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Boehner to Pelosi (Letter and Principles of GOP)
The Corner at National Review ^ | 26 September 2008 | John Boehner

Posted on 09/26/2008 8:35:05 AM PDT by SE Mom

Just delivered:

September 26, 2008

The Honorable Nancy Pelosi

Speaker of the House

H-232, U.S. Capitol

Washington, D.C. 20515

Madame Speaker:

As our discussion ended last night, we agreed to continue talking about how to best solve this economic crisis. Like you, House Republicans and I believe we must address this crisis quickly and in a way that protects the interests of families, seniors, small businesses, and all taxpayers. As you know, this process is not about faceless executives on Wall Street, but about keeping families in their homes, safeguarding their retirement security, college savings, and bank accounts, and protecting their jobs.

Over the last week, we have frequently discussed Secretary Paulson’s proposal, and I have repeatedly expressed the need for improvements on behalf of myself and my Republican colleagues. Our staffs have also been in regular contact. To that end, Financial Services Committee Ranking Member Spencer Bachus (R-AL) was tasked by House Republicans to engage in discussions with Chairman Barney Frank (D-MA) and Chairman Chris Dodd (D-CT) and report back to our Conference on the progress of those negotiations before a final deal could be made. Yet Chairman Frank and Chairman Dodd, on several occasions over the last several days, announced that a bipartisan deal was at hand even though the reservations about the underlying proposal I had expressed to you had not been addressed. Each time such announcements were made, or even rumored, I or my staff made it clear to media and to your staff that any such deal did not include House Republicans.

As we demonstrated at the beginning of this year when we crafted a timely agreement on the economic stimulus package, a bipartisan response to our nation’s priorities is never out of reach. And I believe the same holds true at this hour. House Republicans are prepared to stay in Washington to forge an agreement on a proposal that reflects the core free-market, pro-taxpayer principles of our Party.

With that in mind, earlier this week, with your knowledge, I directed our Chief Deputy Whip Eric Cantor (R-VA) to lead a working group of House Republicans to develop a package of ideas to move this process forward. His working group represented a broad cross-section of House Republicans – including both moderate and conservative members – and their goal was to develop ideas worthy of support on both sides of the aisle. We have discussed some of these ideas, and I would like to reiterate that I believe they should be given the consideration they deserve as our economic rescue discussions continue. A brief overview of the working group’s blueprint is included with this letter.

Madam Speaker, we owe it to all those with a stake in this process to continue our discussions until we arrive at an agreement that is acceptable on both sides of the aisle – and more importantly, one that serves the interests of American taxpayers. That is why I ask you and your Democratic colleagues to give the House Republican working group’s proposals serious consideration as this process moves forward. If such consideration is not given, a large majority of Republicans cannot – and will not – support Sec. Paulson’s plan. In the interest of the men and women we represent in Congress, I hope it does not come to that conclusion. I look forward to your timely response and to continuing our work together on an economic rescue package worthy of all of our support.

Sincerely,

John Boehner

Republican Leader

HOUSE REPUBLICAN WORKING GROUP – ECONOMIC RESCUE PRINCIPLES

I. Wall Street – Not Taxpayers – Should Fund the Recovery

The most troubling part of Sec. Paulson’s plan is that it relies wholly on taxpayer funds. House Republicans believe that rather than providing taxpayer funded purchases of frozen mortgage assets to solve this problem, any rescue package should adopt a plan to insure mortgage backed securities (MBS) through payment of insurance premiums.

Currently, the federal government insures approximately half of all MBS and can insure the rest of those still outstanding. However, rather than taxpayers funding the insurance, the holders of these assets should pay for it. The working group’s proposal would direct the Treasury Department to design a system to charge premiums to the holders of MBS to fully finance this insurance.

II. Private Capital – Not Tax Dollars – Should Be Injected Into Financial Markets

Instead of injecting taxpayer funds into the market to produce liquidity, private capital can be drawn into the market by removing burdensome regulatory and tax barriers that are currently blocking private capital formation. In short, too much private capital is sitting on the sidelines during this crisis, and it is well past time to unleash it.

