America needs bipartisan action now to get our economy back on track. Our House-passed legislation would begin the process of economic recovery by investing in job-creating infrastructure projects and helping struggling Americans with emergency food assistance and prevent deep cuts in health care and essential services. At a minimum, President Bush should support providing emergency food assistance and aid to states to maintain health care coverage for millions of Americans this holiday season.

I again call on President Bush and Senate Republicans to work with us and get our economy moving again.

 The head of the FDIC said Tuesday the government needs to devise an “exit strategy” for its massive financial rescue plan to avoid artificially propping up banks and other institutions over the long term...

The far-reaching government guarantees extended under the rescue program -- now including $250 billion set aside for the Treasury to buy stock in U.S. banks, hundreds of billions in aid to giant financial institutions and hundreds more billions in special lending facilities to banks -- must be carefully assessed, Bair said.

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]]> Wed, 03 Dec 2008 14:25:01 CST Today the Chicago Tribune takes a closer look at The Employee Free Choice Act:

Organized labor helped elect Barack Obama and now eagerly awaits his promised support for its top priority—a bill that would make it easier to set up union locals…

The so-called card-check bill would not protect workers and it would not be “free choice.” It would strip away their right to vote in secret, making it more likely they would face intimidation from organizers and other workers. The pressure would be on to check the card, whether or not they actually wanted a union.

It’s clear why union bosses want this law. Union membership ticked up last year, but it has been plunging for half a century….Union leaders prefer to blame the decline on federal labor laws, which they say make it too hard to organize. That’s a pretty flimsy argument. Present law allows the National Labor Relations Board to call for an election by secret ballot after 30 percent of employees at a work site have requested a vote. That’s hardly a high hurdle.

There are ways to recast the nation’s labor laws so workers’ interests are protected, without subjecting them to more intimidation by union organizers…In short, create more incentives for labor and management to negotiate in good faith and preserve the workers’ right to a secret ballot…

The inaptly named Employee Free Choice Act would be good for labor bosses. But it wouldn’t be good for laborers.

]]> Wed, 03 Dec 2008 12:44:21 CST ]]> Wed, 03 Dec 2008 11:15:10 CST Chairman Barney Frank issued the following statement regarding the Government Accountability Office (GAO) report on the Treasury Department’s implementation of the Troubled Asset Relief Program (TARP):

The American people received two kinds of news about the TARP program – bad and worse news.

The bad news was confirmation by the GAO in its first report about the program that Treasury has no way to measure whether taxpayer funds invested in banks are being used in accordance with the purpose of the law – to increase lending. The much worse news is Treasury’s response that it does not even have the intention of doing so.

GAO recommended that metrics be developed to apply to how individual institutions are using their share of the 250 billion made available to them. Treasury’s extremely disappointing response is to engage in “further discussions on general metrics for evaluating the overall success of the capital purchase program in addressing the purposes of the EESA.

By rejecting the GAO’s recommendation that measurement is needed and substituting a vague promise to “evaluate the overall success of the program,” Treasury is coming very close to telling the institutions that they will be free to use the funds as they wish.

Adding this blatant refusal to enforce any lending obligations on individual intuitions the continued policy of ignoring the clear intent of the EESA to aid in the reduction of foreclosures put the Treasury perilously close to a breach faith with those who responded to the Bush Administration’s request to establish the program. A public hearing on the issues raised by the GAO report is now essential.

Read earlier coverage of the GAO report on The Gavel>>

]]> Tue, 02 Dec 2008 19:36:17 CST This evening, the United States Capitol Christmas tree was lit. The tree is a 78-foot Subalpine Fir coming from Montana’s Bitterroot National Forest, decorated with 5,000 ornaments crafted by people from across Montana. The tree uses energy efficient LED lights and when the holiday season ends, the tree’s mulch will be used on the Capitol grounds.

]]> Tue, 02 Dec 2008 18:14:32 CST This afternoon, the Government Accountability Office (GAO) released the first in a series of Congressionally-mandated oversight reports on the Troubled Asset Relief Program (TARP) established in the economic rescue package. GAO found:

Treasury has yet to address a number of critical issues, including determining how it will ensure that CPP is achieving its intended goals and monitoring compliance with limitations on executive compensation and dividend payments. Moreover, further actions are needed to formalize transition planning efforts and establish an effective management structure and an essential system of internal control. To help ensure the program’s integrity, accountability, and transparency, GAO recommends that Treasury:

work with the bank regulators to establish a systematic means of determining and reporting in a timely manner whether financial institutions’ activities are generally consistent with the purposes of CPP and help ensure an appropriate level of accountability and transparency;

develop a means to ensure that institutions participating in CPP comply with key program requirements (e.g., executive compensation, dividend payments, and the repurchase of stock);

formalize the existing communication strategy to ensure that external stakeholders, including Congress, are informed about the program’s current strategy and activities and understand the rationale for changes in this strategy to avoid information gaps and surprises;

facilitate a smooth transition to the new administration by building on and formalizing ongoing activities, including ensuring that key OFS leadership positions are filled during and after the transition;

expedite OFS’s hiring efforts to ensure that Treasury has the personnel needed to carry out and oversee TARP;

ensure that sufficient personnel are assigned and properly trained to oversee the performance of all contractors, especially for Contracts priced on a time and materials basis, and move toward fixed-price arrangements whenever possible;

continue to develop a comprehensive system of internal control over TARP, including policies, procedures, and guidance that are robust enough to protect taxpayers interests and ensure that the program objectives are being met;

issue final regulations on conflicts of interest quickly and review and renegotiate mitigation plans to enhance specificity and compliance; and

institute a system to effectively manage and monitor the mitigation of conflicts of interest.

Read the summary>>

Read the full report>>

Speaker Pelosi on the GAO report:

The GAO’s discouraging report makes clear that the Treasury Department’s implementation of the TARP is insufficiently transparent and is not accountable to American taxpayers. As part of its flagship program to invest directly in financial institutions, the Treasury Department failed to impose conditions on the use of government funds, which were intended to help ease the credit crunch, undermining the intent of the Emergency Economic Stabilization Act and public confidence.

Congress has repeatedly expressed concerns to the Treasury Department about the need to improve the TARP’s accountability and transparency. The GAO report reaffirms Congress’ view and calls on Treasury to take several critical steps to accomplish this goal, specifically by improving its communication with Congress and the general public.

The lack of any requirement by the Administration on how financial institutions use these capital infusions is in clear contrast to Congress requiring detailed plans for long-term viability from the domestic auto companies. It is difficult to comprehend why the Bush Administration refuses to provide short term emergency auto industry loans through the TARP—when we know bankruptcy is not an option for the automakers or our economy.

We welcome the GAO’s continued monitoring of the Treasury Department’s actions and look forward to the Congressional Oversight Board’s report on TARP implementation on December 10.

Congress also remains concerned that the Administration has failed to implement a foreclosure mitigation plan to help millions of families stay in their homes as required under the financial rescue legislation. Preventing foreclosures will slow the nationwide drop in home values, protect neighborhoods, and is essential to address the root cause of our economic crisis.

]]> Tue, 02 Dec 2008 11:30:56 CST On November 20th, I introduced a bill that would use free market incentives to help the auto industry. H.R. 7298 would offer consumers a $10,000 tax deduction when they purchase a new vehicle with final assembly in the United States.

 

The auto industry has a multitude of issues that need to be sorted out, but one thing is certain—they need to sell cars. This bill provides an incentive for anyone to do just that.

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]]> Mon, 01 Dec 2008 13:41:45 CST This year marks 20 years since the first World AIDS Day was commemorated to raise awareness and move the nations of the world to act.

Although it took far too long, the world is finally rising to the challenge. Since 2002, international HIV/AIDS assistance has increased nearly five-fold. As a result, the number of people in developing countries receiving antiretroviral medications has increased ten times to more than 3 million. Increased access to treatment is already saving lives, with the number of AIDS deaths beginning to decline in 2005 after decades of increases.

Despite this progress, the scope of the challenges ahead is enormous. More than 33 million people are still living with HIV and AIDS, and more than 7,000 new infections occur every day. Among African American women, the disease has become so rampant that it is this group’s leading cause of death between the ages of 25 and 34.

This year’s theme for World AIDS Day, ‘Lead – Empower – Deliver,’ emphasizes the need for global leadership to address these challenges. During the 110th Congress, we have successfully increased funding for global AIDS initiatives by $1.8 billion, bringing total funding to $5 billion, with an additional $500 million increase pending for fiscal year 2009.

