ARCURI VOTES FOR BIPARTISAN PLAN TO ADDRESS THE NATION’S FINANCIAL CRISIS AND PROTECT AMERICAN TAXPAYERS

21st Century Safeguards for 21st Century Financial Markets

WASHINGTON, D.C. – Following a week of bipartisan negotiations between the House of Representatives, Senate and White House, U.S. Representative Michael A. Arcuri (NY-24) today voted for comprehensive legislation to stabilize the current financial crisis and protect the interests of American taxpayers.

“I am gravely disappointed that we even had to consider this economic stabilization plan – and even more distressed that my colleagues failed to pass this critical legislation – but the cost of doing nothing is too great for the American people, our nation’s financial industry and New York to bear,” Arcuri said. “I remember far too clearly the stories my parents and grandparents told me of the dire situation our nation faced during the Great Depression. We can not afford to risk that happening again. This crisis extends far beyond Wall Street because, without action, credit for small business owners, banks and average Americans would dry up, businesses would be forced to close and jobs would be lost. The package includes the necessary regulations to ensure better oversight going forward, repayment to taxpayers, and no golden parachutes for the executives who have failed us.”

The financial stabilization, which did not pass the House of Representatives today, would have allowed the U.S. Treasury Department to immediately purchase $250 billion in distressed mortgage-backed securities and other troubled assets from financial institutions, and would allow the President to later authorize use of an additional $100 billion.

The Financial Stabilization Package (H.R. 3997, the Emergency Economic Stabilization Act), made additional improvements over the Administration’s original proposal, including:

Strong independent oversight and transparency;
Limits on excessive compensation for CEOs and executives of participating financial institutions;
Provisions to ensure that taxpayers share in any profits resulting from the federal government’s assistance; and,
Actions to prevent the foreclosures that are driving down home values across America.

“The Treasury Secretary’s original proposal to Congress did not do enough to protect the interests of American taxpayers,” Arcuri said. “After bipartisan cooperation, the bill I supported today strengthens regulations and oversight, ensures CEOs responsible for the problem don’t run off with billion dollar severance packages, and guarantees the American people get their tax dollars back. As a member of the Blue Dog Coalition, we fought to make sure the financial stabilization package is fiscally responsible and provides the American taxpayers with the peace of mind that they will be paid back and even get a return on their investment and recoup any losses.”

“This situation may have been avoidable, but unfortunately, previous Administrations and past Congresses took the referees off the field by removing critical regulations that were put in place in the wake of the Great Depression,” Arcuri continued. “We must take action in the coming days to get our economy back on track.”