis is addressed and the credit markets are restored they will find themselves unable to do business. 

“Despite my lingering concerns that this is not the best possible way to address this crisis, we clearly have to act to avert a much larger economic failure.  In the months ahead, we can continue to revisit these issues and work together to adopt measures that restore the regulatory structure that is supposed to protect the financial system from this kind of failure, and that provide much needed assistance to the hard working men and women who are suffering because of the economic climate created by irresponsible parties on Wall Street and here in Washington.  I urge my colleagues to support the legislation before us today as a matter of great national urgency.”

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