Foreclosure Prevention Act of 2008

FORECLOSURE PREVENTION ACT OF 2008 -- (House of Representatives - May 08, 2008)

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Mr. AL GREEN of Texas. I thank the chairman for the time, and I thank the chairman for his tireless efforts to bring this to the floor. I question this moral hazard argument.

I question it because I have to ask myself, where was the moral hazard
when we bailed out Penn Central? Penn Central got more than laissez faire. Penn Central got more than market forces. Penn Central got $7 billion in a bailout.

Where was the moral hazard when we bailed out Lockheed Martin, $250 million? Franklin National Bank, $1.7 billion bailout. For the good of the country, we bailed out Chrysler at the tune of $1.5 billion; Continental Illinois, $4.5 billion; Farm Credit System, $4.5 billion; First Republic Bank, $1 billion. Major airlines got $5 billion, the steel companies got $7 billion.

Where was the argument about Bear Stearns that was never brought to the floor? I have heard about a letter that has been circulated. Why didn't you bring the argument to the floor? Let's talk about the Bear facts, the Bear Stearns facts. Bear Stearns got $29 billion in a bailout and a $13 billion loan.

So if you really talk about the Bear facts, the Bear Stearns facts, you are talking about $42 billion. We live in a world where it is not enough for things to be right, they must look right.

It doesn't look right for this country to continually bail out major corporations. When the American people, little people as we sometimes call them here--they are big in my heart--but the little person needs some help, we don't find it within our hearts and our power to help them.

We have the ability to make a difference in the lives of people today. This is why I am encouraging my colleagues to vote for this bill.

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