Neil's Spotlight Continuing Coverage: House investigates financial meltdown
October 7, 2008
The House has begun investigating the financial markets crisis. Hearings began on October 6 and 7. Next hearing: The House Committee on Oversight and Government Reform will examine the regulation of hedge funds on Thursday, October 16, 2008, 10:00 AM at 2154 Rayburn House Office Building.
The House Education and Labor Committee heard witnesses tell an Oct. 7th hearing that American workers have lost up to $2 trillion in retirement savings over the last year.
Abercrombie on financial rescue bill The first day of hearings was Monday, October 6, two days after the House passed an amended financial rescue bill. Rep. Abercrombie voted against the first bill but supported the amended bill because, in part, it provided for greater protection of taxpayers' interests. On the day of the vote, he said:
"The Senate bill that we are considering today offers improvements and protections beyond the original House bill for individual taxpayers: it increases FDIC’s coverage from $100,000 to $250,000 per individual account holder; provides opportunity for additional help with mortgages, and offers income tax relief for 91,000 Hawaii households.
"This Senate bill will provide some breathing room to address the underlying challenges to the financial system. However, I will urge Speaker Pelosi to bring the House back into session immediately after the November election to enact the specific systemic reforms outlined in two bills I have cosponsored (H.R.7125 and HR 7240), reforms not adequately addressed in the Senate legislation. These changes, along with energy independence, will be my top priorities for Congressional action as soon as possible."
Pelosi issues statement Following the first day of hearings on October 6, 2008, House Speaker Nancy Pelosi issued this statement:
Pelosi: Congress Uncovering Excesses of Wall Street While Pushing President on Economic Recovery Plan
Washington, D.C. – Speaker Nancy Pelosi released the following statement today on the sweeping Congressional investigation of the financial crisis and the need for the President to work with Congress to pass an economic stimulus and job creation package:
“Last week’s enactment of the emergency rescue law is only the beginning of uncovering what went wrong due to deregulation and no supervision of our financial system. We will work diligently to develop common sense reforms and to change the way Wall Street is held accountable.
“Congress will build on our work to insulate Main Street from Wall Street. The House has already passed an economic recovery and job creation stimulus package that helps families struggling to find work and afford basic living expenses in this tough economy. We need the President to join this effort by supporting the package and calling on Republican senators to end their opposition to its consideration in the Senate. While Congress will uncover the excesses of Wall Street in the coming weeks, we will continue to push the President to accept solutions that will bring relief to millions of Americans struggling in today’s economy.”
“A critical first step was today’s hearing by the Oversight and Government Reform Committee into the failure of deregulation, how it resulted in unprecedented government intervention in our financial markets, and the role of hedge funds and credit rating agencies in the run-up to the financial crisis. Other House Committees will examine how regulators and business leaders compromised the public interest and the nation’s retirement security.”
