“Our country is facing the most serious and critical domestic issue I have dealt with in my 14 years in Congress. We have been betrayed by many people, and greedy Wall Street executives have abused the system, leaving taxpayers to feel the pain,” U.S. Sen. Saxby Chambliss, R-Moultrie, said in a statement.
The House, which voted down a bailout plan 228-205 Monday, is expected to vote again on the measure as early as midday today.
“The House leadership appears to be cautiously optimistic regarding the potential for the bill’s passage,” U.S. Sen. Johnny Isakson’s, R-Atlanta, said.
U.S. Sanford Bishop, D-Albany, released a statement as he was on his way to Washington Thursday. Bishop, who voted in favor of the original bill on Monday, emphasized that before he decides which way to vote on the new package, he will first consider whether the legislation, which has seen many revisions since Monday, is the best decision for the 2nd Congressional District, as well as the country.
“This is a very serious situation, and the legislative remedy that will be presented represents a considerable financial commitment of taxpayer money,” Bishop said.
Bishop said he would only support the Senate rescue plan if he saw it as “a long-term solution that could not only help the nation avert a deepening of the current financial crisis, but do so in a way that builds in significant protection for taxpayers, for those facing foreclosure and for those who have seen their 401(k)s and savings dwindle as a result of the crisis.”
The updated legislation would authorize the treasury secretary to immediately use up to $250 billion to purchase distressed assets from institutional investors. If necessary, the secretary may then access an additional $100 billion to purchase these distressed assets with presidential approval, a news release from Isakson said.
“This legislation addresses the crisis immediately by restoring credit markets and liquidity,” Isakson said. “While the legislation does create an increase in debt in the short-run, it affords the opportunity over time for the money to be returned to the government at a profit. Because the market for mortgage-backed securities has frozen, the value of these assets held by community banks, credit unions and insurance companies has collapsed. By establishing a market for these securities, liquidity will return to the market and these securities will regain value once more.”
Isakson also said that an additional $350 billion may be accessed if the president transmits a written report to Congress requesting the funds. The treasury secretary may use this additional authority unless Congress passes a joint resolution of disapproval within 15 days.
“I had a significant choice to make between two very different courses of action — do nothing at all or do what I truly believe is best for America,” Chambliss said. “I believe to the core of my being that doing nothing will devastate our economy, destroy the financial security of millions of Americans and could possibly force our nation into a depression. I just as strongly believe the bill as it has been negotiated will provide stability during this crisis and will begin to turn our economy around.”
Isakson said the bill directly benefit Georgians.
“It will help stabilize the credit market and allow Georgians continued access to affordable credit for home and car loans, bonds for public schools and local governments, student loans and small businesses,” Isakson said. “In addition, this legislation will prevent tax increases on students, teachers and families, including 24 million taxpayers nationwide who will be protected from having to pay an average of $2,000 of alternative minimum tax on top of what they already owe. If we fail to take action, we will be putting Georgia businesses and Georgia jobs at risk.”
The bill has a number of provisions attached to it to ensure oversight by Congress and accountability to taxpayers, the senators said. Such provisions include limits on executive compensation. Companies that receive more than $300 million from this plan will have limits placed on their top five executives, including a ban against receiving what Isakson called a “golden parachute,” and limits in tax deductions they can take for compensation over $500,000.
“This bill has been carefully crafted to arrest our current financial crisis, restore security for the American taxpayer and ensure that our nation is the strongest economic power in the world,” Chambliss said. “I know that my vote in favor of this package was not the politically popular thing to do, but this is not a popularity contest. This is about the future of our country and the future that my children and grandchildren will inherit. I have absolutely no doubt in my mind or my heart that my vote in support of this measure was the right thing for our economy, for Georgians and for our country.”
Chambliss’ Democratic rival for his Senate seat in next month’s election, Jim Martin, said he was “disappointed but not surprised” that Chambliss voted in favor of the bill.
“This updated package still fails to address the fundamental problems created by the deregulation of Wall Street, which Chambliss went to Washington and voted for every step of the way,” Martin’s campaign said. “And it lacks consumer protections to stem the abusive lending practices that are at the root of this crisis — practices that I sounded the alarm on two years ago, long before the mortgage crisis began.”
