From My Senator on the Bailout of Wall Street
Senator Feinstein’s veeeeeeeery long response to a letter I submitted to her office. Her key points are:
- Necessity for a bailout
- Phased funding of bailout
- Paulson plan thumbs down because too much power in one person. Entrust responsibility not just to one person. More oversight/accountability necessary.
- Legislative reform of the financial system in the first quarter of 2009
- Protection for tax payers in the form of warrants/stock/etc. Learn from the Swedes.
- Cap on executive compensation for firms that participate in bailout. If executives balk, let them sink or swim on their own.
- Mortgage relief
Dear Ms. XXX:
Thank you for your letter expressing concern about Congress’ consideration of a plan to meet our Nation’s credit crisis with financial help from the Federal Government. This is a difficult situation for which there are no perfect solutions, and I would like to share my thoughts and concerns about this issue with you.
On September 19, 2008, Secretary of the Treasury Henry M. Paulson, Jr. announced a legislative proposal to use $700 billion to purchase illiquid mortgage-related assets from ailing financial institutions. Secretary Paulson’s three-page proposal was a non-starter, and without critical changes it has no chance of approval from Congress.
This proposal would have given a blank check to an economic czar who would have been empowered to spend it without administrative oversight, legal requirements, or legislative review. Decisions made by the Treasury Secretary would be non-reviewable by any court, agency, or Congress. The proposal also lacked a requirement for regular reports to Congress on the status of the program. This was simply untenable.
Since this announcement, my offices have received thousands of comments from Californians like you concerned about how this action will affect them. Yet, I believe prudent action must be taken. The bill should include the following principles: a phase-in of funding; oversight, accountability and transparency; a mechanism allowing the Secretary of the Treasury to modify mortgages to prevent additional foreclosures; and a precise cap on executive compensation.
The current credit crisis affects all Americans. If action is not taken to stem the crisis, Americans risk losing their homes, jobs, personal savings, life insurance and more. Banks will cease to lend to businesses and homeowners, and credit will be increasingly difficult to come by for average Americans. I strongly believe that the consequences of failing to act now would be greater than not acting at all.
Attached please find a statement I recently made on the floor of the Senate expressing my feelings on this issue. Please know that I will keep your thoughts in mind as this situation unfolds.
Once again, thank you for writing. If you have any additional questions or concerns, please do not hesitate to contact my Washington, D.C. office at (202) 224-3841. Best regards.
U.S. Senator Dianne Feinstein (more…)
RIP Cool Hand Luke
| There aren’t enough accolades to shower on Paul Newman.
Paul Newman, a Magnetic Titan of Hollywood, Is Dead at 83 – The New York Times
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Free Radio!
| I don’t listen to Pandora much. However, I do listen to:
The idea of Clear Channel – clear because it’s vacuous – quashing internet radio deserves a major thumbs down. Save internet radio! Contact your congressional representatives or call John Campbell: 202-225-5611! |
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Hi, it’s Tim from Pandora;
After a yearlong negotiation, Pandora, SoundExchange and the RIAA are finally optimistic about reaching an agreement on royalties that would save Pandora and Internet radio. But just as we’ve gotten close, large traditional broadcast radio companies have launched a covert lobbying campaign to sabotage our progress.
Friday, Congressman Jay Inslee, and several co-sponsors, introduced legislation to give us the extra time we need but the National Association of Broadcasters (NAB), which represents radio broadcasters such as Clear Channel, has begun intensively pressuring lawmakers to kill the bill. We have just days to keep this from collapsing.
This is a blatant attempt by large radio companies to suffocate the webcasting industry that is just beginning to offer an alternative to their monopoly of the airwaves.
Please call your Congressperson right now and ask them to support H.R. 7084, the Webcaster Settlement Act of 2008 – and to not capitulate to pressure from the NAB. Congress is currently working extended hours, so even calls this evening and over the weekend should get answered.
If the phone is busy, please try again until you get through. These calls really do make a difference.
Representative John Campbell: 202-225-5611
Thanks so much for you ongoing support.
Tim