This year, Congress reauthorized the President’s Emergency Program for AIDS Relief (PEPFAR), moving relief from the emergency phase to the sustainability phase in fighting AIDS, Tuberculosis, and Malaria by significantly increasing resources for treatment, prevention, and stronger health care delivery systems. This groundbreaking legislation also eliminated the requirement that one-third of the funding be used for abstinence programs, eliminated the travel ban for visitors who are HIV positive, and improved services for women and girls.

We need to match this unprecedented global commitment with a stronger commitment here at home to reducing new HIV infections and increasing access to treatment. Although the 110th Congress enacted large increases for Ryan White care programs in fiscal years 2007 and 2008, with another $100 million increase still pending for fiscal year 2009, funding for the domestic epidemic overall has been woefully inadequate since 2001. More than 1.1 million people are currently living with HIV/AIDS in the United States, with only 55 percent of those in need of antiretroviral treatments receiving these lifesaving medications.

As President-Elect Obama called for during his campaign, a new National AIDS Strategy is needed to use resources more effectively, and to track and improve outcomes focused on fewer new infections, increased access to care, and reduced racial and ethnic disparities. Funding is pending in the fiscal year 2009 Appropriations bill to initiate this effort. Developing this strategy and implementing its vision must be a major priority over the next few years.

As we begin a new era of leadership in the United States, we renew our commitment to working together with all nations to answer today’s call for renewed leadership in the effort to combat, and eventually end, HIV/AIDS.

]]> Wed, 26 Nov 2008 14:14:00 CST Congress recessed late last week and I am back at home in the 17th Congressional District.  Like many Americans, I will have the privilege of celebrating Thanksgiving with my family.  My thoughts and prayers are with those serving in uniform far from home.

As we celebrate this holiday, I am thankful for the honor of serving in Congress.  We all share the hardship and uncertainty of an economy that has taken the worst turn since the Great Depression and the news is filled with the gloom of ‘recession’ and ‘bailout’. 

Even though this is a difficult time, I am optimistic and have hope that the new leadership of President-Elect Obama and a Democratic Majority in both the House and Senate will stop digging and begin to climb out of this hole.   As we speak, The Obama Economic Team is working diligently to embark on a path to economic recovery that fosters both growth and stability.

I know that with your continued help and support we will successfully face the challenges ahead.  The leaders of the Nation are determined and I am excited and honored to be a part.

0 Comments ]]> Wed, 26 Nov 2008 13:42:00 CST Wed, 26 Nov 2008 12:21:31 CST


]]> Wed, 26 Nov 2008 01:00:00 CST Tue, 25 Nov 2008 14:43:35 CST The silver lining in the cloud for congressional Republicans is that when you hit bottom, every day is a good day because you are on your way back up.

 

The combination of history (eight years of an incumbent administration typically yields change), the phenomenon of President-elect Barack Obama and the unfortunate miscommunication by the Bush administration on everything from the war to the financial crisis was simply too much to overcome.

 

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]]> Mon, 24 Nov 2008 14:46:04 CST


]]> Mon, 24 Nov 2008 14:36:31 CST ]]> Fri, 21 Nov 2008 19:45:15 CST Speaker Pelosi and Leader Harry Reid today sent the following letter to the Big Three U.S. auto executives, calling on them to “submit a credible restructuring plan that results in a viable industry, with quality jobs, and economic opportunity for the 21st century while protecting taxpayer investments” by December 2nd:

November 21, 2008

Dear Messrs Wagoner, Mulally, and Nardelli:

We recognize the importance of the domestic automobile industry and are committed to working with you to ensure its viability in the years to come. One in 10 American jobs is related to auto manufacturing; our national security depends on the industry’s technologies and manufacturing capacity; and our competitiveness in a global economy depends on its pursuit of excellence.

As you know, Congress has provided President Bush, the Chairman of the Federal Reserve, and the Treasury Department the authority they need under the Emergency Economic Stabilization Act (EESA) as well as other authorities to provide short-term financial assistance to the auto companies.

Unfortunately, the Bush Administration and the Federal Reserve have thus far declined to use their powers to improve our nation’s financial stability by assisting the auto industry. Notwithstanding existing authorities, this Congress is prepared to consider additional legislation that would give the assistance you seek, provided that you submit a credible restructuring plan that results in a viable industry, with quality jobs, and economic opportunity for the 21st century while protecting taxpayer investments.

In order for Congress to act in a timely manner, this plan must be presented to Congress by December 2nd, specifically to Senate Banking Committee Chairman Christopher Dodd and Financial Services Committee Chairman Barney Frank.

It is critical that you meet this deadline since we have announced we are prepared to come back into session the week of December 8 to consider legislation to assist your industry. We intend to give pertinent agencies within the executive branch, the Government Accountability Office, the Board of Governors of the Federal Reserve, as well as outside experts, the opportunity to comment on your work.

The plan must:

Provide a forthright, documented assessment of the auto companies’ current operating cash position, short-term liquidity needs to continue operations as a going-concern, and how they will meet the financing needs associated with the plan to ensure the companies’ long-term viability as they retool for the future;

Provide varying estimates of the terms of the loan requested with varying assumptions including that of automobile sales at current rates, at slightly improved rates, and at worse rates;

Provide for specific measures designed to ensure transparency and accountability, including regular reporting to, and information-sharing with, any federal government oversight mechanisms established to safeguard taxpayer investments;

Protect taxpayers by granting the most senior status for any government loans provided, ensuring that taxpayers get paid back first;

Assure that taxpayers benefit as corporate conditions improve and shareholder value increases through the provision of warrants or other mechanisms;

Bar the payment of dividends and excessive executive compensation, including bonuses and golden parachutes by companies receiving taxpayer assistance;

Include proposals to address the payment of health care and pension obligations;

Demonstrate the auto companies’ ability to achieve the fuel efficiency requirements set forth in the Energy Independence and Security Act of 2007, and become a long-term global leader in the production of energy-efficient advanced technology vehicles; and

Require that government loans be immediately callable if long-term plan benchmarks are not met.

The auto companies’ shareholders, business partners, and prospective benefactors—the American people—deserve to see a plan that is accountable to taxpayers and that is viable for the long-term. In return for their additional burden, taxpayers also deserve to see top automobile executives making significant sacrifices and major changes to their way of doing business.

We look forward to working with you to ensure a viable American automobile manufacturing sector for decades to come. If we are successful, we can ensure a brighter future for the automobile industry, our nation, and our planet.

Thank you for your prompt attention to this matter.

Sincerely,

Nancy Pelosi
Speaker of the House

Harry Reid
Senate Majority Leader

]]> Fri, 21 Nov 2008 13:54:39 CST From Rep. Diana DeGette:

WASHINGTON – As the Bush Administration takes action challenging reproductive rights in this country in its remaining days, U.S. Reps. Diana DeGette (D-CO) and Louise Slaughter (D-NY), co-chairs of the Congressional Pro-Choice Caucus, introduced legislation that would prohibit a dangerous proposed Department of Health and Human Services (HHS) regulation from being implemented. The measure was cosponsored by U.S. Reps. Tammy Baldwin (D-WI), Lois Capps (D-CA), Jerrold Nadler (D-NY), and Jan Schakowsky (D-IL). The proposed HHS rule would require any health care entity that receives federal financing to certify in writing that none of its employees are required to assist in any way with medical services they find objectionable. The legislation introduced today would keep HHS from moving forward with this rule.

“The Bush Administration’s 11th hour attempt to restrict access to reproductive health care is not only abusive, but also threatens everyone’s access to other vital health care services,” said Rep. DeGette, Vice Chair of the Committee on Energy and Commerce. “This legislation sends a clear message that this is the wrong direction for health care policy in America. The Bush Administration continues to pursue its extreme ideology over sound public health care policies even as it enters its final days.”

“Eight continuous years of trouncing on women’s reproductive rights and playing politics with science has obviously not been enough for this Administration,” said Rep. Slaughter, Chairwoman of the House Committee on Rules. “As its parting gift to women across this country, the Administration has proposed a sweeping rule that goes beyond a woman’s right to choose, beyond a woman’s right to contraception and puts everyone’s access to health care at risk. Even as the EEOC, including Bush appointees, strenuously objects to this rule, the Administration’s unconscionable actions really show you just how out of touch they are with women and their families. In the 111th Congress, I hope we can focus on reducing the need for abortions through my bill, the Prevention First Act, which will empower women and expand access to affordable contraception.”

