Statement on Financial Bail-Out
Congressman Todd Platts issued the following statement on October 3, 2008, explaining his vote against a $700 billion bill to bail-out Wall Street (H.R. 1424). A prior version of the legislation had been defeated in the House by a vote of 205-228. The House approved H.R. 1424 by an overall margin of 263-171, however, and it was signed into law on the same day:
“Today the House of Representatives voted to approve legislation authorizing Treasury Secretary Henry Paulson to purchase up to $700 billion in troubled Wall Street investments with taxpayer funds. I voted against this legislation, just as I voted against the previous version defeated in the House only days ago.
As I stated after the last vote, this legislation will put American taxpayers on the hook for the reckless actions of Wall Street and irresponsible lenders with little certainty of truly solving the underlying causes of our nation’s economic challenges. The federal government clearly has a responsibility to help protect retirees, families, and small businesses on Main Street from the consequences of irresponsible conduct on Wall Street. However, Congress must fulfill this significant responsibility in a manner that addresses the root causes of the economic risks facing our country and, importantly, best protects American taxpayers.
The defeat of the previous bill on Monday led to some positive changes that will help do this. For example, by finally amending its “mark-to-market” rule, the Securities & Exchange Commission (SEC) has belatedly recognized how its regulations contributed to the liquidity problems now facing the banking system. In addition, the bill passed by the House—unlike the bill previously rejected by the House—will temporarily increase the deposit insurance limit for FDIC-insured banks. This will help stop any financial panic in a manner much more targeted to the middle class than a bail-out of Wall Street firms.
Despite these improvements, the bill continues to put taxpayers on the hook for the full $700 billion requested by Secretary Paulson and raises the debt limit by $1.3 trillion. I have communicated to both Congressional leaders and Federal Reserve Chairman Ben Bernanke my objections to providing so much taxpayer money up front for a program that even its advocates acknowledge may not work. House leaders refused to allow an amendment to be offered lowering the amount to $250 billion, at least until the program is proven successful. Instead, an additional 300 pages in extraneous matters were added to the bill.
In light of the economic uncertainties facing the country, this was not an easy vote for many Members. Action clearly needed to be taken. That said, I remain unconvinced that the circumstances required the rapid approval of $700 billion in taxpayer funds under a closed process. Now that the bill has been passed and is expected to be signed into law by the President, Congress must ensure adequate oversight that will guarantee the best outcome possible for both taxpayers and the economy as a whole.”
Moratorium on Off-Shore Energy Exploration Expires
On October 1, 2008, the ban on additional energy exploration off the coast of the United States expired. This ban had been routinely included since 1978 as a “rider” in larger appropriations measures funding the operations of the federal government. The expiration of the ban followed efforts to highlight the energy issue on the House floor over the month of August (see the e-newsletter for August).
Congressman Platts called the expiration of the ban one step in addressing the nation’s energy needs, along with greater conservation initiatives, the long-term development of alternative energy supplies, and accessing oil and natural gas resources from a small portion of the Arctic National Wildlife Refuge (ANWR) in an environmentally-friendly manner. Because appropriations have to be enacted annually, the issue of whether to reinstate the ban is likely to be considered again in 2009.
Please do not attempt to reply to this message, as it is an unattended mailbox. If you wish to contact me about an issue addressed in this newsletter, or would like more information on what is happening in Congress, please visit my Web site at www.house.gov/platts for more information.
To unsubscribe to this newsletter, please visit my Web site and click the "E-Newsletter" link and follow the instructions.