This week Congress may consider a bill dealing with reforms to our Financial Regulatory system. Clearly, reforms need to be make, but unfortunately the bill the Democrats have compiled bears a striking resemblance to the health care bill passed three months ago in that it's 2,000 pages of bureaucracy in which the people who wrote it don't even know what's in it. In fact, Senator Chris Dodd (D-CT), the man most responsible for crafting this piece of legislation had this gem to say about the bill:
“‘No one will know until this is actually in place how it works.’”
If you want to be serious about financial regulatory reform, you've got to be willing to address Fannie Mae and Freddie Mac, two entities who were the driving force behind our economic downturn these past couple of years. Sadly, Democrats went so far as to reject a series of amendments offered by Republicans to put an end to, or even limit, taxpayer-funded bailouts, including those for government sponsored enterprises Fannie Mae and Freddie Mac.
The Republican Study Committee has compiled a very informative summary highlighting the shortcomings of this legislation:
* Winners and Losers – Instead of using and enhancing existing legal structures like the bankruptcy process, the bill gives the same regulators, who failed to see the current crisis forming, broad new powers to takeover and break up private companies. The Executive Branch would have every opportunity to abuse these powers to pick winners and losers for political reasons.
* Taxpayer Bailouts – Taxpayers will pay the costs of these takeovers upfront out of the Treasury. This taxpayer bailout is supposed to be paid back later by other financial firms, but the costs could quite conceivably rise to trillions of dollars – making repayment out of the question.
* Consumer Restrictions – The bill creates a new agency with jurisdiction over all sorts of financial products offered by banks and non-banks (i.e. Sears or your local mechanic): credit cards, installment plans, mortgages, other loans, check cashing services, etc. In an effort to “protect” consumers from their own decisions, Democrats will make credit more inaccessible for families and entrepreneurs across the country.
* Hoarding Capital – While banks need to keep their reserves at responsible levels, the stringent new leverage restrictions – chosen by politicians – will leave even credit-worthy consumers struggling to get a loan.
* Fannie Mae and Freddie Mac – Who? Despite their intimate involvement in the financial meltdown and their perpetual taxpayer bailout ($145 billion and counting), the bill neglects to make much-needed reforms to these failed and insolvent entities.
Bachmann Office Coming to a Town Near You
My staff regularly holds Mobile Office Hours at locations all across the district. These are opportunities for you to come meet one on one with someone from my office who is trained to be your liaison with federal agencies. Please bring copies of any paperwork that you might have with you when you visit. Particularly, if you are having a problem with a federal benefit or program and have letters or documents that might help my staff get answers for you quickly.
You can find a complete schedule of my Mobile Office Hours on my website.
The next Mobile Office Hours will be held on the following dates in the following locations:
Thursday, July 8
--9:00 am to 10:30 am:
Howard Lake City Hall
625 8th Avenue
--11:30 am to 1:00 pm:
Annandale City Hall
30 Cedar Street E
--1:30 pm to 3:00 pm:
Clear Lake City Hall
7684 1st Avenue W
--4:00 pm to 5:30 pm:
St. Michael City Hall
3150 Lander Avenue NE
Tuesday, July 13
--10:00 am to noon
Washington County Library, Hardwood Creek Branch
19955 Forest Road N, Forest Lake
--1:30 pm to 3:30 pm:
Andover City Hall
1685 Crosstown Boulevard NW
Also, please take a moment to visit my website (www.bachmann.house.gov) and sign up for my regular telephone town halls as well. That technology allows you to speak with me from the comfort of your own home. You’ll get an update on what Congress is doing that might impact you and have the opportunity to ask me a question about what’s on your mind.
Don't forget to follow my Facebook and Twitter accounts as well
Wednesday, June 30, 2010
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