DeGette, Slaughter, and 124 other Members of Congress sent a letter to the Department of Health and Human Services (HHS) in late September opposing the proposed rule, which would significantly undermine patients’ access to vital health services and information. The letter argued that the “ill-conceived and unnecessary proposed rule puts politics and ideology before quality health care.” Senators Hillary Clinton (D-NY) and Patty Murray (D-WA) introduced the Senate companion bill earlier today.

The Speaker commented on the draft rule in July, saying:

If the Administration goes through with this draft proposal, it will launch a dangerous assault on women’s health.

The majority of Americans oppose this out of touch position that redefines contraception as abortion and represents a sustained pattern of the Bush Administration to reject medical and sound science in favor of a misguided ideology that has no place in our government.

I urge the President to reject this policy and join with Democrats to focus on preventing unintended pregnancies and reducing the need for abortion through increasing access to family planning services and access to affordable birth control.

]]> Fri, 21 Nov 2008 11:53:16 CST Mike discusses the post-election session week and the auto-bailout.

]]> Fri, 21 Nov 2008 11:14:54 CST The questions by the members at the hearing were very substantive. I think the questions and the answers to the questions clarify quite a few misconceptions.  I think, as much as anything, instability in the financial system was undermining the economy. It wasn’t as evident to Main Street that the economy would have weakened substantially if there had not been an intervention. I thought Secretary Paulson did a good job of saying that. Stability has returned to the financial system and that should begin to stabilize the economy, which is very good news. Obviously there is a lot of concern about the foreclosures and the various programs.

 

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]]> Thu, 20 Nov 2008 20:12:00 CST The U.S. Senate passed legislation today to extend the amount of time out of work Americans can receive unemployment insurance benefits. The House overwhelmingly passed the bill in October; the measure now goes to the president for his signature. The Unemployment Compensation Extension Act of 2008 (H.R.6867) provides workers with an additional seven weeks of unemployment benefits for workers who have exhausted their regular unemployment and an additional 13 weeks of benefits for workers in states with the highest unemployment.

In light of today’s devastating economic news that new jobless claims rose to their highest level in more than 16 years, the Senate did the right thing for millions of out-of-work Americans. Unemployment benefits for more than a million Americans are set to expire by the end of the year. This extension will provide much-needed help for these families who still have to put food on the table, pay their home and heating bills, and look for a job.

With our nation’s financial wounds deepening by the day, we can’t allow the rug to get pulled out from under workers looking for a new job. Extending unemployment benefits is a no-brainer – it’s one of the most effective things we can do to help workers and stimulate our economy. With the holiday season fast approaching, it’s time for the President to give workers and families a helping hand by immediately signing this bill.

]]> Thu, 20 Nov 2008 19:38:00 CST Today, the Democratic Caucus officially re-elected Rep. George Miller to chair the House Education and Labor Committee for the 111th Congress.

It is an honor and a privilege to continue to chair the Education and Labor Committee in the next Congress, and I thank my colleagues for their support.

If anything, this historic election reminded us that Americans from all regions, backgrounds and political stripes are united in our shared hopes and aspirations: A quality, affordable education for our children; a good-paying job with decent benefits; and a secure retirement after a lifetime of hard work. In a nation as great as ours, these dreams can – and must – be achieved.

I look forward to working with all members of this committee, the next Congress, and the new administration on a Main Street recovery plan that will revitalize our economy, and toward our larger goal of rebuilding and strengthening America’s middle class. Like President-Elect Obama, I’m confident we can reach this goal by working in a bipartisan way that transcends the politics of the past, and by making sure that our government is open, accountable and engages the public. Moving forward, our committee will also build on our efforts to use innovative strategies to make sure that the voices of Americans around the country are heard here in Washington.

I also know that no one is more excited about the opportunities before us than Senator Ted Kennedy. No one has fought harder for our children, workers and families than Ted, and no one could ask for a better partner in these challenging times. I am thrilled that he has returned to the Senate, and look forward to continuing to work closely with him on the important tasks that lie ahead.

More information on Chairman Miller's priorities for the committee in the 111th Congress »

]]> Thu, 20 Nov 2008 18:58:50 CST Today the Senate passed H.R. 6867, the Unemployment Compensation Extension Act, which the House passed on October 3rd. The bill provides an additional 7 weeks of extended unemployment benefits for workers who have exhausted their unemployment benefits (providing 20 total weeks of extended benefits when combined with the 13 weeks provided earlier this year). The bill now goes to President Bush, who is expected to sign into law this week.

Speaker Pelosi on signing the bill:

With more Americans filing jobless claims than at any time since the 1992, the Senate’s passage of the House’s unemployment insurance extension legislation will help speed relief to more than 2 million workers who continue to search for new jobs in these difficult economic times. No American who is ready, willing and able to work and provide for their family should find themselves cut off from this critical assistance. I look forward to the President signing this legislation into law this week.

While extending unemployment benefits is essential, Congress and the President must continue to work together to help Americans weather this economic storm and strengthen our economy for the long term. We stand ready to work with President Bush and Senate Republicans to enact House-passed legislation that will create new jobs by investing in infrastructure, help states avoid deep cuts to critical services, and provide nutrition assistance to families in need.

Rep. George Miller, Chairman of the House Education and Labor Committee:

In light of today’s devastating economic news that new jobless claims rose to their highest level in more than 16 years, the Senate did the right thing for millions of out-of-work Americans. Unemployment benefits for more than a million Americans are set to expire by the end of the year. This extension will provide much-needed help for these families who still have to put food on the table, pay their home and heating bills, and look for a job.

With our nation’s financial wounds deepening by the day, we can’t allow the rug to get pulled out from under workers looking for a new job. Extending unemployment benefits is a no-brainer – it’s one of the most effective things we can do to help workers and stimulate our economy. With the holiday season fast approaching, it’s time for the President to give workers and families a helping hand by immediately signing this bill.

]]> Thu, 20 Nov 2008 17:40:07 CST Financial Services Committee Chairman Barney Frank sent a letter today to Treasury Secretary Paulson, following up on issues raised at Tuesday’s House Financial Services Committee oversight hearing on the Troubled Assets Relief Program (TARP). In the letter, Chairman Frank continues his call for Secretary Paulson to immediately use funds authorized by TARP legislation to help stem foreclosures.

The full text of the letter:

The Honorable Henry M. Paulson. Jr.
Secretary
Department of the Treasury
Washington, DC 20220

Dear Mr. Secretary:

I write to follow up on the November 18 House Financial Services Committee hearing on the Troubled Assets Relief Program, and to urge you in the strongest possible terms to use TARP funds immediately to support significant steps that can help stem the tidal wave of foreclosures threatening the stability of our financial system and our economy. As a first step, I applaud the regulatory changes in FHA’s Hope for Homeowners program that you and the other members of the Hope for Homeowners Board approved November 19. These changes, authorized by Congress under the TARP legislation, should help expand use of the program.

As I noted in the hearing, however, the TARP statute unambiguously gives you the authority and a mandate to take much more aggressive action on foreclosures. While I support the use of TARP funds to stabilize the financial system through bank capital injections, the root causes of this crisis will remain unaddressed until TARP is deployed aggressively to mitigate the estimated 4 to 5 million foreclosures that will otherwise occur over the next two years. The Administration continues to emphasize HopeNow and other private initiatives, but they are simply not an adequate solution going forward.

At least four programs or proposals already exist that you could fund and operate through TARP to provide significant foreclosure relief:

FDIC Chairman Bair has proposed a broad program to modify and provide credit guarantees for troubled mortgages that could prevent an estimated 1.5 million foreclosures in the next year alone. Chairman Bair believes, as do I, that the authority already exists to run such a program through TARP under Section 109 of the legislation.

At the hearing economist Martin Feldstein proposed a “mortgage replacement program” allowing the government to substitute new loans for portions of existing troubled mortgages. These new government loans would replace 20% of the borrower’s existing loan, with the remaining private mortgage (now for 80% of the original amount) being “full recourse,” giving the creditor access to the borrower’s assets beyond the security value of the home itself. This will lower borrowers’ monthly payments and provide protection against falling into negative-equity positions that encourage default and foreclosure.

The recently approved changes to the FHA Hope for Homeowners program, as noted above, will help enhance participation. However, Treasury should augment these changes by using TARP funds (under the authority in Section 109) to reduce the high level of upfront and annual fees required under Hope for Homeowners loans. These high fees are depressing program use, and using TARP funds to pay them down could significantly increase the number of foreclosures averted.

