Washington, DC -- Congressman Kenny Marchant issued the following statement today after voting against HR 1424, the Emergency Economic Stabilization Act of 2008:

"Today, I voted no on legislation to give the federal government a check for $700 billion and raise our national debt limit from $9.8 trillion to $11.3 trillion this year alone. I worked for and would have supported a free-market alternative plan to provide reassurance to the American people, restore confidence in the financial markets, and provide checks and balances.

The alternative legislation I supported was not allowed to be considered or even debated. This alternative called for an increase in the FDIC limit to $500,000, a change in mark-to-market accounting rules, and, most importantly, a mandatory “Illiquid Asset Insurance Program” that would work as an alternative to the $700 billion buyout program at NO COST to the taxpayer. This program would be funded by premiums collected by participating companies. This proposal is based on the premise that the value of many of these “illiquid assets” is extremely low only because of the panic in the market, and that these fire sale prices have no relation to the true value of the underlying securities. An insurance program such as this would help restore confidence and bring the prices of these securities back up to their true values.

Fifteen days ago, Treasury Secretary Henry Paulson met with Members of Congress and outlined his need for a $700 billion rescue package for our troubled economy. And since that time, I have received 2,975 letters, emails, and phone calls on this issue. If you wrote an email or a letter, please know I read every one. The country is divided on this issue, not as Republicans or Democrats, but on what each of us believe is in the best interest for the United States of America.

I have always said we must do something. Inaction was never an option, but we needed to make sure we did the right thing. After I was informed alternatives would not be considered, I advocated, pushed for, and fought as hard as I could for a stepped approach rather than committing $700 billion up front. Secretary Paulson stated publicly and under oath that he could only spend $50 billion per month, therefore a total outlay of $700 billion up front was risky and premature. 

Today’s vote was without a doubt the most important vote during my career in public service. The bill passed 263-171 and became law minutes after passage with the signature of the President. Though I sincerely believe this is not the solution to the problem, it is my hope that the plan will work.

As a member of the House Financial Services Committee, which has jurisdiction over financial institutions, consumer credit, capital markets, insurance, and housing issues, and the House Oversight & Government Reform Committee, I will continue to fight for stringent oversight and accountability as this legislation is implemented.

I have also included a link to an accurate and critical analysis that explains the situation our economy is in and invite you to thoroughly read it through at your convenience. The link is: http://www.house.gov/budget_republicans/press/2007/pr20081002econ.pdf."

                                                                                                                                Sincerely, 

                                                                                                                                Kenny Marchant
                                                                                                                                Member of Congress
 

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