Statement From Mike Johanns On Today's News Regarding The Financial Markets

Press Release

Today, Mike Johanns released the following statement in response to news from Wall Street regarding the financial markets:

"Today's news from the financial markets will impact the economy and families across the nation. There was an obvious day of reckoning looming on the horizon and it appears that day has arrived. This is a very serious situation that requires thoughtful and urgent actions, and I recognize the added financial difficulty now facing too many families across our country.

"Lending practices in parts of the country were simply out of control. Offers for 'zero down' and 'interest only' loans posed a serious problem, and now the negative effects of these practices are being felt by families, small businesses, farmers and ranchers. We knew there were limits to taxpayer bailouts for certain financial institutions, and they arrived this weekend.

"I believe we can and should take actions to ensure we are not faced with a similar predicament in future years. We must have a transparent, predictable and tough regulatory environment for these kinds of institutions based on sound conservative lending practices to ensure hard-working people across the country are not exposed to these tactics in the future. There must be an independent regulatory system with an independent budget to keep them free of pressure from those seeking to promote their own agenda. And finally, the regulatory system must be fully funded to ensure those acting as watchdogs for families and small businesses on Main Street are able to offer better protections going forward."

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