Hulshof Again Opposes Bailout

Press Release

By:  Kenny Hulshof
Date: Oct. 3, 2008
Location: Washington, DC


U.S. Congressman Kenny Hulshof, R-Mo., issued the following statement on Friday:

"Our economy continues a two-week roller coaster ride on Wall Street that now is being felt on Main Streets throughout America. Many constituents have contacted me over the last few days expressing their anxiety over the economic uncertainty we face. Missourians are concerned about the tightening credit market, declining job market, and safety of their investments.

"Leading up to this past Monday's vote, constituents who contacted my offices were overwhelmingly opposed to the proposal brought to the House of Representatives by Treasury Secretary Henry Paulson.

"I had hoped that the new proposal brought forward by the Administration and Congressional Democrats would have addressed the concerns that I and other House Republicans had raised. Unfortunately, the bill today is still deficient in many areas. Therefore, I cannot support this measure.

"The price tag on this bill is still excessive. In fact, the cost has increased $100 billion since the bill was considered by the U.S. Senate. I do support some of the provisions added to this bill, including the provisions on Mental Health Parity, the Alternative Minimum Tax Patch, tax incentives for development of bio-fuels and a series of incentives for energy use and development. Those provisions, however, should be considered in separate legislation and should not be added as an enticement to sway additional votes as the tax extenders are not germane to the issue the bailout package seeks to address.

"It's true the Securities & Exchange Commission ‘clarified' their rules on mark-to-market accounting, but that temporary regulatory change does not go far enough. I continue to believe this accounting practice has exacerbated the current economic crisis. I wholeheartedly agree that we need more transparency in our accounting rules, so that shareholders and investors know exactly what they are buying into, but these accounting rules seem to be doing more harm than good.

"The bill today still does not address the practice of naked short selling, which will once again be legal at the end of the week.

"Under this legislation, Congress would only be consulted by the Treasury Secretary for billions of dollars in loan authority after the fact of granting said authority. I strongly believe that Congress should be consulted first and throughout this process. I wholeheartedly support the proposal offered by Rep. Steve LaTourette (R-OH) that would immediately authorize $250 billion in authority to purchase toxic mortgage assets but then would require the Administration to consult with Congress to approve additional funding if needed. Said proposal was, unfortunately, given no serious consideration.

"We have received no assurances from the Secretary of the Treasury that he is fully supportive of implementing a sound, market-based insurance alternative. The Secretary has remained fixated on the singular approach of America's taxpayers providing the backstop for Wall Street's mistakes, rather than the hybrid approach House Republicans have proposed.

"Again, for all of the preceding reasons, I voted ‘no' on this version of the Emergency Economic Stabilization Act."