Washington, D.C. -  Congresswoman Hilda L. Solis (CA-32) released the following statement today regarding H.R. 3997, the Emergency Economic Stabilization Act of 2008, legislation to address the crisis in the financial markets. This legislation failed to pass by a vote of 205-228.

Click here to see unemployment rates for the 32nd district.

Click here to see foreclosure rates for the 32nd district.

“Today, I voted against H.R. 3997, the Emergency Economic Stabilization Act (EESA), compromise legislation to bailout financial institutions saddled with large debts.  I am very concerned about the credit crisis created by the housing market meltdown and while I appreciate efforts of the Democratic leadership to work in a bipartisan fashion to improve the Bush Administration’s proposal, this legislation lacks needed taxpayer protections and assistance for Main Street families like those in the Congressional District I represent.

“I cannot in good conscience, vote for legislation that gives $700 billion to the same firms that helped cause the current financial crisis through irresponsible lending without providing meaningful help for homeowners who are in danger of foreclosure. In the 32nd Congressional District, housing foreclosures have nearly tripled in the past few months, with over 2,300 homeowners currently going through the foreclosure process.  The impact of such widespread foreclosures on our local economy and community is devastating. 

“Unfortunately, this legislation will not help the families who are stretching paychecks and trying to hold onto jobs without additional steps to stabilize our housing market. It lacks needed reform of bankruptcy laws to allow consumers to renegotiate the terms of their mortgage in bankruptcy courts to help keep their homes. Homeowners on Main Streets should have the same rights to renegotiate their loans, especially those for their primary residence, as Wall Street.

“Without addressing bankruptcy, provisions in the bill aimed at stemming foreclosures are not enough to provide real relief to struggling homeowners.  While the Bush Administration is working with congressional leaders to fast-track this legislation, they are indifferent to the Main Street economic stimulus bill passed last week by the House which I strongly supported.

“I was proud to vote for the Main Street economic stimulus bill, which would have extended unemployment benefits for the growing number of Americans looking for work.  In the 32nd Congressional District, unemployment has risen above 10 percent in many communities.  The bill also would have helped to sustain the safety net of services for our country’s neediest families by providing additional Food Stamp and Medicaid assistance.  It is incredibly disappointing that in the face of skyrocketing unemployment and increased need for food and healthcare assistance, the Bush Administration is instead prioritizing a huge cash infusion for Wall Street instead of needed investments for our country’s working families. 

“In these difficult economic times, we must come together as a community and help each other.  I have already hosted foreclosure seminars in my district and my constituents were able to take advantage of important information about the impacts of the current mortgage crisis and the importance of financial literacy in foreclosure prevention.  I plan to hold additional housing seminars so that our community has access to the resources they need to save their homes.  As this economic crisis continues to unfold, please be assured that I will continue working in Congress to obtain the real relief that our community greatly needs. 

“Congress and the Administration need to focus on real regulatory reform on Wall Street and real help for homeowners who face foreclosure.  We must enact bankruptcy court protections for foreclosures on primary residences.  We must pass comprehensive financial sector reform to restore integrity and stability to our financial system.  We must address the root of this financial crisis in order to prevent future problems. And we must grow jobs by investing in our nation’s infrastructure and funding green collar jobs training.

“These are the actions that Congress must take to produce widespread and meaningful reform in our financial sector, provide a lifeboat for the thousands of families facing foreclosure, and provide economic security for families across our nation.”

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