Republicans Counter Democrats' Financial Regulatory Reform Plan

By Celia Canon-Talk Radio News Service

At a press conference on Thursday, Republicans presented their own financial regulatory reform plan to counter proposals made by the Democrats on this issue.

Rep. Jeb Hensarling (R-Texas) said that “The Republican plan will transition Fannie (Mae) and Freddie (Mac) to market competition over a reasonable period of time to help end what the taxpayers are tired of.. and that is bail-out mania.”

Congressman Spencer Bachus (R- Ala) emphasized the weakness of the Democrats’ plan.

“Unfortunately, the administration's plan continues the cycle of bailouts for "too big to fail" financial institutions, furthers the government's role in picking winners and losers, complicates rather than streamlines the current regulatory structure, and keeps taxpayers on the hook for losses caused by imprudent risk-taking on Wall Street,” said Bachus.

Bachus explained that instead, “The Republican plan would direct all failed non-banks to enhanced bankruptcy proceedings. Bankruptcy is a fair and transparent process where the rules are clear and well-established, and which does not require taxpayer funding to bail out the creditors of failed institutions.”

Rep. Shelley Moore Capito (R-Va.) summarized the Republican plan.

“It’s a better protection for our taxpayers, it’s less government involvement, it’s a more orderly transition,” said Capito.

Congresswoman Judy Biggert (R-Ill.) also partook in the presentation of the regulatory plan.

“There’s going to be enforcement and fiscal responsibility for all those that created (crisis),” said Biggert.

Rep. Shelley Moore Capito (R-Va.) summarized the Republican plan.

“It’s a better protection for our taxpayers, it’s less government involvement, it’s a more orderly transition,” said Capito.

Despite the differing plans, both Republicans and Democrats agree on one point: America needs change in the financial system.

Middle-Class First Victim Of The Stimulus Package, Says Boehner

By Michael Combier-Talk Radio News Service

House Minority Leader John Boehner (R-Ohio) criticized the $787 billion economic stimulus package for having too many repercussions in the daily life of American middle-class taxpayers. The middle-class has been hit the hardest by measures taken by the Obama administration said Boehner during a weekly press conference in Washington.

“The pattern here is pretty clear”, said Boehner. “Every time the President makes a so-called tough decision, it is the American middle-class that gets hit the hardest... People who follow the rules, people who pay their mortgages on times, pay their credit cards on times, go to work every day, they’re the ones who” are getting hit upon every day, he said.

Boehner said that “people are really fed up and Washington is hanging up the middle-class in to dry” and require them to pay for the stimulus package, the financial bailouts of AIG and General Motors.

The usefulness of the stimulus package was questioned by Boehner with the attempt of a Georgia town to use stimulus funds “in order to lure” a company with 1,200 jobs based in Ohio.

On the recent bankruptcy of General Motors, Boehner said that the Obama administration is “going to control the board at General Motors and so the government will make the decisions... Auto companies force Americans to buy cars they don’t want to buy. This is lunacy, and all of this is going to get stuck on the back of American middle class’ taxpayers.”

"Christmas in July" for big oil companies

Exxon spends more money on its Chief Executive Officer than it does on energy research, according to Senate Democratic Conference Vice Chairman Charles Schumer (D-N.Y.). Schumer said that he was not surprised with the profits oil companies are making but rather, he was surprised about how oil companies are spending their profits. According to Schumer, oil companies are using the profits to buy back their own stock and increase their share prices.

House Democratic Caucus Chairman Rahm Emanuel (D-Ill.) said that the government must stop subsidizing big oil companies and demand that the companies divert more resources into increased domestic production. Emanuel said that American taxpayers are spending billions of dollars for handouts to big oil companies and are also being forced to pay record prices at the pump. According to Emanuel, big oil companies are spending $180 billion on stock buy-backs but only spending $10 billion on research and development.

House Select Committee on Energy Independence and Global Warming Chairman Ed Markey (D-Mass.) said that BP now stands for Bloated Profits. Markey also doled out statistics regarding big oil companies' profits. According to Markey, big oil companies made $40.6 billion profits in 2007 and spent $32 billion on stock buy-backs. Markey emphasized that big oil companies had only spent $10 million on renewable energy.