FOR IMMEDIATE RELEASE September 28, 2008

Contact: Annie Boehnke Washington Press Secretary (202) 225-1640

CONGRESSMAN HENRY CUELLAR WANTS TO HEAR FROM YOU

This weekend Congress is in session working to improve the financial rescue proposal that U.S. Treasury Secretary Henry Paulson announced one week ago. Since last week, Democrats and Republicans have been working together with the Administration to improve the President’s plan.    

Congressman Cuellar wants to make available to his constituents the latest information on the improved legislation, and he wants to hear your thoughts. Please take a moment to read the following update from the House of Representatives and immediately let Congressman Cuellar know your opinion by clicking here.

Financial Rescue Legislation

Significant bipartisan work has built consensus around dramatic improvements to the original Bush-Paulson plan to stabilize American financial markets—including cutting in half the Administration’s request for $700 billion and requiring Congressional approval for future payments.

CRITICAL IMPROVEMENTS TO THE RESCUE PLAN

Protection for Taxpayers, Ensuring They Share in any Profits

·         Cuts the payment of $700 billion in half and conditions future payments on Congressional review

·         Gives taxpayers an ownership stake and profit sharing of participating companies

·         Puts taxpayers first in line to recover assets if participating company fails

·         Allows the government to purchase troubled assets from pension plans, local governments, and small banks that serve low and middle income families

Limits on Excessive Compensation for CEOs and Executives

·         New restrictions on CEO and executive compensation for participating companies

·         No multi-million dollar golden parachutes

·         Limits CEO compensation that encourages unnecessary risk-taking

·         Recovers bonuses paid based on promised gains that later turn out to be false or inaccurate

·         No tax deduction for executive compensation over $400,000

·         Requires Shareholder vote on executive compensation for companies participating in the financial rescue

Strong Independent Oversight and Transparency

·         Four separate independent oversight entities or processes to protect the taxpayer

·         A strong oversight board, appointed by bipartisan leaders of Congress, can overturn Treasury decisions

·         A GAO presence at Treasury to oversee the program and conduct audits to ensure strong internal controls, and to prevent waste, fraud, and abuse

·         An independent Inspector General to monitor the Treasury Secretary’s decisions

·         Transparency—requiring posting of transactions online—to help jumpstart private sector demand

·         Meaningful judicial review of the Treasury Secretary’s actions

Help Prevent Home Foreclosures

·         The government will have the power to change the terms of mortgages (reduce principal or interest rate, lengthen time to pay back the mortgage) to help reduce the 2 million projected foreclosures in the next year

·         Extends provision (passed earlier in this Congress) to stop tax liability on mortgage foreclosures

·         Helps save small businesses that need credit by aiding small community banks hurt by the mortgage crisis—allowing these banks to deduct losses from investments in Fannie Mae and Freddie Mac stocks

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Congressman Henry Cuellar is a member of the House Homeland Security, Small Business, and Agriculture Committees in the 110th Congress.  Accessibility to constituents, education, health care and economic development are his priorities. Congressman Cuellar is also a Senior Whip.