Statement on the Emergency Economic Stabilization Act of 2008

Press Release

"On September 29, the House of Representatives debated and ultimately rejected the Emergency Economic Stabilization Act of 2008, which was designed to inject capital into our economy to prevent a devastating impact on the pocketbooks of working American families. I voted in favor of the bill. I did so not because I support government intervention in our private markets, but rather because after listening to the experts and economists, I believe that action is necessary to avert a far worse outcome for our economy and our nation. I am disappointed that the bill did not secure sufficient support.

"The financial crisis that we are facing on Wall Street is directly tied to the financial security of hard-working North State residents. Over the last week two major banks, Washington Mutual and Wachovia, have failed and been bought out by competitors. A crumbling stock market might lead to a possible run on our local banks. The possibility of a credit crunch, wherein small business owners and farmers would be unable to get necessary credit to stay in business, would devastate our local economy. When banks are no longer able to make loans to small businesses, jobs are at risk. The potential consequences of doing nothing are far too great to stand on the sidelines and hope for the best.

"We need to act as soon as possible to help calm our troubled markets and prevent the troubles on Wall Street from negatively impacting our local banking system in the North State. Although the bill did not pass the House, I am hopeful that we can arrive at a bipartisan agreement very soon that will offer taxpayer protection, maintain our free market foundations, and provide long-term reforms while providing necessary relief for our current economic challenges. I will continue working to protect the financial security of the citizens of the North State and our nation.

"At the heart of this issue lies the need for strong and meaningful reform to the lending system that put us in this situation. We must examine our out-dated regulatory system. It isn't a question of more or less regulation, but rather smart regulations that work."

Source