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Kanjorski asks bailout that protects taxpayers

The local U.S. representative criticizes the initial plan and calls for revision.

Times Leader Staff

WASHINGTON – U.S. Rep. Paul Kanjorski, D-Nanticoke, chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, delivered the only Democratic opening statement at the House Financial Services Committee hearing Wednesday.

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U.S. Rep. Paul Kanjorski calls for full disclosure of all aspects of the administration’s financial bailout plan.

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It was titled, “The Future of Financial Services: Exploring Solutions for the Market Crisis.”

Here are excerpts from Kanjorski’s opening statement:

“…the American taxpayers remain in the dark. The administration has only told them in general terms that our economy has reached a tipping point, and that the executive branch needs unprecedented powers and a blank check to fix the situation.

“In my view, the current dire circumstances require that the American people receive more information, rather than less… If our markets and capitalism itself are truly on the line, then the president must speak openly, frankly, and publicly about these problems.

“Once the administration establishes the predicate for emergency action, only then should the Congress consider passing this package of truly massive proportions. And, if we do decide that the Treasury’s plan is the proper course, we must revise it to protect taxpayers. Their interests must trump those of corporate fat cats and cowboy capitalists.

“We must also put partisanship aside… The American people want cooperation and leadership by government in tough times.

“Unfortunately, the initial Treasury plan would have the taxpayers picking up the tab for a Wall Street party to which they were not even invited. It would also have taxpayers playing the role of venture capitalists without a share of profits in the long run. Americans are tired of enabling corporate excess.

“We must protect taxpayers and limit the Treasury’s powers. We must prevent those who contributed the most to this crisis from further profiting. We must establish strong oversight with a permanent in-house watchdog and a robust external congressional monitor. We must also control the program’s costs and seek ways to pay for this intervention, including surcharges on millionaires’ incomes and fees on securities transactions. Finally, we must help families with troubled loans to remain in their homes.

“Moreover, everyone in these debates must commit to significant regulatory reform of the financial system in the next Congress. The era of deregulation is over. As many of us on this side of the aisle have long believed, only regulation can save capitalism from its own excess.

“In sum, the economy is a man-made construct: Man made it, and man can fix it. I am committed to doing just that.”

Two TV appearances scheduled today

U.S. Rep. Paul Kanjorski, D-Nanticoke, will be a guest on CNBC and Bloomberg TV this morning to discuss the economic crisis.

Kanjorski is chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises.

He will appear on CNBC’s Squawk Box at 8:10 a.m. and on Bloomberg TV’s Market Pulse at 10:24 a.m.