Published: October 02, 2008 12:22 pm            

Chambliss, Isakson statements on financial rescue package

Submitted by Sen. Isakson's office



WASHINGTON - U.S. Sen. Johnny Isakson, R-Ga., Wednesday praised the Senate’s passage of legislation designed to stabilize the economy, free up credit and restore confidence in the U.S. financial markets.

“Tonight was not a night to say no to the future of the American people. Tonight was not a night to say we don’t have a responsibility to help,” Isakson said. “This is on the shoulders of the Congress. The people affected are our constituents who voted for us and sent us here. This legislation is critical to allowing us to unclog the financial markets, free up credit to the average American and over time restore the American economy to what it has been and always will be - the best entrepreneurial capitalistic system in the world.”

The legislation authorizes the Treasury Secretary to immediately use up to $250 billion to purchase distressed assets from institutional investors. If needed, the secretary may then access an additional $100 billion to purchase these distressed assets but only with presidential approval.

An additional $350 billion may be accessed if the president transmits a written report to Congress requesting the funds. The Treasury Secretary may use this additional authority unless Congress passes a joint resolution of disapproval within 15 days.

The legislation includes a number of provisions to ensure oversight by Congress and accountability to the taxpayers, including prohibitions on executive compensation to ensure bad actors are not rewarded. Specifically, companies that receive more than $300 million from this plan will have limits placed on their top five executives. These limits include a ban from receiving a “golden parachute” as well as limits in the tax deductions they can take on compensation over $500,000.

The legislation also continues the suspension of “mark-to-market” accounting rules that are already in place today.

“This bill does precisely the one thing that we can do to help unlock the credit markets and help the average working Georgian, the average Georgia retiree, the average Georgia child who is looking to the future to benefit from what right now is a very difficult situation,” Isakson said. “I encourage the House to act quickly on this legislation, because inaction on this plan will continue a downward spiral that will accelerate, will deepen and will touch every life of every American citizen and it will touch it and harm it for a long, long period of time.”

The bill passed the Senate by a vote of 74 to 25. It is expected to be considered in the House later this week.

The bill does not allow bankruptcy judges to restructure the terms of existing mortgage loans. Additionally, it does not provide funds for affordable housing community organizers such as ACORN.





U.S. Sen. Saxby Chambliss, R-Ga., Wednesday made the following statement after the financial rescue package, the “Economic Stabilization Act,” H.R. 1424, was approved by the Senate:

"Our country is facing the most serious and critical domestic issue I have dealt with in my 14 years in Congress. We have been betrayed by many people, and greedy Wall Street executives have abused the system, leaving taxpayers to feel the pain.

"Today, I had a significant choice to make between two very different courses of action - do nothing at all or do what I truly believe is best for America. I believe to the core of my being that doing nothing will devastate our economy, destroy the financial security of millions of Americans and could possibly force our nation into a depression. I just as strongly believe the bill as it has been negotiated, and that I just voted for, will provide stability during this crisis and will begin to turn our economy around.

"Let me be clear - this is not a bailout. This bill has been carefully crafted to arrest our current financial crisis, restore security for the American taxpayer and ensure that our nation is the strongest economic power in the world.

"And every citizen can know with confidence that any individual who engaged in illegal activity - whether they are the executive of a financial institution or a member of Congress - if their illegal actions forced our nation into this crisis - then they will be prosecuted to the full extent of the law.

"I know that my vote in favor of this package was not the politically popular thing to do, but this is not a popularity contest. This is about the future of our country and the future that my children and grandchildren will inherit. I have absolutely no doubt in my mind or my heart that my vote tonight in support of this measure was the right thing for our economy, for Georgians and for our country."

        

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