TARP also mandates that Treasury implement a plan to maximize modifications to mortgages that it acquires. Because mortgages in danger of default clearly qualify as “troubled assets,” I urge you to begin buying whole loans on a large scale for the specific purpose of modifying those loans and keeping the borrowers in their homes.

We can not afford to miss this opportunity to act. Please let me know if my staff or I can be of help in getting these initiatives up and running as quickly as possible.

Sincerely,

BARNEY FRANK
Chairman

]]> Thu, 20 Nov 2008 16:27:45 CST Featured in tomorrow’s Washington Times:

House Republican Leader John A. Boehner said Democrats’ use of secret ballots to chose its leadership was ironic because the party wants to nix workers’ rights to a secret voting in deciding whether to unionize.

“The secret ballot election is a cornerstone of our American democracy,” Mr. Boehner, Ohio Republican, said Thursday. “If it is good enough for House Democrats to rely on during today’s high-stakes vote, shouldn’t it be good enough for millions of American workers across America who value their workplace privacy?”

He vowed Republicans would stand firmly against the Democrat’s “card-check” legislation - dubbed the Employee Free Choice Act or EFCA. It would allow organizers to unionize a workplace by gathering enough singed cards rather than the current process of employees deciding by secret ballots…

…Enacting the card-check law is a top priority for organized labor and the unions are confident it will be passed by the Democrat-led Congress and signed by President-elect Barack Obama, a top AFL-CIO lobbyist told The Washington Times this week.

“I have no doubt it will pass and will be singed,” AFL-CIO government-affairs director William Samuel said in an exclusive interview.

Mr. Obama and House Democratic leaders supported the bill during House and Senate votes last year.  Critics of the card check process say it leaves workers vulnerable to coercion and intimidation from either the management or the union organizers.

Mr. Boehner highlighted House Democrats’ use of a secret ballot Wednesday in deciding a bitter showdown between two Democratic titans - Rep. Henry A. Waxman of California and Rep. John D. Dingell of Michigan - over control of the Energy and Commerce Committee.

House Democratic Caucus voted 137 to 122 to install the fiercely liberal Mr. Waxman and outs Mr. Dingell, whose close ties to U.S. automakers and the utility industry had put him as odds with the environmental agenda of Democratic leaders, including Mrs. Pelosi.

Mr. Boehner noted that Rep. Louise Slaughter, New York Democrat, earlier in the week expressed relief her vote in the Dingell-Waxman conflict would not be public. “It’s a secret ballot, thank the Lord,” she told Congressional Quarterly.

“Killing secret ballot rights in the workplace may be a priority for the special interests that have placed Democrats in charge of Washington, but it is not in the best interest of workers or our democratic system,” Mr. Boehner said.

]]> Thu, 20 Nov 2008 16:18:24 CST Speaker Pelosi, Leader Harry Reid, and House and Senate Democratic leaders held a news conference this afternoon in the Capitol to discuss aid to the domestic auto industry.

The Associated Press reports:

Dems demand business plan from Big Three

Democratic leaders in Congress sidetracked legislation to bail out the auto industry Thursday and demanded the Big Three develop a plan assuring the money would make them economically viable.

“Until they show us the plan, we cannot show them the money,” Speaker Nancy Pelosi, D-Calif., said at a hastily called news conference in the Capitol.

She and Senate Majority Leader Harry Reid, D-Nev., said Congress would return to work in early December to vote on legislation if the General Motors Corp., Ford Motor Co. and Chrysler LLC produce an acceptable plan.

The Speaker’s opening remarks:

Thank you very much, Mr. Leader. I wish to associate myself with your remarks because I think that you have clearly laid out what the challenge is to our economy, to the auto industry and to Congress as we go forth.

It is all about accountability and about viability. Until we can see a plan where the auto industry is held accountable and a plan for viability on how they go into the future, until they show us the plan, we cannot show them the money.

And that is really where we are with this. I want to join the Leader in saluting those who have worked so hard on this, and add to that our Michigan delegation in the House of Representatives.

The auto industry is very important to our country. It is essential, its survival is essential, to maintaining our industrial and manufacturing base. That industrial base is essential to our national security. So, for reasons of our national security, for reasons that relate to the health of our financial community, and for reasons that relate to the needs of the workers who will be affected by this, it is essential that we see some restructuring, some path to viability, from the auto industry.

The Leader addressed what that meant in a timetable. I know Leader Hoyer will adjust that as well so I won’t go into that. But again, we reject those who are advocating bankruptcy for the industry. We reject that. But we do want to work together, and I don’t think we saw very much in the hearings of the last few days that gave us the confidence that we can act upon it legislatively.

Hopefully, in another week or two, we can see a plan that can take us viably into the future with accountability to the American people before we spend another dollar of their tax dollars. Thank you, Mr. Leader.

Leader Hoyer:

As we said this afternoon, Democrats fully understand the importance of America’s automotive industry to our entire economy, and to the 3 million workers who depend on it for employment. We are working with leaders from both parties, and with representatives of the automakers and their employees, in an effort to protect this vital industry from collapse. However, we will not commit billions of taxpayer dollars to this effort without first knowing how the automakers intend to use it to ensure their long-term viability. Our taxpayers and our economy would suffer if we found ourselves back at this point in the near future, with $25 billion gone and the automakers no closer to health. A plan of this size demands detailed accountability to the public.

That is why I, along with the Democratic leadership in Congress, am insisting that the automakers show the American people exactly how they would spend these loans. We need to know that America’s car companies have a plan to remain competitive and viable in the 21st century. Congress has asked for that plan by December 2nd, and both the House and the Senate are prepared to return to consider legislation by December 8th. That time will help us build consensus in Congress and instill public confidence in the car companies’ future. And by then, Congress will have more of the information it needs to determine whether loans to the auto industry are in the public interest. That is the diligence that any lender should exercise—especially when taxpayer money is at stake.

Whip Clyburn:

It’s clear that the auto industry, America’s industrial base and the source of millions of jobs directly and indirectly across the country, is in dire straits. But rather than blindly throwing money at the problem, we’re asking for a plan for the future. American industry has always proven its mettle, survived difficulty and thrived through innovation and improvement. At a moment when the auto industry is asking the American taxpayer to dig deep, it must also dig deep as a business and demonstrate a path forward to long-term success. The auto industry must be held accountable and present a plan for future viability before the Congress can determine how best to provide assistance. Bankruptcy is not a good option; however, accountability and viability are essential to stabilizing the auto industry and saving millions of American jobs.

]]> Thu, 20 Nov 2008 12:22:07 CST With more Americans filing for jobless claims than at any time since the 1992 recession, Congress and the President must act to extend unemployment benefits for workers. I am pleased that President Bush has today joined the New Direction Congress in supporting this critical step.

The depth of the nation’s economic problems demands additional action, which is why the House passed strong economic recovery and job creation legislation in September that creates jobs by investing in infrastructure, extends unemployment benefits, helps states avoid deep cuts to critical services, and provides nutrition assistance to struggling families. President Bush and Senate Republicans should work with us to help make this legislation law.

]]> Wed, 19 Nov 2008 19:29:51 CST Today, the House Financial Services Committee held a legislative hearing on extending the Department of Treasury’s Troubled Asset Relief Program (TARP) to the U.S. auto industry. The draft legislation will extend the recently passed TARP program to help the financial stability of the American car industry.

Watch the archived webcast>>

Read prepared testimony>>

Chairman Barney Frank:

Rep. Frank: “We haven’t declared that no one can go bankrupt. We have a criterion. Is this of a magnitude that it will threaten the entire economy and particularly at a time of great vulnerability for the economy? If we were at four percent unemployment, as we were in the Clinton administration, if things were going well, this would be a different thing to contemplate. We have an economy already staggering both because of our credit crisis and problems in the real economy. Adding to this enormous disruption at this point would be an awful idea.”

Professor Jeffrey D. Sachs:

Sachs: “Please do this before we turn a recession into a depression. That’s my request. You know, it’s for all of us. There’s nobody that will not be affected. And this idea, let markets work when there are no markets, is the idea of how Lehman Brothers triggered the biggest worldwide crisis in a generation. Don’t do it again with this industry. Two in a row, we’re really into depression.”

