Snowe Statement on House Passage of the Emergency Economic Stabilization Act
October 3, 2008
Washington, D.C. - U.S. Senator Olympia J. Snowe (R-Maine) released the following after House passage of H.R. 1424, the Emergency Economic Stabilization Act:
"Today the House followed the Senate in passing legislation that will stabilize the current financial crisis and restore some sense of normalcy to our economic system to revive commercial activity and investor confidence. This package, that the President will now sign, is the first of three phases essential to assure our economic recovery and future resilience. We must now demand accountability for those responsible and develop fundamental regulatory reforms to ensure this calamity is never repeated.
"Moving forward, Congress must restore transparency in all of our financial markets. Congress must also demand accountability for the massive malfeasance that’s been perpetrated on the American people – and the congressional pursuit through hearings must occur in tandem with the legal investigation and prosecution of those responsible for this meltdown.
"I championed the inclusion of provisions that require federal agencies to cooperate with the Federal Bureau of Investigations to investigate fraud and malfeasance with respect to the development, advertising, and sale of the financial products which created this systemic crisis. The pursuit and prosecution of those liable must receive the highest possible level of attention, and I will introduce legislation to form a dedicated office within the Justice Department whose sole mission is to ferret out the root causes of this catastrophe.
"Further, we must take the weeks ahead to draft bipartisan and bicameral legislation to eliminate systemic risk in financial markets and protect our economy over the long term. No longer can the U.S. financial industry act with impunity and make the highly speculative investments that have today jeopardized the health, stability, and growth of our economy.
Snowe also reiterated, "This rescue package includes strong protections, including the ability for American taxpayers to benefit from the appreciation in the value of financial institutions we are to assist because with the passage of this legislation comes the forceful responsibility to recover all of the costs of this program for taxpayers. To fulfill this mandate taxpayers are given an ownership stake in participating companies which ensures they will be first to profit when these companies recover. If, after five years, taxpayers have not been made whole, for the costs of this rescue, the President is required to act to recoup any shortfall from the companies which benefited from the Treasury’s actions.
"Furthermore, this package also clamps down on executive compensation with tough restrictions that will prevent corporate managers from profiting on the backs of taxpayers. It also provides necessary, timely, and crucial mortgage relief to families facing foreclosure, as well as extends critical energy tax incentives and a patch for the Alternative Minimum Tax to protect millions of middle-class American taxpayers."
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