Emergency Economic Stabilization Act of 2008

Floor Speech

EMERGENCY ECONOMIC STABILIZATION ACT OF 2008 -- (House of Representatives - October 03, 2008)

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Ms. RICHARDSON. Madam Speaker, I rise in support of H.R. 1424. I want to commend Chairman Barney Frank of the Financial Services Committee for his hard work, leadership, insight, and guidance throughout this process.

The Congress and Senate did not come to the decision of supporting this legislation lightly. All of my colleagues on both sides of the aisle participated in numerous Caucus meetings and conference calls with Secretary Paulson, and Federal Reserve Chairman Bernanke. We took into consideration the views of renowned economists, and we considered numerous legislative proposals. After much deliberation we came to the conclusion that this legislation was the best bipartisan effort to contain strict oversight to prevent repeating this crisis, limit executive compensation, initiate provisions for mortgage stabilization, and ensure protections that taxpayers deserve.

This legislation is a rescue plan. Main Street is hurting because small businesses do not have access to credit, which they depend on to cover the cost of their daily operations, including payroll. Likewise parents and students cannot get student loans, so it is clear that the financial crisis is hitting every street corner in America.

Perhaps what has been lost in this debate is the effect that this crisis has had on our municipalities and local governments. Many of these municipalities and local governments had their investments tied to these Wall Street institutions. In California public entities have at least $300 million at stake; in fact San Mateo has lost $150 million. If our local governments fail, they will not be able to provide the most basic services (i.e.--police & fire services, trash collection, and education).

I recognize that this is a difficult decision for many of my colleagues. Historians have said these are dire times only second to the Great Depression. I urge my colleagues to act now, and support this critical piece of legislation that will stabilize our residential neighborhoods, small businesses across this country and our economy.

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