Issa Offers Amendment to Put America First

Congressman Darrell Issa today unveiled an amendment to H.R. 1424, the vehicle for the Paulson Bailout Plan, that would direct the Secretary of the Treasury to give preference to purchasing securities held by FDIC insured banks over those held by foreign institutions and speculators as part of any purchase program. Secretary Paulson has confirmed that foreign banks and institutions would be part of the proposed bailout.

"A taxpayer funded purchase of troubled mortgage assets is a flawed approach to fixing our economy. However, if the taxpayers are going to pay for a bailout, it needs to be focused on the U.S. economy and not foreign institutions in China, the Middle East, and Europe or speculators who bought securities on a recent gamble," said Issa. "Troubled institutions in other countries should be seeking assistance from their own governments."

The Issa Amendment to give preference to purchasing mortgage securities in the following order:

1. Those acquired by FDIC insured banks before Jan. 1, 2008
2. Those acquired by other U.S. institutions before Jan.1, 2008
3. Those acquired after January 1, 2008 (with a purchase price cut to penalize last minute speculation)
4. All others

A copy of the Issa amendment that will be considered by the rules committee is attached. Rep. Issa remains opposed to the bailout plan passed by the Senate in its current form.

Source