Mr. President, I support the Emergency Economic Stabilization Act of 2008. While this compromise does not include all of what I wanted, we must enact this legislation in an attempt to protect our credit markets and our economy.

The Administration has not effectively informed the public on why this action is needed. The Bush Administration has so little trust and has been such a bad example of governance, I understand why so many people are skeptical. However, this is a time, where due to instability and deterioration of the credit markets, we must act. In addition, I value the expertise of the Federal Reserve Chairman Ben Bernanke. I have enjoyed working with the Chairman during his tenure. I agree with his assessment that the situation is as dire as he believes.

Banks and investment banks have failed. Credit has become harder to get. Uncertainty and anxiety are high. When Chairman Bernanke and Treasury Secretary Paulson came to us and explained how tenuous the credit markets are, I understood that we must avert further deterioration. It is clear that we must try and prevent the absolute collapse of the financial services industry, which would likely lead to an even more severe economic downturn, by enacting this bill quickly.

Access to credit is becoming much harder to obtain. Fewer car loans are being approved. Small businesses are finding credit to be much more expensive and harder to obtain. The State of Hawaii recently delayed the sale of bonds due to the poor market conditions.

Mr. President, our economy cannot function without access to affordable credit. Credit helps families buy homes or pay for their child's college education. Businesses rely on credit for operations and investments. State governments utilize credit to make much needed infrastructure improvements.

Without access to affordable credit, businesses will fail, more people will become unemployed, and our aging infrastructure will continue to deteriorate. We must enact this legislation to improve the likelihood of a swift economic recovery and try to avert a severe economic contraction.

Mr. President, the original Treasury proposal included no oversight and was not a well thought out proposal. It was offensive due to its lack of accountability and oversight provisions.

The purchase and sale of assets has great potential to be abused and lead to corruption. We must make sure that this situation, which has been caused partially by greed, will not be exploited to further enrich the individuals or corporations that caused this situation.

By working together with the Chairman, we have included more oversight and accountably provisions to prevent abuse, ensure proper management, and reduce conflicts of interest. The legislation includes additional reporting requirements to Congress, mandated audits of the program by the Government Accountability Office (GAO), and the creation of a special Treasury Inspector General to oversee the Troubled Assets Relief Program (TARP).

We will have to closely monitor this program through aggressive oversight by the Banking Committee and other relevant committees. The legislation establishes a Financial Stability Oversight Board to review and make recommendations regarding the exercise of authority by the Secretary of Treasury under this Act.

Although the Secretary is able to waive provisions of the Federal Acquisition Regulation (FAR), the Secretary would need to provide Congress justification for the determination that there are urgent and compelling circumstances that make such waiver necessary. This justification must be reported to the Committees on Oversight and Government Reform and Financial Services of the House of Representatives and the Committees on Homeland Security and Governmental Affairs and Banking, Housing, and Urban Affairs of the Senate within seven days of the request. Furthermore, if the Secretary waives any provisions of the FAR pertaining to minority contracting, the Secretary shall develop and implement standards and procedures to ensure the inclusion of minority contractors.

Furthermore, under this Act, the Secretary will be required, within two business days of exercising his authority, to publicly disclose the details of any transaction. It also requires the Comptroller General of the United States to conduct ongoing oversight of the activities and performance of TARP, report every 60 days to Congress, and conduct an annual audit of TARP. It would also establish the Office of the Special Inspector General for TARP. This office would be required to conduct, supervise, and coordinate audits and investigations of the actions undertaken by the Secretary and would report quarterly to Congress. This is very important, as we have found with the Special Inspector General for Iraq Reconstruction (SIGIR), the SIGIR has been instrumental in ensuring oversight of our efforts in Iraq. Establishing a similar office to oversee TARP is a critical component to monitor the actions approved by this Act.

Another important aspect of this proposal is that the authorization for TARP is graduated. The Secretary will be able to immediately access up to $250 billion, however, for an additional $100 billion, a Presidential certification would be needed. The final $350 billion could only be accessed if the President transmits a written report to Congress requesting such authority. However, should Congress pass a joint resolution of disapproval within 15 days of this additional authority, the additional authority given to the Secretary may not be used.

Mr. President, the Act also requires the Secretary of the Treasury to implement a plan to mitigate foreclosures and to encourage servicers of mortgages to modify loans through Hope for Homeowners and other programs. The Secretary would also be required to coordinate with other federal entities that hold troubled assets to identify opportunities to modify loans. I will continue to advocate for additional relief for homeowners so that people can stay in their homes.

Finally, Mr. President, we must reform the financial regulatory system to prevent future credit crises from occurring. A lack of effective regulation has contributed significantly to the current crisis. This legislation establishes a Congressional Oversight Panel to review the state of the financial markets, the regulatory system, and the use of authority under TARP. The panel is required to report to Congress every 30 days and to submit a special report on regulatory reform prior to January 20, 2009. A comprehensive set of hearings will need to be conducted by the Banking Committee during the next session to determine what regulator reforms will be necessary to ensure that future federal intervention of this magnitude will not be necessary.

In closing, this is not a perfect bill, but a necessary one to protect access to credit and ensure that working families can access mortgages and student loans. It is needed so that businesses can access credit to pay their expenses and fund expansion. This Act is needed to help ensure that State Governments can afford to finance necessary infrastructure improvements.

I thank Senator Dodd for his leadership in helping craft this proposal. I also greatly appreciate the efforts made by Senators Reid, Schumer, and Reed. I look forward to continuing to work with them and the other members of the Banking Committee to oversee and improve the troubled asset program.

Thank you, Mr. President.