Yesterday, Americans for Prosperity sent the following "Key Vote Alert" to all U.S. Senators throughout the nation:
On behalf of more than one million Americans for Prosperity activists, I urge you to vote NO on the Motion to Proceed to S. 3217, the so-called Restoring American Financial Stability Act of 2010. The bill not only fails to address the underlying causes of the financial collapse but it shields many of the true culprits and institutionalizes “too big to fail” and Wall Street bailouts.
I urge you to vote NO on S. 3217, the Restoring American Financial Stability Act of 2010. Voting NO is a vote in favor of taxpayers. AFP will rate this vote in our congressional ratings.
The purported goal of this legislation is to address financial institutions that are too big to fail. However, it does no such thing. The proposed $50 billion resolution fund is a bailout fund that would supposedly allow the FDIC to wind down failing Wall Street firms in an orderly way. Not only is $50 billion a pittance compared what it will actually cost to resolve gigantic firms, but the FDIC is actually authorized to tap the Treasury for “up to 90 percent of the fair value of assets” of a failing firm. In other words, taxpayers will be on the hook for firms that are still too big to fail, even if the bailout fund is removed.
Additionally, the SEC charges against Goldman Sachs are actually a reason not to consider this legislation at this time. That’s because the scandal goes far beyond Goldman, implicating hedge fund manager John Paulson and housing non-profits that may have played a role in the creation and collapse of the bubble.
Paulson contributed $15 million to the Center for Responsible Lending, which for years pressured banks to issue risky subprime loans to less than creditworthy borrowers, then pushed for “cramdown” legislation that roiled mortgage markets. We need a full investigation into whether CRL shared information with Paulson about specific loans that he used to construct the CDO that made him more than $1 billion with the help of Goldman Sachs.
S. 3217 does nothing to attack the root causes of the housing bubble – Fannie Mae, Freddie Mac, and activists like CRL who forced banks to make risky loans. It actually rewards them by empowering them to run the Consumer Financial Protection Agency with sweeping new powers.
Americans for Prosperity will rate the vote on the Motion to Proceed to S. 3217, the Restoring American Financial Stability Act of 2010, in our congressional ratings. I urge you to vote NO and help me defend the American taxpayer.
Sincerely,
James Valvo
Government Affairs Manager
Americans for Prosperity
Click here to contact your U.S. Senators: http://capwiz.com/americansforprosperity/home/
Additionally, the SEC charges against Goldman Sachs are actually a reason not to consider this legislation at this time. That’s because the scandal goes far beyond Goldman, implicating hedge fund manager John Paulson and housing non-profits that may have played a role in the creation and collapse of the bubble.
Paulson contributed $15 million to the Center for Responsible Lending, which for years pressured banks to issue risky subprime loans to less than creditworthy borrowers, then pushed for “cramdown” legislation that roiled mortgage markets. We need a full investigation into whether CRL shared information with Paulson about specific loans that he used to construct the CDO that made him more than $1 billion with the help of Goldman Sachs.
S. 3217 does nothing to attack the root causes of the housing bubble – Fannie Mae, Freddie Mac, and activists like CRL who forced banks to make risky loans. It actually rewards them by empowering them to run the Consumer Financial Protection Agency with sweeping new powers.
Americans for Prosperity will rate the vote on the Motion to Proceed to S. 3217, the Restoring American Financial Stability Act of 2010, in our congressional ratings. I urge you to vote NO and help me defend the American taxpayer.
Sincerely,
James Valvo
Government Affairs Manager
Americans for Prosperity
Click here to contact your U.S. Senators: http://capwiz.com/americansforprosperity/home/
