Boozman Opposes Permanent Bailouts

Statement

Votes to Audit Federal Reserve

U.S. Representative John Boozman issued the following statement in opposition to the Conference Report on H.R. 4173, a bill that creates permanent bailouts, rewards failed regulators and makes it more difficult for consumers to access credit.

"I believe reforms are necessary to protect taxpayers, investors, and consumers, and make Wall Street responsible for its actions. I support proposals that modernize our financial regulatory structure, end bailouts, enhance consumer protection, rein in and audit the Federal Reserve, and protect taxpayers without growing government. Unfortunately this massive piece of legislation will not reform Wall Street or prevent another economic collapse. Rather, it will place new costs on businesses, ration capital and credit, and place new red-tape on job creators, leading to further job losses, which is the last thing our economy needs right now.

"Congress needs to create policies and pass laws that prove lawmakers are stewards of taxpayer dollars. One way to do this is by reducing the size of government. Unfortunately, this legislation does just the opposite. The plan creates a new federal agency that dictates the kind of financial products you can buy. Instead of protecting the American people, this new agency will limit credit and investment options for families and small businesses.

"I agree that we do need reforms to our financial services industry and those must include reforms to Fannie Mae and Freddie Mac which played a central role in causing the turmoil that devastated our economy and has cost taxpayers $145 billion. We need to end the federal government's failed experiment that gave windfall profits to Fannie and Freddie's executives and handed the taxpayers the tab for the losses.

"This legislation is misguided and will only lead to more bailouts and corruption in the financial sector. The government should restore market discipline with the kind of free market solutions that create jobs and protect taxpayers."

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