Turner Opposes $700 Billion Blank Check Bailout
Washington, D.C. – Congressman Michael R. Turner today opposed the unprecedented $700 billion bailout of American banking and financial institutions. Congressman Turner opposes this bailout because:
· the bill fails to hold accountable those whose actions imperiled our financial system and endangered American homeowners
· it does not prohibit the bad lending actions that led to this crisis,
· the legislation provides no real relief for affected communities and loan victims
· no information has been provided on what mortgage backed securities will be bought, what value the underlying properties have, how many there will be, and what condition the properties are in
· there has been no real consideration of any alternative to this specific bailout package that was rushed to the floor
· there is no guarantee this bailout will work and there is no plan for what will be done if the bailout does not succeed.
“While action is urgently needed to address this crisis, I am not convinced that this bailout offers real relief to American homeowners or adequately addresses the issues that brought about this alarming situation,” Congressman Turner said. “Our entire financial system has been imperiled by the greed of the people that run some of these companies. The same people could continue to offer these same loans that caused all this trouble: this bill will not prevent it. . Our region has suffered greatly during this foreclosure crisis. I am disappointed that this legislation fails to address this problem.”
Congressman Turner has been actively involved in community efforts to address issues of affordable housing and predatory lending since his service as Mayor of Dayton, when he worked on a bipartisan basis with City Commissioner Dean Lovelace. He has co-sponsored legislation that would allow bankruptcy judges to modify mortgage agreements when a home is in imminent threat of foreclosure, potentially helping over 600 families in the Miami Valley. He also sponsored an amendment to the FY2008 Transportation and HUD Appropriations bill to provide an additional $6.7 million in funding for agencies that offer housing counseling to homeowners. Recently, Rep. Turner introduced the Preserve Our Neighborhoods Act of 2008 in response to the $700 billion proposed bailout of the financial system. Congressman Turner’s legislation would provide assistance to municipalities in taking possession of mortgages that the bailout legislation would transfer to the federal government. This legislation would help prevent properties and cities from going into blight through neglect.
“My district has some of the highest foreclosure rates in the nation,” Rep. Turner said. “This crisis demands immediate action but it also demands accountability. I will continue to work with my colleagues to find a solution that provides real help to both our economy and to American homeowners.”