Temporary tax relief provisions can help companies free up capital to maintain operations, create jobs, and lend to one another. In addition, the working group recommends a temporary suspension of dividend payments by financial institutions and other regulatory measures to address the problems surrounding private capital liquidity.

III. Immediate Transparency, Oversight, and Market Reform

Both Republicans and Democrats have made clear that they believe there is not a strong enough oversight component in Sec. Paulson’s plan. The House Republican working group’s proposal addresses this flaw. To begin, the plan would require participating firms to disclose to the Treasury Department the value of their mortgage assets on their books, the value of any private bids within the last year for such assets, and their last audit report. Additional safeguards include:

To limit federal exposure for high risk loans, the working group’s recommendations mandate that Government Sponsored Entities no longer securitize any unsound mortgages.

The plan would call on the Securities Exchange Commission (SEC) to audit reports of failed companies to ensure that the financial standing of these troubled companies was accurately portrayed.

The blueprint would guarantee that Wall Street executives do not benefit from taxpayer funding.

The proposal would call on the SEC to review the performance of the credit rating agencies and their ability to accurately reflect the risks of these failed investment securities.

The working group recommends that Congress create a blue ribbon panel with representatives of Treasury, SEC, and the Federal Reserve Board to make recommendations to Congress for reforms of the financial sector by January 1, 2009.

09/26 11:15 AM


TOPICS: Breaking News; Business/Economy; Front Page News; News/Current Events
KEYWORDS: 2008; bailout; cocngress; economy; pelosi
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If this is a duplicate- please remove. It took me 10 minutes to get it posted with FR being so slow!
1 posted on 09/26/2008 8:35:06 AM PDT by SE Mom
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To: Jim Robinson; holdonnow; STARWISE; Bahbah; Miss Didi; Dog; Ernest_at_the_Beach; mewzilla; ...

GOP Principles and Letter ping


2 posted on 09/26/2008 8:38:08 AM PDT by SE Mom (Proud mom of an Iraq war combat vet)
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To: SE Mom

The only question to which Boehner is likely to get an honest answer from Pelosi is, “Madam Speaker, when and where do you want the Republicans to begin slitting their wrists?”


3 posted on 09/26/2008 8:42:20 AM PDT by RobinOfKingston (Man, that's stupid ... even by congressional standards.)
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To: SE Mom

Thank you for your diligence in posting.
And thank you for this info.


4 posted on 09/26/2008 8:42:27 AM PDT by donnab (some people use change to promote their careers...others use their careers to promote change.)
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To: SE Mom

What? I thought we were funding ACORN?


5 posted on 09/26/2008 8:43:27 AM PDT by Psycho_Bunny (By Obama's own reckoning, isn't Lyndon LaRouche more qualified? He's run since the 70's)
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To: SE Mom

It is time to fight, fight, FIGHT!!!!


6 posted on 09/26/2008 8:48:59 AM PDT by blf1776 (Compassionate Conservatism Is Dead)
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To: Psycho_Bunny

Not if the GOP has anything to say about it.

Remember- yesterday in New York McC said NO EARMARKS.


7 posted on 09/26/2008 8:49:26 AM PDT by SE Mom (Proud mom of an Iraq war combat vet)
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To: SE Mom

All congressional Republicans must get behind this proposal and oppose the Bush-0bama $700 Billion Bailout. Senator McCain should use the debate tonight to sell this alternative to the American people.

If Republicans, lead by Senator McCain, show a united front, they can get this passed and thwart the nationalization of investment risk.


8 posted on 09/26/2008 8:53:28 AM PDT by counterpunch (Jim Jones was a Community Organizer)
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To: SE Mom

Ya....I was being sarcastic.


9 posted on 09/26/2008 8:53:38 AM PDT by Psycho_Bunny (By Obama's own reckoning, isn't Lyndon LaRouche more qualified? He's run since the 70's)
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To: SE Mom

Thanks for the post. To me this is so much more constructive than just saying no to any plan. My only fear is that the grassroots Rublications (read most Freepers) will continue to resist this and we will either get no deal or a deal that has all kinds of Dem pork in it (like ACORN). I will be very interested in hearing the debate tonight!


