Congressman Dave Reichert (WA-08) today voted to protect taxpayers by opposing the authorization of $700 billion to buy troubled assets. The House rejected the measure by a vote of 205-228.
"Undeniably, action is necessary to address the crisis in our financial markets and ensure that credit remains available for middle class families to buy homes and put their children through college. That's evident by the daily fluctuations in the market. I'm hopeful that Congress will soon consider a modified version of the bill that was rejected today that will stabilize markets, utilize more private capital, and bring new oversight, reform, and accountability while protecting taxpayers.
"It's more important to get this legislation right than to act in haste. Panic on Wall Street brought us to this point, and we cannot let panic in Congress push through a remedy that is worse than the illness. Instead of a $700 billion blank check, we need a comprehensive package that helps Wall Street recover with more private capital, not taxpayer dollars; that holds accountable the bad actors who contributed to this crisis; and that enforces existing laws while modernizing outdated ones.
"Congress has already approved $200 billion to bail out Fannie Mae and Freddie Mac and $85 billion bailing out AIG; what assurance do we have that this $700 billion gamble isn't just another roll of the dice at taxpayer expense?"
Reichert was concerned that the package did not go far enough to curb executive compensation, did not contain appropriate oversight and enforcement, and did not require Wall Street to contribute what it should to the rescue. He was especially concerned that this proposal did not include any long-term planning for our fiscal future, particularly for how to fulfill our promise to provide benefits owed to our seniors like Medicare and Social Security.
Reichert spent the week gathering information, evaluating dozens of proposals, and carefully deliberating the package. He met with and solicited input from Republican and Democratic lawmakers, leading economists and financial experts, Treasury Secretary Paulson and senior Administration officials, members of his 8th District Economic Advisory Committee, and heard from thousands of constituents.