Chairman Frank and Professor Jeffrey D. Sachs on the Bush Administration proposal to use Sec. 136 funds:

Sachs: “First, before getting to the specifics of Section 136, we should not ease the conditions. We should see this as an opportunity to enforce the conditions. I actually am more optimistic than the three CEOs that we heard, that they could be accelerated even more, because when you consider that the Chevy Volt promises to be a leapfrog technology, in fact, because we’ll go from hybrid to plug-in hybrid, we’re on the verge, in my opinion, of getting back to U.S. technological leadership. GM also has invested more than $1 billion in hydrogen fuel cells. And Chrysler, I think very impressively, is looking at extended-range electric vehicles. Don’t ease the conditions, that’s for sure.”

Rep. Mel Watt:

Rep. Watt: “We are in much the same position that we were with the original bailout. We are very much between a rock and a hard place and the hard place is coming from the public out there who has a great resistance to bailing out anybody else, as they did in the original bailout.”

Rep. Maxine Waters:

Rep. Waters: “I’m still traumatized by the hearing that we had yesterday, and Secretary Paulson’s denial of not paying attention to the loan modifications that we thought we would be getting as a result of the $700 billion bailout bill that we worked so hard to pass. So, on the heels of that, we have here today the automobile companies, and asking for their share of support from the Congress of the United States - from the people, to make sure that they’re able to maintain their businesses.”

]]> Wed, 19 Nov 2008 18:33:32 CST Today, Congresswoman Marcia Fudge was sworn in on the House floor to fill the 11th district seat of Ohio vacated by the passing of Congresswoman Stephanie Tubbs Jones:

“I look forward to working with you, because there is much work to be done, and I am certainly up to the task. I am a person that you can count on, I will work hard, because I know what my job is. My job is to serve the people who put me here. I know that my job is to do the most for those who have the least. I will work hard, because I have promises to keep. I have made promises not only to myself and the people of the eleventh district, but to my departed friend. Count on me, because I do have promises to keep.”

]]> Wed, 19 Nov 2008 17:36:34 CST The Chairman of the Select Committee on Energy Independence and Global Warming, Ed Markey, responded to President-Elect Obama’s YouTube address on climate change policy via You Tube:

Hi, I am Congressman Ed Markey, Chairman of the Select Committee on Energy Independence and Global Warming.

I just wanted to congratulate President Elect Barack Obama on his speech today which laid out a new direction for the United States in the battle to fight Global Warming.

After 8 years of inaction from the Bush Administration, it’s a breath of fresh air to hear that an Obama White House understands the clean energy steps that must be taken to lift America out of economic turmoil are the same steps we must take to fight the climate crisis.

Investing in clean energy will create new green jobs, putting Americans back to work and breaking our dependence on oil and other fossil fuels.

President-Elect Obama also understands the potential clean energy technology brings. President-Elect Obama used YouTube to deliver his important climate message today. In 1995, not a single home in America had broadband access. Today, the next President of the United States was able to reach millions of people around the world using high-speed internet connections. . .and even some on mobile devices!

If, in just a decade’s time, we can successfully engineer an Information Technology Revolution, we can also have a Clean Energy Revolution.

Again, I want thank the President-Elect for his commitment to fighting climate change and I look forward to continuing to work with Congress on a green economic recovery.

]]> Wed, 19 Nov 2008 17:25:00 CST Congress has reconvened for a brief moment, with the focus being the current crisis in the American auto industry. Before I explain my stance, I’d like to congratulate some of my colleagues. Today, we will be swearing in Congresswoman-elect Marcia Fudge (OH-11), who will occupy the seat vacated by my dear friend, the late Congresswoman Stephanie Tubbs Jones. I look forward to working with Marcia in the 111th Congress to move Ohio forward.
In addition, I would like to congratulate the newly elected leadership for the Democratic Majority:

Speaker of the House: Nancy Pelosi of California
Majority Leader: Steny Hoyer of Maryland
Majority Whip: James E. Clyburn of South Carolina
Democratic Caucus Chairman: John B. Larson of Connecticut
Democratic Caucus Vice Chairman: Xavier Becerra of California
Assistant to the Speaker and Chair of the Democratic Congressional Campaign Committee: Chris Van Hollen of Maryland

Last week, I authored a letter to Speaker Pelosi and Majority Leader Hoyer expressing the urgency to help American automakers. We need to ensure stability and stimulate growth in our domestic auto industry. With 5 million American jobs at stake, we can’t afford to look the other way. In my district, the local GM plant in Lordstown is looking at laying off 1,060 employees.  Government intervention will provide an opportunity for these automakers to develop advanced fuel efficient cars and renew American interest in buying domestic.

I will keep you posted as this session continues…

4 Comments ]]> Wed, 19 Nov 2008 16:37:54 CST Today, House Republicans elected the following leaders for the 111th Congress:

•    Republican Leader:  Rep. John Boehner (R-OH)
•    Republican Whip:  Rep. Eric Cantor (R-VA)
•    Conference Chairman:  Rep. Mike Pence (R-IN)
•    Policy Committee Chairman:  Rep. Thaddeus McCotter (R-MI)
•    Conference Vice-Chair:  Rep. Cathy McMorris Rodgers (R-WA)
•    Conference Secretary:  Rep. John Carter (R-TX)
•    NRCC Chairman:  Rep. Pete Sessions (R-TX)

More images can be found on Leader Boehner’s Flickr photostream

]]> Wed, 19 Nov 2008 12:14:09 CST Today, the House Financial Services Committee is holding a legislative hearing on extending the Department of Treasury’s Troubled Asset Relief Program (TARP) to the U.S. auto industry. The draft legislation will extend the recently passed TARP program to help the financial stability of the American car industry.

Watch the live webcast>>

Witness List & Prepared Testimony:

Panel 1

Members of Congress

Panel 2

Mr. G. Richard Wagoner, Jr., Chairman and Chief Executive Officer, General Motors Corporation

Mr. Robert Nardelli, Chief Executive Officer, Chrysler, LLC.

Mr. Alan Mulally, President and Chief Executive Officer, Ford Motor Company

Mr. Ron Gettelfinger, President, United Auto Workers

Panel 3

Mrs. Annette Sykora, Chairman, National Automobile Dealers Association

Mr. James S. McElya, Chairman and Chief Executive Officer, Cooper-Standard Automotive, Inc.

Professor Jeffrey D. Sachs, Director, The Earth Institute; Quetelet Professor of Sustainable Development and Professor of Health Policy and Management, Columbia University

Dr. Matthew J. Slaughter, Professor of International Economics, Tuck School of Business, Dartmouth College

]]> Tue, 18 Nov 2008 22:20:52 CST Today the Financial Services Committee held and oversight hearing on the implementation of the Emergency Economic Stabilization Act of 2008. Committee Members questioned Treasury Secretary Paulson, Federal Reserve Chairman Bernanke, and FDIC Chairwoman Bair about the implementation of the TARP program and the lack of addressing the foreclosure crisis. As Chairman Frank said in his opening remarks, “the fundamental policy issue is our disappointment that funds are not being used out of the 700 billion to supplement mortgage foreclosure reduction…the negative effect of this cascade of foreclosures goes far beyond the individuals who lose their homes. It has to do with neighborhood deterioration. It has to do with municipal inability to make their governments work. And it impacts, obviously, the macro economy…it is essential that we do something to use some of the TARP funds for the diminution of the rate of mortgage foreclosures.”

Chairman Frank reads a portion of the Emergency Economic Stabilization Act to Secretary Paulson, reminding the Secretary of the language giving him the authority to take action to reduce foreclosures:

Frank: “No. I’m sorry, Mr. Secretary. Those are not substitutable because I will tell you this…It is nobody’s view that we have been as successful as we need to be for the sake of the economy in reducing foreclosures. We have a very large pot that was intended to be part of that effort that’s going untapped.”

Rep. Maxine Waters:

Waters: “So the fact that you, Mr. Paulson, took it upon yourself to absolutely ignore the authority and the direction that this Congress had given you just amazes me. I just could not believe it when I heard that somehow you had abandoned the whole foreclosure mitigation effort…I’m disappointed that you have not utilized the authority and you have just divorced yourself from dealing with that.”

Rep. Nydia Velazquez:

Velazquez: “It’s just not enough to say to the banks here is the money. And by the way, I trust you, because they are not lending. They’re not lending to small businesses. They are not working on loan modification strategy. You just told Mr. Frank here that you are examining strategy to mitigate foreclosures. You don’t have the strategy to mitigate foreclosure. You are examining.”

