Tsongas Statement on Her Support for the Financial Rescue Plan

WASHINGTON, DC - September 29, 2008 - Congresswoman Niki Tsongas today released the following statement regarding her vote for the financial rescue package, the Emergency Economic Stabilization Act of 2008.

"Today was a very consequential day. 

"Ten days ago, the Treasury Secretary, Chairman of the Federal Reserve, and economists from across the political spectrum warned us all of the very serious crisis in the credit markets that could have a devastating impact on American taxpayers.  Most immediately, as the ability to access credit disappears and our economy slows, they warned that employers might not be able to provide payroll to their employees, others may lose their job, may be unable to get loans for their business, may not be able to access credit, may not be able to send their kids to college, or may no longer be secure in their retirement.  I took all of these concerns very seriously.

"Following that warning, President Bush and Treasury Secretary Paulson presented a plan that was far too much about Wall Street and did not go far enough to protect the people I represent.  My colleague Barney Frank and members of both the Democratic and Republican leadership took that proposal and inserted Democratic values to protect our constituents. 

"While far from perfect, the plan they crafted does include limits on taxpayer exposure.  Instead of granting the Treasury the right to immediately spend $700 billion, the bill would make $250 billion available with an additional $100 billion released upon certification that funds are needed; an additional $350 billion would be authorized but its release would be subject to ongoing Congressional approval.  The compromise legislation provided taxpayers with the potential upside of this investment by requiring companies who participate to share a portion of their equity with the government.  This provision in essence gives taxpayers a right to some of that company’s resulting profits.  The bill also ensures that taxpayers receive a profit from the sale of any assets purchased under the program. 

"In deciding how I would vote today, I fundamentally believed that the warning that I heard last Thursday, and reinforced over the course of the past week, was critical and called us to act.  I was persuaded that the consequences of inaction were too grave, which is why I supported the bill today.  Clearly, many of my colleagues did not agree with that, and now we must go back to the drawing boards.

"The failure of today's vote does not change the need for action; it highlights it.  The market lost approximately $1 trillion today, a staggering figure which represents ordinary American's pensions, savings, and retirement funds.  The enormity of this fallout compels bipartisan work and compromise on this legislation.  We will continue to keep working in a bipartisan way, in coordination with the Bush administration, to come up with a solution to alleviate this crisis."

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