News release from
Barney Frank
_________________________________________________________
Congressman, 4th District, Massachusetts
2252 Rayburn Building · Washington, D.C. 20515 · (202) 225-5931
FOR IMMEDIATE RELEASE
June 11, 2008
CONTACT:
Peter Kovar (Frank) 202-225-5931
FRANK REFUSES TO HELP CSX ON FOREIGN INVESTMENT FIGHT
Congressman Uses Committee Chairmanship to Pressure Rail
Company Over Potential Liability Claims in Commuter Train Accidents
Congressman Barney Frank is using his position as Chairman of the House
Financial Services to press CSX Corporation to be more cooperative on a key
liability question that has slowed progress on planning for the Boston to
Fall River and New Bedford commuter rail project. CSX owns the rail lines
that would be used for the project, but is insisting that any proposed sale
to the state include a provision indemnifying CSX from future loss of life
claims, even if the company were found to be at fault.
Saying “why do I want to protect their right to screw my state?”, Frank
has pointedly refused to weigh in with federal regulators on behalf of CSX
in the company’s dispute with a group of English investors who are seeking
to unseat some members of the CSX board. The unusual confluence of regional
transportation policy and international finance has come about because the
Financial Services Committee has jurisdiction over laws relating to foreign
investment including the Committee on Foreign Investment in the United
States (CFIUS), a federal oversight body charged with investigating
potential national security threats associated with foreign investment in
U.S.-based companies.
“Given how uncooperative CSX has been on the commuter rail liability
question, I see no reason to help them out with their foreign investment
problem,” Frank said. “Their position that, as owners of the rail lines,
they will not accept liability for loss of life even if it’s their fault, is
creating a major obstacle to continued progress on the commuter project. I
am unwilling to assist them when they have been so unreasonable about a
crucial matter affecting my constituents and the citizens of Massachusetts.”
Though CSX has not directly asked CFIUS to look into the actions of the
English investors, the company has urged Congress to seek a CFIUS
investigation. A group of U.S. Senators recently requested a CFIUS review of
the matter.
|