Sessions Condemns Gov't Takeover Bill For Financial Sector

Press Release

U.S. Congressman Pete Sessions today voiced strong opposition to the 1,300-page financial services regulation bill before the House of Representatives. The latest in a series of government takeovers, this financial "reform" package includes provisions to extend the Troubled Asset Relief Program, make federal bailout authority permanent, allow bureaucrats to determine the types of financial products available to consumers, and set the salaries of private sector employees.

"This financial regulatory scheme is yet another example of government intervention in the private marketplace," said Sessions. "In a time of double-digit unemployment and record deficits, Congressional Democrats' continue to advance a job-killing agenda that will grow the size of government, ration resources, and limit consumer choice."

To create permanent government bailout authority, the bill levies $150 billion in taxes on American businesses that will ultimately result in higher interest rates and increased fees for consumers. According to the Financial Services Committee, this enormous new tax burden will shrink available credit by as much as $55 billion and result in the loss of as many as 450,000 jobs.

In an effort to protect American workers from the job-killing provisions of this bill, Sessions offered an amendment in the House Rules Committee to void the legislation if the Government Accountability Office finds that the provisions of the bill would kill one million jobs or more. Sessions' pro-jobs amendment was defeated by Democrats on the Rules Committee by a 9-4 party line vote.

"With over 16 million Americans unemployed, the top priority of this Congress should be job creation. Unfortunately, politics are more important than policy in this House," said Sessions. "I believe that it is past time to stop the bailouts, get the government out of business industry takeovers, and stop killing jobs."

The financial regulatory scheme also creates a so-called Consumer Financial Protection Agency (CFPA) led by a "Credit Czar" who will have unprecedented, unchecked authority to restrict product choices for consumers and impose fees on consumer products and financial transactions.

Several private rights of action provisions are included in the bill that would open up the financial sector to widespread and frivolous lawsuits for the benefit of trial lawyers. Sessions offered three amendments to eliminate House Democrats' plans for a trial lawyer bonanza. The Majority of the House Rules Committee accepted only one of Sessions' amendments -- one which would eliminate a new, unnecessary private right of action against credit rating agencies and keep necessary oversight with the Securities and Exchange Commission.

"While House Democrats made sure to pad the pockets of trial lawyers, this bill does nothing to create private sector jobs or provide financial relief to Americans in these tough economic times," said Sessions. "Ensuring consumer safety is absolutely necessary for a healthy economy, and I stand ready to build common-sense reform that empowers people -- not the government -- to prosper and create jobs under the free enterprise system."

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