Rep. Mel Watt:

Watt: “Unless we are provided the kind of information and assurance that people are looking at it, and looking at it with integrity, we can’t reassure the public.” Paulson: “I would just say with that, this is…” Watt: “That’s not a question, Mr. Paulson.”

Rep. Carolyn Maloney:

Maloney: “Today’s Wall Street Journal talks about insurance companies that are buying up banks just to get access to the TARP money. And we then read many articles that banks are using TARP monies for buying other banks. So we’re basically funding mergers and acquisitions, not lending. So my basic question is why shouldn’t we be giving TARP money out based on the activity it funds?”

Watch the archived webcast>>

Read prepared testimony>>

]]> Tue, 18 Nov 2008 16:20:53 CST Speaker Pelosi announced today the new Majority Leadership team for the 111th Congress, elected today by members of the Democratic Caucus:

Speaker of the House: Nancy Pelosi of California

Majority Leader: Steny Hoyer of Maryland

Majority Whip: James E. Clyburn of South Carolina

Democratic Caucus Chairman: John B. Larson of Connecticut

Democratic Caucus Vice Chairman: Xavier Becerra of California

Assistant to the Speaker and Chair of the Democratic Congressional Campaign Committee: Chris Van Hollen of Maryland

Leadership will take office on the first day of the new Congress, January 6, 2009.

Speaker Pelosi said: “I look forward to working with this leadership team to build on our accomplishments in the 110th Congress to take America in a New Direction. We are focused on addressing the challenges facing our nation and will do so with a commitment to bipartisanship, civility, and fiscal responsibility.”

Said Majority Leader Hoyer: “With the election of Barack Obama as our next President, we have truly lived up to the promise that in America there is opportunity for all. But he will take office at the most challenging time in our history since Franklin Delano Roosevelt was elected, at a time when our people are hurting and fearful. Democrats in Congress will reach across the aisle, across chambers and down Pennsylvania Avenue to work together on the people’s agenda – to bring change to our great nation. I thank my colleagues for supporting me once again as Majority Leader, and I look forward to working with them in the next Congress.”

Said Majority Whip Clyburn: “I am honored to receive the continued support of my Democratic Colleagues. Our nation faces great challenges ahead and I look forward to working with President Obama, and leaders in the House and Senate to put our country back on track and bring positive change to the American people.”

Chairman Larson said: “Our Caucus faces a rendezvous with reality – the harsh reality that Americans struggle with every day. That is home foreclosures, job loss, and the soaring costs of health care, energy and education. But we will not shrink from these challenges. We embrace them and with the transformational presidency of Barack Obama, we will bring about the change America needs.”

Said Vice Chairman Becerra: “I am honored to have received a vote of confidence from my colleagues to serve as Vice Chairman of the Democratic Caucus, working with our leadership team led by Speaker Pelosi. Now it’s time to produce results that each and every one of us knows the American people are expecting of us. With renewed Democratic leadership in Congress and a new partner in the White House I am confident that we can all work together to take our country in a New Direction.”

Assistant to the Speaker Van Hollen said: “I am looking forward to working with the Speaker and our entire leadership team as we work with President-elect Obama to enact an agenda for change. The American people want us to work together to move the country in a new direction. As we embark on this challenging legislative and political cycle, I believe more than ever that good policy makes for good politics.”

Pelosi also announced that the Democratic Caucus approved her nominations of Congressman John Spratt of South Carolina to serve as Chair of the Budget Committee, Congresswoman Louise Slaughter of New York to serve as Chair of the Rules Committee.

Pelosi named the Co-Chairs and Vice Chairs of the Democratic Steering and Policy Committee:

Co-Chair of the Steering and Policy Committee: Congressman George Miller of California;

Co-Chair of the Steering and Policy Committee: Congresswoman Rosa DeLauro of Connecticut;

Vice Chair of the Steering and Policy Committee: Congressman Marion Berry of Arkansas;

Vice Chair of the Steering and Policy Committee: Congresswoman Hilda Solis of California;

Chair of Organization, Study, and Review: Congressman Michael Capuano of Massachusetts.

The Steering Committee includes members of the elected leadership, the Chief Deputy Whips, and Chairs of the five exclusive committees and the Chair of the Budget Committee.

]]> Tue, 18 Nov 2008 16:02:12 CST This disturbing debate marks yet another chapter in what has become the troubling mark of this Congress.  The regularity and scope of these massive bailouts should astound any taxpayer, yet Washington continues down the road to federal intervention and ever-more public handouts to private industries.

 

While I am certain we have long since passed it, at some point a line must be drawn.  We can no longer ask taxpayers to postpone their own prosperity so that select businesses can maintain the costly status quo.  Printing billion dollar sums of cash each time an industry faces turmoil is not an economic solution; it is a moral hazard.

 

read more

]]> Tue, 18 Nov 2008 11:27:28 CST This morning, the Financial Services Committee is holding a hearing on the “Oversight of Implementation of the Emergency Economic Stabilization Act of 2008 and of Government Lending and Insurance Facilities; Impact on Economy and Credit Availability.”

Read prepared testimony:

Panel 1

The Honorable Henry M. Paulson, Jr., Secretary, U.S. Department of the Treasury

The Honorable Ben S. Bernanke, Chairman, Board of Governors of the Federal Reserve System

The Honorable Sheila C. Bair, Chairman, Federal Deposit Insurance Corporation 
 

Panel 2

The Honorable Steve Bartlett, President and Chief Executive Officer, Financial Services Roundtable

Mr. Edward L. Yingling, President and Chief Executive Officer, American Bankers Association

Ms. Cynthia Blankenship, Vice Chairman and Chief Operating Officer, Bank of the West on behalf of The Independent Community Bankers of America

The Honorable D. Cameron Findlay, Executive Vice President and General Counsel, Aon Corporation on behalf of The Council of Insurance Agents & Brokers

Panel 3

Dr. Alan S. Blinder, Gordon S. Rentschler Memorial Professor of Economics and Co-Director of the Center for Economic Policy Studies, Princeton University

Dr. Martin S. Feldstein, George F. Baker Professor of Economics, Harvard University and President Emeritus, National Bureau of Economic Research, Inc.

Watch the hearing live>>

]]> Tue, 18 Nov 2008 11:27:28 CST This morning, the Financial Services Committee is holding a hearing on the “Oversight of Implementation of the Emergency Economic Stabilization Act of 2008 and of Government Lending and Insurance Facilities; Impact on Economy and Credit Availability.”

Read prepared testimony:

Panel 1

The Honorable Henry M. Paulson, Jr., Secretary, U.S. Department of the Treasury

The Honorable Ben S. Bernanke, Chairman, Board of Governors of the Federal Reserve System

The Honorable Sheila C. Bair, Chairman, Federal Deposit Insurance Corporation 
 

Panel 2

The Honorable Steve Bartlett, President and Chief Executive Officer, Financial Services Roundtable

Mr. Edward L. Yingling, President and Chief Executive Officer, American Bankers Association

Ms. Cynthia Blankenship, Vice Chairman and Chief Operating Officer, Bank of the West on behalf of The Independent Community Bankers of America

The Honorable D. Cameron Findlay, Executive Vice President and General Counsel, Aon Corporation on behalf of The Council of Insurance Agents & Brokers

Panel 3

Dr. Alan S. Blinder, Gordon S. Rentschler Memorial Professor of Economics and Co-Director of the Center for Economic Policy Studies, Princeton University

Dr. Martin S. Feldstein, George F. Baker Professor of Economics, Harvard University and President Emeritus, National Bureau of Economic Research, Inc.

Watch the hearing live>>

]]> Mon, 17 Nov 2008 21:12:40 CST From the House Financial Services Committee:

House Auto Legislation Will Protect American Jobs While Demanding Long-Term Restructuring of Auto Industry for Viability and Energy Independence

Washington, D.C. — Led by House Financial Services Committee Chairman Barney Frank, House Democratic leaders today announced comprehensive legislation that will help the struggling U.S. auto industry in the short term, while protecting millions of American jobs and taxpayers. The $25 billion in bridge loans, issued under the recently enacted Troubled Asset Relief Program (TARP), are intended to help the struggling automakers survive while they prepare plans to restructure their companies to build more competitive, fuel-efficient, and technologically-advanced vehicles.

In addition, the legislation insists on taxpayer protections such as limits to executive compensation, including a ban on so-called “golden parachute” payments, a prohibition on dividend payments over the life of the loans, rigorous independent oversight, and provisions for the government taking warrants and allowing the taxpayer to profit in any upside of the restructuring.

