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
Paulson also hired Obama supporters (Dems) as his two chief assistants after getting the job. I think Paulson should be investigated about his role in all of this.
Bush’s stand to back Paulson against the GOP speaks volumes about why some of us are so disgusted with this President.
BTTT for reference
BTTT!
Don’t give up and fall for the Dems propaganda everyone! This is NOT OVER!
(Thank you for posting this as its own thread, and for the ping on the other thread!)
:) You’re quite welcome!
FOX reporting emails from viewers LOVE the House GOP standing firm.
Blunt says we want more free-enterprise provisions etc- and if the Dems insist on the bill as it is- it’s their bill and we’re not voting for it..
This plan is MUCH different than the completely socialist taxpayer-funded, earmark and pork-laden Paulson bill it’s astounding!
I have been one of the most stubborn and outspoken critics here the last few days. HOWEVER, if something is going to be done, I would MUCH rather it be this than the Paulson plan! THIS I could find myself supporting...
Cutting taxes, Private Funding, Oversight, and Responsibility laid back on the COMPANIES, and not turning the government into one huge corporation! Maybe I’m missing something here, but I’m not disliking this.
As I understand it, part of the problems that led to this crisis was the fact that there was no oversight. There was no-one watching these companies. McCain tried numerous times to get oversight passed into law, but his bill(s) were blocked in committee by the Dems and not even DISCUSSED or debated!
This does NOT use taxpayer dollars to finance any bailout...
And as far as the healthcare “remodel” — that is NOT the Republicans! THAT is the Democrats. THEY are the ones pushing for SOCIALIZED medicine financed, again, by our tax dollars.
I don’t really understand where you are coming from saying that these are not new ideas. This is a 180 degree turn around from the COMPLETELY taxpayer funded Paulson plan.
I also don’t understand how these provisions show contempt for the taxpayer — they are trying to STOP the Democrats from passing the bill that COMPLETELY takes our tax dollars, rewards the criminals in this, and also gives MILLIONS to left-wing organizations. THAT is contempt for the taxpayer. The House Republicans are trying to STOP that from happening with these ideas. If they are so dang intent on passing SOMETHING, I would MUCH rather it be these provisions than ANYTHING in the Paulson plan!
Are you sure about that? I had heard numerous times over the last day or so that the ACORN financing was to come out of the “returns” taxpayers were supposed to get as a result of the 700 Billion buying up these bad mortgages. That was part of the reason (besides it being left wing organizations) that people were so ticked about it. The Dems were already spending the supposed return we (taxpayers) were supposed to earn in the Paulson plan...
I do know there was a 650 Billion dollar spending bill passed the other day (nice, eh?), but if I’m not totally mistaken the ACORN funding is DIRECTLY tied to the Paulson Plan.
Is there any possible way we can get this thread moved to Breaking News?
People are reading DeMint’s propaganda and freaking out... Some are even thinking the Paulson plan has ALREADY PASSED! *smacks forehead*
We need to get the word out that the House GOP has NOT given up, and the Democrats are trying to break us down with their propaganda. (another fact is that my own Democrat representative is NOT on board with this plan - David Obey (D-WI), so it just points more to the fact that the Democrats are lying about how much support they really have...).
Thanks for considering this. I hate to see FReepers lose heart listening to the socialist’s lies...
My apologies, I see that it is indeed already there. (Gosh do I feel silly now...)
*DeMint’s Propaganda should’ve been the DEMS propaganda! Time for a break! LOL
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