10 posted on 09/26/2008 8:55:10 AM PDT by koraz
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To: SE Mom

Yep, if the Democrats inisit upon tying a millstone around someone’s neck, let it be their own.


11 posted on 09/26/2008 8:58:21 AM PDT by Hawk1976 (It is better to die in battle than it is to live as a slave.)
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To: koraz

Realistically- neither side is going to get all of what they want. The GOP is in the minority. That doesn’t mean we lay down and die. We call, call, call our Congressmen.

When I call mine today- I am telling them NO ACORN, NO LA RAZA, NO LABOR UNION earmarks. And.no mark to markup for value.

That continues one of the toughest nuts to crack- how to determine a fair price for these “assets”..


12 posted on 09/26/2008 9:03:49 AM PDT by SE Mom (Proud mom of an Iraq war combat vet)
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To: SE Mom
Look at these are newly proposed “safeguards” . Limiting taxpayer exposure to unsound mortgages? Auditing failed companies to make sure their books aren't cooked? Guarantee taxpayers don’t pay salaries/bonuses for Wall Street execs? Review credit rating agencies to make sure they’re honest/competent?
I really wish I could feel better about this but…

This only exposes the utter, complete contempt & disregard with which our government has viewed us. It’s nearly incomprehensible that these are “new” ideas.

And these are the people who want to reinvent our health care system?

13 posted on 09/26/2008 9:09:40 AM PDT by justkate
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To: SE Mom

“That continues one of the toughest nuts to crack- how to determine a fair price for these “assets”..”

The free market is the best determinant of fair price. List them on eBay.


14 posted on 09/26/2008 9:10:42 AM PDT by rightwingcrazy
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To: Psycho_Bunny

Funding ACORN and banning oil shale drilling. You know - important stuff that is intimately related to the bailout.

*cough*


15 posted on 09/26/2008 9:14:52 AM PDT by bolobaby
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To: koraz

Why would grassroots Republican and most FReepers, in your words, resist this plan? Especially when looking at the charity bailout alternative? Your post does not make sense to me.


16 posted on 09/26/2008 9:16:22 AM PDT by impeachedrapist (On Free Republic PBD [political bipolar disorder] rules!)
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To: rightwingcrazy

“List them on eBay.”

“Up for bids are a dozen Fortune 500 companies. Their value is unknown because they’re cooked their books for an indeterminate time, preferring to plow any “profits” into the pockets of their execs & various government officials. And the auditors they’ve hired to cover this up are all under investigation for fraud.”


17 posted on 09/26/2008 9:21:18 AM PDT by justkate
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To: SE Mom

I am so confused on what’s going on. Where does this 700 billion go? Does this money sit in some sort account and given out to the appropiate comapnies? Who is chage of giving out this money? Why not just let these people be able to re-finance their homes or adjust the payments to what it used to be so we can keep the 700 billion? What does this have to do with people’s savings, 401k’s ect?

Obviously I am not a finance major but there has to be a better “common sense” solution rather than throwing 700 billion at the problem? Also, people had better start going to jail over this debacle. Namely people like BARNEY FRANK FOR ONE!


18 posted on 09/26/2008 9:33:01 AM PDT by cups
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To: All
Okay, I'm not one with a strong grasp on economics, maybe someone can explain this to me:

I hear folks talking about rescuing people who took out irresponsible mortgages. How would this address that issue (hopefully, it won't)?

Owl_Eagle

There are people who are surrounded by bigots
and know it is wrong, but are afraid to be vocal against it.
These people are going to pull the lever for Obama
and they are not being polled.
angee_is_mad, DUmmy

19 posted on 09/26/2008 9:34:57 AM PDT by End Times Sentinel (In Memory of my Dear Friend Henry Lee II)
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To: koraz

The deal filled with pork and earmarks (including monies for ACORN) and the 700 billion bailout bill are two different bills. The first already passed.


20 posted on 09/26/2008 9:39:45 AM PDT by Nicole5
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