Schakowsky Statement on Financial Rescue Negotiations

SCHAKOWSKY STATEMENT ON FINANCIAL RESCUE NEGOTIATIONS

Washington, D.C.–U.S. Representative Jan Schakowsky (D-IL), a Democratic Chief Deputy Whip, released the following statement today about the ongoing negotiations over the Bush Administration's request for a $700 billion bailout of Wall Street.

"As a freshman member of the House Financial Services Committee, I was one of only 57 Members of Congress to vote against the Gramm-Leach-Bliley Act in 1999. That legislation set in motion the crisis that we are facing today by deregulating the financial services industry and removing consumer protections. At the time, I said 'banks, insurance companies and securities firms are the winners and working class communities and consumers are the losers.' Nine years later, we are seeing the impacts of that bill coupled with eight years of failed economic policies under the Bush Administration.

Before we address the crisis on Wall Street, we have to address the crisis on Main Street. Millions of Americans are on the verge of losing everything as the cost of health care, energy, and food continues to increase while wages and employment decrease. The Bush Administration didn't care about the financial problems facing hardworking Americans until this crisis "trickled up... to Wall Street. Even now the Bush Administration would rather bail out Wall Street and its CEOs than provide relief to real Americans who are struggling to scrap together enough money to feed their families, fill up their tanks and keep a roof over their head. President Bush has the wrong policy and the wrong priorities.

The President is asking Congress and the American public to give astonishing new powers to his administration — to turn over $700 billion to his Secretary of the Treasury — a former Goldman Sachs executive — to spend however he chooses with no oversight — regulatory or judicial. After the policies of the last 8 years, the American people know the Bush Administration is not worthy of that level of trust. And there is no way on earth I'm going to give President Bush a blank check to bail out Wall Street. We must act to protect our economy but not with a bailout package that leaves the American people with nothing but risk and Wall Street CEOs everything to gain.

We will not be steamrolled by this White House into acting irresponsibly or being bullied into meeting artificial deadlines. My constituents are fed up with the Bush economic policies. They are calling, faxing, writing and emailing me to ask that I stand up for them not Wall Street. Like my constituents, I will oppose any package that does not protect the American taxpayer or that rewards the CEOs whose greed and irresponsibility created this horrible financial disaster. Any action we take must protect workers and consumers, homeowners and small businesses. The days of golden parachutes must end and taxpayer dollars should not be spent on exorbitant executive compensation packages. We must restore strict oversight and public accountability before a penny of taxpayer money is spent to rescue any financial firm and we must provide tough regulatory authorities to regulators committed to using them.

Congress and the incoming Administration will face the enormous challenge of putting the American economy back on track. The first step is to abandon the Bush policies, restore accountability and put the interests of the American people first....