I have very serious concerns about the Treasury Department’s proposed $700 billion bailout to try to stem the crisis in our financial markets. Taxpayers did absolutely nothing to cause this crisis. Wall Street’s recklessness, excesses and greed – along with lax federal oversight – are to blame for the worst financial turmoil since the Great Depression.

Some say we in Congress should do nothing. That may not be an option. We’ve been told Congress must act swiftly, or the country could fall into a 10-year economic depression. Whatever we do, though, it must be done right.

The $700 billion plan Treasury delivered to Capitol Hill to try to get us out of this crisis is little more than a “blank check.” Before Congress signs off, I believe the bailout legislation must be modified to include safeguards worthy of taxpayers’ commitment.

When I or anyone else goes to a bank for a loan, the bank makes us repay the loan with interest. Now, Wall Street is coming to taxpayers for a massive loan. It’s only fair taxpayers get a payback with interest, too - so that any gains from the rescue plan don’t go to the people who made the mess in the first place.

Here are five conditions that I will fight for in any bailout legislation.

First, any proceeds or profits resulting from the bailout should go to pay off the public debt that will be the source of the proposed bailout.

Second, I believe foreign countries should shoulder a share of the financial burden to reign in what has become a global financial crisis. Many companies have moved jobs or their headquarters overseas to avoid paying US taxes, for the U.S. taxpayer to bail them out would be unacceptable. For the most part, these are multi-national companies in a global economy.

Third, we need to eliminate the “golden parachutes,” the big bonuses and the multi-million dollar severance deals for the executives that helped drive the crisis. These incentives perversely rewarded executives for taking greater and greater risks, rewarding them for making up endless investment schemes not worth the paper they were written on.

Fourth, the legislation should make it clear that the root cause of this crisis is rising foreclosures and dropping home values, and overzealous lenders assuming too much risk on these loans. To the extent possible, the burden on homeowners should be eased by the legislation. We shouldn’t save Wall Street from itself without looking out for Main Streets in Nebraska and across the country.

Finally, we must have strong new accountability, congressional oversight and federal regulation over Wall Street. Never again should Wall Street be allowed to run wild with greed while jeopardizing our nation’s economy.

This entry was posted on Tuesday, September 23rd, 2008 at 1:30 pm and is filed under Uncategorized .