http://cornyn.senate.gov/public/index.cfm?FuseAction=ForPress.NewsReleases&ContentRecord_id=baf3357e-802a-23ad-4c79-5e180a848221Explains his position on the vote...
Editing to add his comments inc ase you cant get it to load:
WASHINGTON—U.S. Sen. John Cornyn, R-Texas, a member of the Senate Budget Committee, made the following statement this evening regarding his support for the Emergency Economic Stabilization Act.
“Over the last several weeks, we have been presented with a complex and difficult choice about how to repair our faltering economy and prevent a very serious financial collapse. Like many Texans, I am incredibly frustrated and angry that we find ourselves in this situation.
“Those who got us into this economic mess must be held accountable. Heads ought to roll starting with the Wall Street executives who engaged in irresponsible, risky, and perhaps even illegal conduct. That is why I’ve called on the Attorney General to conduct a swift and immediate investigation. I will also insist that the Department of Justice and FBI have all the necessary resources to investigate and hold responsible those who broke the law.
“Congress should also hold itself accountable. More than two years ago, a group of Senate Republicans, including myself, recognized the precarious financial situation of Fannie Mae and Freddie Mac, and tried to pass real reforms that would protect taxpayers. Unfortunately, our efforts were blocked by partisan politics and backroom deals. That was unacceptable then, and it’s unacceptable now. With passage of this economic rescue bill, Congress must now work together on bipartisan economic reforms to prevent this from ever happening again.
“But right now, we cannot allow taxpayers, families and small businesses in Texas to pay the steep price of inaction. A widespread financial collapse will have a domino effect throughout our State. It might begin on Wall Street but it will ultimately hit Texas families and small businesses the hardest. This is not a theory or hyperbole or a scare tactic. It is a fact.
“If credit markets freeze, local banks will be unable to provide loans for small businesses, which are the backbone of our economy. I’ve heard from small business owners across Texas in recent days and already credit is disappearing while interest rates are rising. As small business budgets tighten, paychecks for workers will be in jeopardy, and families across Texas may be unable to pay their bills, send their kids to college or even put food on the table. We cannot allow this to happen.
“Like most Texans, I’m always wary of bills that include little accountability and transparency. The President’s initial three-page proposal that gave the Treasury Secretary unlimited authority to spend up to $700 billion was unprecedented and absolutely unacceptable. That is why Republicans and Democrats in Congress worked together to make a number of improvements. This bipartisan bill provides greater management oversight and transparency, limits executive pay and eliminates golden parachutes, and places strict conditions on the use of taxpayer money. It also extends expiring tax relief for families and businesses, including the state and local sales tax deduction, which effectively provides Texans with more than a billion dollars in annual tax relief. Incentives for energy conservation and renewable energy, and a provision to keep the Alternative Minimum Tax (AMT) from hitting millions of middle-income Americans this year are in the bill as well. Finally, it includes critical tax relief measures for those communities in Texas that were hit hardest by Hurricanes Ike and Dolly.
“As I said, I am as angry and frustrated as anyone by the current situation, but the cost of inaction is too great. The retirement accounts, college education funds, and budgets of families across Texas are at stake.”
BACKGROUND:
The 451 page economic rescue bill passed by the Senate this evening is a markedly different bill than the 3 page proposal initially put forward by the Administration which gave the Treasury Secretary near unilateral authority. Among the new oversight, management and transparency provisions included by Congress are:
Greater Management Oversight:
The bill creates an oversight board that consists of the Federal Reserve Chairman, Treasury Secretary, SEC Chairman, HUD Secretary, the Chairman of the National Credit Union Administration Board, and the Director of the Federal Home Finance Agency. This board will meet monthly to oversee the program;
It also creates: (1) a new Inspector General for the program who is required to submit a quarterly report to Congress; (2) a Congressional Oversight Panel to review the current state of the financial market.
The bill also provides for judicial review of Treasury’s actions.
Limits on Executive Pay and Golden Parachutes for Participating Companies:
Curtails the ability of participating firms to deduct compensation paid to high-paying executives;
Penalizes participating firms who provide a golden parachute to their employees and disallows golden parachutes for the top 5 executives in the future.
Protects Taxpayers Money:
After five years, if the program is losing money, the bill requires the Executive Branch to make a proposal to recoup the loss from those who participated in the rescue program;
Forces Treasury to report to Congress if they need the full amount and allows Congress to put the breaks on the program, which is temporary;
Requires continuous auditing by the Government Accountability Office, which is the nonpartisan, investigative arm of Congress;
Prohibits “unjust enrichment” – a participating institution will not be able to sell an asset to the Treasury for more than they paid for it;
Any government profits will go straight to paying the debt and not for new government programs or pet projects.
More Transparency:
Requires Treasury to publicly disclose the details of all transactions;
Monthly Reports on the program are required;
Supplemental reports are required whenever Treasury makes a $50 billion commitment to purchase troubled assets. These reports must detail each of the agreements made, any insurance contracts, the nature of the assets purchased, and all projected costs and liabilities. Sen. Cornyn serves on the Armed Services, Judiciary and Budget Committees. In addition, he is Vice Chairman of the Senate Select Committee on Ethics. He serves as the top Republican on the Judiciary Committee’s Immigration, Border Security and Refugees subcommittee and the Armed Services Committee’s Airland subcommittee. He served previously as Texas Attorney General, Texas Supreme Court Justice, and Bexar County District Judge.
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