News Release:

WASHINGTON, DC—Despite disapproval and serious misgivings with the changes made by the Senate, Congressman Allen Boyd (D-North Florida) today voted for the Economic Rescue Plan (HR 1424) in the House of Representatives in order to avert a financial crisis, stabilize the financial markets, and protect the American taxpayers. Earlier this week, the Senate added $152 billion in tax relief to the rescue plan, of which $110 billion was not paid for and must be borrowed.

“Not paying for our priorities is a large part of what got us in this financial mess in the first place,” said Congressman Boyd. “Instead of working to make a better bill, the Senate has made our financial situation even worse. It defies all logic that the Senate would effectively compound our financial problems in a bill that is meant to avert a financial crisis. This bill – possibly the most important bill that many in Congress, including myself, will ever have to vote on – deserved to be considered on its own merit and should not have been loaded down with other priorities. Unfortunately, the Senate did not give us that choice.”

“While I am extremely displeased with the Senate’s fiscal irresponsibility, our financial and economic outlook has not changed – we are still staring down a disastrous financial situation that requires action,” Boyd said. “The intent of this financial rescue plan is not to bail out Wall Street; it is to protect the regular folks and businesses in North Florida and around the country that depend on loans and lines of credit from banks. If we experience a financial meltdown, we will not have access to home, car, and student loans, regardless of whether we invest and even if we have not made bad decisions in our own personal finances. That is an unacceptable situation and one that would crush the American Dream.”

The Economic Rescue Plan would give the Treasury Department the authority to borrow $350 billion to purchase troubled assets, which it would sell at a later date. The Treasury Department would be provided an additional $350 billion, if needed, only after Congressional authorization.

More importantly, the Economic Rescue Plan includes a provision championed by Congressman Boyd and the Blue Dog Coalition to recoup possible taxpayer losses. The Blue Dog recoupment provision directs a future President to deliver a plan after five years to recover any potential remaining costs from Wall Street firms, not the taxpayers.

The Economic Rescue Plan also:

Limits excess compensation for CEOs and executives and recovers bonuses paid to executives who promise gains that turn out to be false or inaccurate.

Includes four separate independent oversight entities or processes to protect the taxpayer, such as the establishment of a new Special Inspector General within the Treasury Department.
Increases the FDIC deposit insurance limit from $100,000 to $250,000 through 2009.

“I know that many of my constituents are angry, and so am I,” said Boyd. “While many may disagree with my vote in support of the financial rescue package, I owe the people of North Florida my best judgment, and I believe that a vote in support of the financial rescue plan, despite its flaws, to be in the best interest of the people and businesses in North Florida. The consequences of doing nothing would be disastrous for the people and for our country.”

“We have serious challenges before us as a nation, and this financial rescue bill only treats the symptoms of years of reckless fiscal and monetary policies – it is the tip of the financial iceberg,” Boyd stated. “We must also fix our underlying fiscal and monetary problems. This President not only helped cause this financial crisis because of his irresponsible fiscal and monetary policies; he also has been asleep at the switch when it comes to fixing these problems. The Blue Dogs and I look forward to working with our next President to improve our fiscal and monetary policies through responsible budgeting and increased oversight and regulation. Our short term and long term fiscal problems demand immediate, bipartisan attention from our next President and the next Congress.”