Speaker Pelosi announced today that House Democratic leaders will convene an economic forum on Monday with some of America's leading economists to help Congress develop an economic recovery plan that focuses on creating jobs and strengthening our economy:

“Just as the President and Congress worked together in recent weeks on an economic rescue plan to help bring stability to our financial markets, we must now take additional action and pass a jobs creation and economic recovery stimulus plan,” Pelosi said.

The October 13 forum, to be held in the Speaker's office in the Capitol, will help Congress develop an economic recovery plan that will create jobs by rebuilding our roads, bridges and highways, prevent cuts to vital government services such as health, education, and public safety, extend unemployment benefits, and help families cope with rising food costs.

“House Democratic leaders look forward to hearing from many of America's preeminent economic minds on what Congress and the President can do together to help families who are struggling in these difficult and worrying economic times,” Pelosi said.

Speaker Pelosi today called on the Secretary of the Treasury Henry Paulson to strengthen the conflict of interest provisions included in the Emergency Economic Stabilization Act to ensure that taxpayers' interests are protected. The Speaker said that the conflict of interest interim guidelines for contractors and asset managers who will be hired by the Treasury to run the program fall short of meeting the standards directed by Congress to protect taxpayers writing, “we all need to assure the American people of our commitment to meaningful oversight and to protecting the interests of taxpayers. I therefore urge you to reconsider your interim guidelines and to strengthen them to avoid even the appearance of conflicts of interest by the same financial institutions who may also benefit.”

The full text of the letter to Secretary Paulson:

October 7, 2008

Secretary Henry Paulson
Department of the Treasury
1500 Pennsylvania Ave., NW
Washington, D.C. 20220

Dear Secretary Paulson:

All Americans are hopeful that the recently enacted Emergency Economic Stabilization Act will be successful in instilling confidence in our financial markets. The original proposal which you submitted to Congress in mid-September did not contain essential provisions to ensure appropriate independent oversight, judicial or administrative review, or adequate safeguards to avoid conflicts of interest. As you are aware, Congress added several provisions to this legislation to significantly increase independent oversight, accountability, and transparency. In particular, Congress voted overwhelmingly to include provisions to avoid or minimize conflicts of interest.

The new law provides the Treasury Secretary discretion to decide how to address conflicts of interest through guidelines, regulations, or by prohibiting them altogether. As I have reviewed the interim guidelines issued by Treasury yesterday, and those in Treasury's solicitation for asset management and other portfolio management services, I am very concerned that they fail to meet the tough conflict of interest standard directed by Congress in the legislation.

Under these guidelines, companies that benefit from the Troubled Assets Relief Program (TARP) may also be eligible to offer asset management or other contractor services if Treasury personnel approve a mitigation plan. These guidelines would appear to permit financial institutions with a clear conflict of interest to participate in the management of the TARP, a situation that provides insufficient protection to taxpayers. Given the significance of the TARP for the recovery of our financial markets, the American public must have complete confidence that those managing the program are doing so entirely for the benefit of the public and not to benefit their own self-interests.

We all need to assure the American people of our commitment to meaningful oversight and to protecting the interests of taxpayers. I therefore urge you to reconsider your interim guidelines and to strengthen them to avoid even the appearance of conflicts of interest by the same financial institutions who may also benefit from the TARP.

best regards,

NANCY PELOSI
Speaker of the House

Today, the Oversight Committee is holding a hearing to examine the regulatory mistakes and financial excesses that led to government bailout of AIG. Learn more about the hearing at: http://oversight.house.gov/story.asp?ID=2211

Author: NancyPelosi
Keywords: Oversight Congress AIG bailout Van Hollen
Added: October 7, 2008

Today, the Oversight Committee is holding a hearing to examine the regulatory mistakes and financial excesses that led to government bailout of AIG. Learn more about the hearing at: http://oversight.house.gov/story.asp?ID=2211

Author: NancyPelosi
Keywords: Oversight Congress AIG bailout Speier Sullivan
Added: October 7, 2008

Today, the Oversight Committee is holding a hearing to examine the regulatory mistakes and financial excesses that led to government bailout of AIG. Rep. Braley and Chairman Waxman question Robert B. Willumstad and Martin J. Sullivan. Learn more about the hearing at: http://oversight.house.gov/story.asp?ID=2211

Author: NancyPelosi
Keywords: test
Added: October 7, 2008