One in 10 American jobs is linked to the auto industry. GM, Ford and Chrysler support about 5 million American jobs, including auto parts manufacturers and auto dealers, across all 50 states. An estimated 3 million jobs would be lost in the first year if the American automakers collapsed—nearly three times the jobs lost economy-wide this year. In addition, more than 1 million American workers and retirees are directly employed or supported by the major automakers, with 2 million Americans getting health care benefits through the auto industry.

“We have chosen the route of a carefully drafted bill because we think it essential that loans be linked to significant progress in the ability of the companies to eventually market energy efficient cars with broad public appeal,” said Chairman Frank. “We specifically reject the notion that removing environmental and efficiency requirements that accompany the section 136 loans because simply spending more money on existing practices cannot be justified.”

For U.S. automakers who wish to participate in this program, the House Democratic Leaders’ legislation insists on specific measures to qualify for emergency loans:

Short-term Operating Plan – The automaker must submit a short-term operating plan that describes the intended use of the loans, including the commitment of resources to develop a long-term restructuring plan and repayment of the loan to taxpayers with interest.

Long-Term Restructuring Plan – By March 31, 2009, loan recipients must submit to Treasury an acceptable restructuring plan for long-term viability and international competitiveness, including meeting enhanced fuel efficiency standards and for advanced technology vehicle manufacturing, and restructuring of existing debt.

Executive Compensation and Corporate Governance – All executive compensation restrictions from TARP apply to loan recipients for the duration of the loan plus the following additional restrictions:

• No bonuses to employees making more than $200,000 (which Treasury will adjust for inflation).
• No golden parachutes under any circumstances.
• No compensation plan that could encourage manipulation of reported earnings to enhance compensation.

Warrants – Treasury must obtain warrants from each loan recipient (or economic equivalent in the case of a privately held firm) equal to 20 percent of the loan or such greater percentage as may be determined by Treasury in consultation with the Oversight Board.

Dividends – Recipients may not pay any dividends for duration of the loan.

Acceleration of Repayment for Failure to Comply – If a company receiving a loan fails to prepare an acceptable restructuring plan, the Treasury can demand accelerated repayment of the loan.

Terms of Loans:
• Term: 7 years (or longer as may be determined by the Oversight Board).
• Interest Rate: 5% for first 5 years and 9% thereafter.
• Super Seniority: All other obligations and liabilities of a recipient will be subordinate to the loan—putting the taxpayer in the first position for repayment.
• No prepayment penalty.

Read a more detailed summary (.pdf)>>

Read the draft legislation (.pdf)>>

]]> Mon, 17 Nov 2008 19:23:00 CST AUSTIN, Texas – Texans who became unemployed because of Hurricane Ike have more time to apply for Disaster Unemployment Assistance (DUA), now that the deadline has been extended to Dec. 12, according to the Federal Emergency Management Agency (FEMA) and the Texas Governor’s Division of Emergency Management (GDEM).

This is the second time the DUA deadline has been extended. State and federal disaster recovery officials say another 30 days should give Texans in need of unemployment assistance enough time to apply.

The DUA program is funded by FEMA through the U.S. Department of Labor and administered by the Texas Workforce Commission. To date, more than 7,000 eligible Texans have been approved for assistance totaling more than $2.1 million.

To apply before the mid-December deadline, workers can go online to www.texasworkforce.org or call a Texas Workforce Unemployment Insurance Tele-Center at:

 

281-983-1100

Phone lines are open 8 a.m. to 5 p.m. Monday through Friday.

 

DUA applies to Texans in the 34 counties designated to receive assistance for individuals, whose employment or self-employment was lost or interrupted due to the hurricane and to anyone living outside a designated county whose employment in a designated county was affected.

The 34 counties are Angelina, Austin, Brazoria, Chambers, Cherokee, Fort Bend, Galveston, Gregg, Grimes, Hardin, Harris, Harrison, Houston, Jasper, Jefferson, Liberty, Madison, Matagorda, Montgomery, Nacogdoches, Newton, Orange, Polk, Rusk, Sabine, San Augustine, San Jacinto, Shelby, Smith, Trinity, Tyler, Walker, Waller and Washington.

 

0 Comments ]]> Mon, 17 Nov 2008 19:12:31 CST Speaker Pelosi issued the following statement this afternoon following a meeting late this afternoon that House Democratic leaders held with Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke:

House Democratic leaders today made it clear to Secretary Paulson and Fed Chairman Bernanke that they must take immediate action and do everything they can to help hardworking Americans stay in their homes.

The solutions to the problem at the root of our economic crisis – aggressively addressing home foreclosures – have been known for some time. Further delay in implementing these solutions is unacceptable. The leaders urged Secretary Paulson to take the following measures:

First, Secretary Paulson must exercise all of the authorities granted to him under the Emergency Economic Stabilization Act (EESA) to facilitate residential loan modifications and avoid preventable foreclosures.

Second, the Democratic leaders called on the Secretary to use his authority to encourage mortgage servicers to take advantage of the HOPE for Homeowners Program and to engage in systematic loan modification initiatives.

Finally, the leadership urged Secretary Paulson to support FDIC Chair Sheila Bair’s $24 billion foreclosure mitigation proposal, which would substantially reduce preventable foreclosures for as many as 2 million borrowers.

Our country faces a serious and worsening foreclosure crisis that is affecting millions of Americans. Addressing the underlying problem of home foreclosures, and stopping the continued drop in home values, is essential to restoring confidence in our financial system, freeing up the flow of credit consumers and small businesses, and spurring renewed economic growth.

]]> Mon, 17 Nov 2008 15:48:00 CST The American Red Cross and Pitney Bowes Inc. have announced that they will work together to touch the lives of thousands of men and women in uniform this holiday season. Their program, ‘Holiday Mail for Heroes’ is a coordinated effort to show appreciation for our troops by sending a personal greeting during this special time of year.

From Tuesday, November 11 until Wednesday, December 10, the public is invited to send holiday cards with their message of thanks and cheer to a special post office box. The Red Cross and Pitney Bowes will then screen cards for hazardous materials, sort and package the cards, and deliver them to military bases and hospitals, veteran’s hospitals, and other locations during the holidays.

For more information, please click here.

0 Comments


]]> Mon, 17 Nov 2008 15:44:50 CST The funds from the financial rescue package are going all over the place. They forced a quick vote on something because they were convinced that they needed to implement a plan immediately.Now they realize that the plan they envisioned does not immediately address our economic problem, and it’s a plan that they perhaps should not have implemented at all, and now they are changing directions.

 

I think the biggest reality in this is the so-called “experts” got it wrong. This is definitely one place where everybody is kind of feeling their way along. My concern was the Administration’s attitude focused on doing something quick, rather than making sure it was right.

 

read more

]]> Sat, 15 Nov 2008 15:30:06 CST As Congress prepares to address the economic crisis facing the domestic automobile industry, Speaker Pelosi released the following statement today concerning legislation under development by House Democrats:

Recognizing the severe challenges facing the domestic automobile industry, whose failure could jeopardize millions of jobs here at home and have a devastating impact on our economy, the House Democratic bill will provide immediate, targeted assistance to allow the carmakers, together with affected unions, time to develop a plan to assure the long-term viability of the industry.

That plan must reflect these principles:

Restructure the automobile companies to ensure their long-term economic viability;

Meet standards for fuel efficiency that ensure the competitiveness of U.S. autos, including new fuel-efficiency standards;

Deploy advanced vehicle technologies required to compete in the domestic and global market.

The appropriate source of funding for this short-term assistance is the Troubled Assets Relief Program (TARP) recently authorized by Congress. The Democratic plan includes even stronger limits on executive compensation and assurances to protect the taxpayer.

Any effort to divert funds from the advanced technology initiative contained in section 136 of last year’s energy bill is a step backward in assuring the viability and competitiveness of the U.S. auto industry.

A restructured, competitive American automobile industry will continue to play a crucial role in our national economy and in the global marketplace.

]]> Fri, 14 Nov 2008 19:42:00 CST Today, a Wall Street Journal editorial further perpetuated an active campaign that is blatantly misrepresenting Democratic efforts to preserve and strengthen Americans’ retirement security. In light of these ongoing distortions, Chairman George Miller reiterated the committee’s legislative priorities in preparation for the next Congress’ efforts to help Americans enjoy a secure retirement.

