Royce Opposes $300 Billion Bailout

Press Release

Refuses to Fund Radical Organizations at Cost to American Taxpayers

Rep. Ed Royce (R-CA), a senior member of the Financial Services Committee, expressed his opposition to "the Foreclosure Prevention Act of 2008" which rewards radical organizations and loads risk onto the backs of the American taxpayers.

"Because I believe good governance and protecting the American taxpayer must trump rewarding radical organizations and imprudent lenders and speculators I will be opposing this legislation and I encourage my colleagues to do the same.

The failure of Congress to pass such critical legislation over the years could end up being one of Washington's greatest oversights in recent history. Worse yet, we are here today asking, as we so often do, the American taxpayer to pay for our past failures."

Today's legislation has been loaded with handouts and improperly funded liabilities, the most obvious of which bails out speculators and investors that incorrectly gambled on the housing industry and the institutions that provided their loans.

The $300 billion plan would allow banks to dump their least appealing loans onto the Federal Housing Administration. By taking on these mortgages, we are shifting that default risk, currently held by institutions and investors around the world, onto the backs of the American taxpayers.

Perhaps less obvious than the $300 billion bailout, but in many respects more egregious, is the affordable housing fund which would funnel as much as $600 million every year to activist organizations with long histories of both voter fraud and anti-free market advocacy throughout the country.

"I encourage my colleagues to join me in opposing this legislation because of the unprecedented amount of taxpayer liabilities included in this package. This is an affront to good governance and it should be avoided at all costs."

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