10/01/2008
WASHINGTON, D.C. – Sen. John Kerry voted this evening to support legislation preventing taxpayers from being hit by the financial meltdown on Wall Street. Notably, the bill included a provision to prevent thousands of Massachusetts families from being unfairly affected by the Alternative Minimum Tax (AMT.) It also included the senator’s provisions to freeze giveaways for Big Oil and prevent hedge funds from deferring compensation offshore.
“This is time for action, not partisanship,” said Sen. Kerry. “This deal will help restore our capital markets and financial institutions. The stark reality we face is that without federal assistance, our financial system may collapse. Small businesses would be unable to obtain financing and jobs would vanish. Families would be unable to borrow for new homes or to send their children to college. Retirement funds could plummet. Those are the stakes. The Congress must come together to enact legislation to help give confidence in America’s economy back to the American people.”
Senator Kerry also supported the increase of insurance caps from $100,000 to $250,000 to protect savings and checking deposits. The Senator hopes the increase of the Federal Deposit Insurance Corporation caps (FDIC) will help restore confidence among American’s concerned with the state of their families’ commercial bank.
Below is the senator’s floor speech from earlier this evening as prepared for delivery:
“Mr. President, this has been a volatile time for our financial system and our economy. I strongly support the legislation we are considering today to help restore the strength and stability of America’s financial system and overall economy. The enactment of this plan, along with recent steps taken by the Treasury Department and Federal Reserve, represent a critical step toward addressing the current crisis.
“We are considering today is designed to stop the ripple effect of the collapse of Wall Street’s major financial institutions from developing into an economic Tsunami sweeping across the country. The stark reality is that without federal assistance, our financial system may collapse.
“A recent federal survey reports that more than 65 percent of banks have significantly tightened their lending standards for small businesses. This legislation will help provide capital for small businesses in Massachusetts and around the Nation so they can continue to create jobs and help expand our economy.
“Everyday, approximately 10,000 more homes are going into foreclosure. Five million homeowners, almost one in every 11 homes either in default or in foreclosure, the highest level since 1979. This legislation will help provide the additional mortgage credit we need to help ease housing crisis.
“Every year, families are faced with paying for their children’s college education. This will help families get the student loans they need to get their children through college.
“These are the stakes and the reasons why I support the compromise legislation to provide up to $700 billion to the Secretary of the Treasury to buy mortgages and other assets from financial institutions. Thank you, Chairmen Dodd and Baucus, for your leadership in rewriting the Paulson proposal to be acceptable to this body and to the American people. Specifically, the legislation:
- Requires the Treasury to modify the loans they buy to help American families keep their homes and expands federal assistance to families facing foreclosure;
- Includes strong Congressional oversight, establishes a special Inspector General and allows Judicial review of the program;
- Requires companies that take advantage of this program provide warrants so taxpayers will benefit from any future growth of these companies;
- Includes important limitations on executive compensation for those participating in the program;
“I urge the Senate to come together to enact legislation to protect our vital national interest in the continued health of our economy.”
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