The Wall Street Journal is needlessly creating fear among Americans rightly worried about their retirement security by misrepresenting my efforts to strengthen workers’ retirement savings – attacks that have no basis in fact.  I do not support ‘abolishing’ 401(k)s, moving these plans, or changing their tax status, plain and simple.  The truth is that Democrats in Congress are working to preserve and strengthen 401(k)s.

Last year, our Committee worked with the employer and investment community to pass legislation to increase transparency and protect workers’ hard-earned retirement savings from excessive and hidden fees that could cut deeply into their accounts. In addition to providing workers with better information about the fees they’re paying, we know other steps must be taken to make sure our retirement system is as strong as it can be for our nation’s workers and retirees. These principles will help guide the next Congress as we work to ensure that every American can enjoy a safe and secure retirement.

***************

Recent hearings held by the committee have shown the devastating toll the economic downturn has leveled on Americans’ retirement savings, including the loss of over $4 trillion in pension benefits.

To help preserve and strengthen 401(k)-style and other retirement plans, Chairman Miller today released the following principles:

•    Expose excess fees that Wall Street middle men take from workers accounts. Currently, millions of Americans are paying excessive 401(k) fees at the hands of Wall Street middle men who refuse to fully disclose and detail extra fees and charges paid by employees. This is wrong, especially in light of the dramatic losses faced by millions of Americans in their 401(k) plans this year. According to the GAO, even a difference of just 1 percentage point in hidden fees can drastically eat into a worker’s 401(k) account balance – by as much as 20 percent or more over a career. This 1 percentage point difference could cost a worker with a $20,000 account balance more than $12,000 in reduced savings over this time period.

•    Bring young and low-wage workers into the system at a higher rate through automatic enrollment for employers already offering 401(k)s. Unless employers more quickly automatically enroll new workers, nearly 40 percent of workers born in 1990 will have no 401(k)-style savings at all when they retire, according to the GAO. Current law allows employers to automatically enroll their workers in their companies’ 401(k)s but employers have been slow to enroll employees. Studies show that automatic enrollment can increase participation by as much as 35 percentage points. And even after 3-4 years, the vast majority of those automatically enrolled are still participating.

•    Ensure that retirement accounts have diversified investment options with low fees. Many 401(k) plans have inadequate, and all too often, expensive investment options. Workers should have access to simple investment options, including low-cost index funds.

•    Ensure workers have access to reliable independent investment advice. Too often, workers are given self-interested advice from financial advisors or money managers – advice that may not always lead to the best retirement investment. All plan participants should have access to objective advice and investment information to help them better manage their savings.

•    Reduce vesting periods and improve portability of 401(k) accounts. Workers are leaving millions of dollars on the table because of employers’ rules that take away their savings when they change jobs. In many cases workers are required to work at a firm for three years or more before they can fully access their retirement savings. In addition, the GAO says that by automatically rolling over accounts into a new retirement plan when workers leave a job, Americans’ retirement savings would increase by a projected 11 percent on average, with the biggest percentage increases for low-income workers.

In April, the committee passed the 401(k) Fair Disclosure for Retirement Security Act (H.R. 3185), which would help workers shop around for the best retirement investment options by providing complete information on how much in fees is taken from their retirement accounts. The legislation was supported by the AFL-CIO, the AARP, the American Society of Pension Professionals and Actuaries, the Council of Independent 401(k) Recordkeepers, and the Pension Rights Center.

]]> Fri, 14 Nov 2008 19:16:05 CST This afternoon the Bush Administration proposed that the automobile industry be given “quick access to a $25 billion federal loan program, by dropping a requirement that the money be spent on converting to fuel-efficient vehicles.” Speaker Pelosi released the following statement:

The President’s proposal would unwisely divert money urgently needed for modernization of the U.S. auto industry, so that it can be competitive in the future, making energy-efficient vehicles and meeting our national security imperative of energy independence. Democrats are working to find a bipartisan solution to sustain the industry that supports 1 in every 10 jobs in America until these technological advances are achieved, while protecting the interests of taxpayers. The President should join us in this effort.

As Speaker Pelosi stated earlier this week:

In order to prevent the failure of one or more of the major American automobile manufacturers, which would have a devastating impact on our economy, particularly on the men and women who work in that industry, Congress and the Bush Administration must take immediate action.
…
It is essential for the domestic automobile manufacturing industry to re-emerge as a global, competitive leader in fuel efficiency and in new, path-breaking energy-efficient technologies that protect our environment. For the automobile industry to be truly viable, it must continue to move in this direction.

]]> Fri, 14 Nov 2008 16:53:52 CST Speaker Pelosi and Senate Leader Reid announced today the appointment of three members to the Congressional Oversight Panel, which will review and report to Congress on the current state of the financial markets and the regulatory system:

The panel is required to submit monthly reports to Congress on the use of the Treasury Secretary’s authority under the Emergency Economic Stabilization Act, the impact of the government’s asset purchases on financial markets, the effect of transactions’ disclosure on market transparency, and the effectiveness of the program on mitigating foreclosures and maximizing taxpayer benefits. The oversight panel will deliver a report to Congress by January 20, 2009, analyzing the effectiveness of the current regulatory structure in overseeing the financial system and protecting consumers, and providing recommendations on improved regulation for market participants that fall outside of the current regulatory structure.

Speaker Pelosi appointed Richard H. Neiman, Superintendent of Banks in New York, and Majority Leader Reid appointed Elizabeth Warren of Harvard Law School. Pelosi and Reid jointly appointed Damon Silvers, AFL-CIO Associate General Counsel.

“The members of the Congressional Oversight Panel will provide independent and ongoing oversight to ensure that the recovery program is managed with full transparency and strict accountability,” Speaker Pelosi said. “It is critical that taxpayers are protected as efforts continue to stabilize the financial markets and restore confidence, and the work of the oversight panel will further that goal. Richard Neiman, Elizabeth Warren, and Damon Silvers bring a wealth of knowledge and experience to the panel and will serve with distinction.”

“I am very pleased with the breadth of experience our Democratic selections will bring to the Congressional Oversight Board,” Reid said. “With their leadership, the Board will provide critical assistance to Congress in its work to improve the economy.”

Richard Neiman was appointed to serve as New York State’s Superintendent of Banks in March 2007. Prior to his appointment, Neiman was President and Chief Executive Officer of TD Bank USA, N.A. He also serves on the board of the Conference of State Bank Supervisors and chairs Governor Paterson’s taskforce, Halt Abusive Lending Transactions, to address the housing and foreclosure crisis.

Elizabeth Warren is the Leo Gottlieb Professor of Law at Harvard University, where her research areas include bankruptcy and commercial law and financially distressed companies. She serves on the FDIC’s Advisory Committee on Economic Inclusion and previously served as Vice President of the American Law Institute and as an advisor to the National Bankruptcy Review Commission.

Damon Silvers has served as Associate General Counsel at the AFL-CIO since September 1997, where he has represented the labor movement before the Securities and Exchange Commission. He also chairs the Subcommittee on Concentration and Competition in the Treasury Department’s Advisory Committee on the Auditing Profession and serves on the Treasury Department’s Investor’s Practice Committee of the Presidents’ Working Group on Financial Markets.

The panel will also include one member appointed by the House Minority Leader and one member appointed by the Senate Minority Leader.

]]> Fri, 14 Nov 2008 15:34:00 CST On Saturday, November 15, HOPE NOW is hosting an event at Lakewood Church for homeowners facing foreclosure. The event will be open to the public from 8 a.m. until 2 p.m. and will give you an opportunity to meet one-on-one with your lender or a housing counselor to discuss workout options to avoid foreclosure. You may also call the HOPE Hotline at (888) 995-HOPE for more information.

Saturday, November 15, 2008
Lakewood Church
3700 Southwest Freeway
Houston, TX 77027

Parking is free.

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]]> Fri, 14 Nov 2008 12:42:16 CST Today, the Oversight Committee is holding a hearing on foreclosure prevention:

Congress established the $700 billion Troubled Asset Relief Program on October 3, 2008 to deal with the financial crisis. One of TARP’s core functions was to prevent future foreclosures through the acquisition of mortgage-related assets, such as whole loans, mortgage-backed securities and other financial products, and the implementation of a plan to stem foreclosures on those loans. In creating TARP, Congress was aware of the efforts of the private mortgage servicing industry to prevent foreclosures, and committed an extraordinary sum of taxpayer funds to expand upon those efforts. On November 12, 2008, Treasury Secretary Henry Paulson announced that TARP would not acquire mortgage-related assets. In light of this significant change in TARP’s mission, important oversight questions arise.