Home > NewsPelosi Statement on Paulson’s Remarks on the Credit Crunch and Home Foreclosures
Pelosi Statement on Paulson’s Remarks on the Credit Crunch and Home Foreclosures
Monday, October 20, 2008
Contact:Brendan Daly/Nadeam Elshami, 202-226-7616
Washington, D.C. -- Speaker Nancy Pelosi today issued this statement following remarks by Treasury Secretary Henry Paulson who called on financial institutions about to receive $250 billion in capital infusions from the federal government to use part of such capital to free up the flow of credit in financial markets. Paulson also urged financial institutions to work with homeowners to avoid foreclosures.
“The Congress voted to provide capital to financial institutions so they could expand lending to businesses and consumers in American, not to prop up their own reserves. I told Secretary Paulson last week that banks must use the public dollars they receive to free up the flow of credit and instill confidence in our financial markets. Mr. Paulson’s statement today reinforces Congress’ intentions in making these funds available.
“Secretary Paulson also told financial institutions participating in the federal capital infusion program to work with homeowners to avoid foreclosures, another key congressional addition to the original Administration proposal. These financial institutions have a responsibility to the communities they serve to help avoid foreclosures, and to help keep neighborhoods strong.
“The goals of the economic rescue package are clear: stabilizing markets, easing the credit crunch, and growing the economy, while protecting the taxpayers. Congress will continue to monitor the implementation of the rescue package and will work with the Secretary in a bipartisan manner to meet these critical goals.”
