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WASHINGTON, D.C. – Senator Joe Lieberman (ID-CT) today voted for and strongly supported the Senate’s passage of the Emergency Economic Stabilization Act. “This evening, the Senate took a meaningful step toward reversing the current economic crisis while protecting the interests of American taxpayers,” said Lieberman. “Restoring confidence in our financial system is critical to all Americans. Workers rely on the markets for their retirement security, and for the financing of their homes, their cars, and their children’s college tuition. Small and large businesses rely on the credit markets to keep their companies running and their employees paid. The Senate’s bipartisan vote sends a clear signal that the time has come to set aside partisanship and act in the nation’s interest by sending this critical legislation to the President as soon as possible.” Senator Lieberman also applauded Congressional negotiators for including a modified version of a proposal he and Senator Maria Cantwell (D-WA) initiated to create a National Commission on Financial Regulatory Reform in the federal financial rescue package. The final legislation establishes a new bipartisan oversight panel consisting of five private-sector members appointed by the Congressional leadership. In addition to performing oversight of the Troubled Asset Relief Program, the panel will study and report to Congress with specific recommendations for improving the state of the financial regulatory system. “The current financial regulatory regime was constructed in the aftermath of the Great Depression, and it desperately needs reexamination and reform in order to prevent a repeat of the current crisis,” said Lieberman. “Going forward, we must be take steps to ensure that we never again find ourselves in the same position – where Main Street taxpayers are bailing out Wall Street financial institutions. The bipartisan panel will help set forth a roadmap for fundamental reform.” Specifically, the bipartisan panel is directed to submit a special report on regulatory reform approximately four months after enactment (not later than January 20, 2009). The report will analyze the current state of the regulatory system and its effectiveness at overseeing the participants in the financial system and protecting consumers. The report will provide comprehensive recommendations for improving our financial regulatory structure. The panel is charged with considering whether any participants in the financial markets that are currently outside the regulatory system should be brought under our regulatory framework, and whether there are any gaps in existing consumer protections. Last week, Senators Cantwell and Lieberman urged Congressional leaders to jumpstart reform of the financial regulatory system, investigate the root causes of the current crisis, and hold reckless parties accountable by incorporating their specific proposals. The Senators asked negotiators to create a National Commission on Financial Regulatory Reform, establish a special joint Congressional oversight committee to investigate the causes of the current financial market meltdown, and initiate a joint investigation and report by a task force of Inspectors General responsible for financial markets oversight. For several months, Senators Cantwell and Lieberman have been working with their colleagues to advance legislation to improve the transparency and oversight of currently unregulated other-the-counter derivative markets, in particular, the markets for commodity swaps and other complex financial instruments. The current financial crisis highlights and renews the importance of ensuring that financial markets function in a transparent and orderly fashion. – 30 –
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