WASHINGTON, D.C. — U.S. Rep. Charlie Dent (PA-15) today urged consideration of more than one proposal to correct the nation’s financial markets, and called on Congress to stay in session until a sensible plan is adopted.
Congressman Dent spoke with reporters during a teleconference Tuesday evening and gave the following remarks:
“I am greatly concerned with the volatile state of our economy. Over the last few days I have engaged in discussions with the Administration regarding the execution of their proposal to authorize the use of $700 billion for the purchase of securities that are disrupting the financial markets and banking system. I am wary of authorizing a blank check to the United States Treasury on behalf of American taxpayers. Our credit markets are frozen. I understand the need and urgency to inject liquidity into the market place, but we are short sighted to consider only one route to that end.
“Although Congress is working to pass legislation in order to adjourn by Friday (September 26th), I believe it is absolutely imperative that we remain in session until we have reviewed all of the options and crafted the most effective plan to stabilize our economy. We must not let the upcoming election dictate our response and supersede our responsibility to the American people to enact a systemic response to the challenges facing our economy.
“Last weekend I listened to my constituents, including local bankers and small business owners, regarding their reaction to the Treasury’s request for a two year $700 billion revolving fund to purchase ill-liquid securities from Wall Street. Needless to say, there is grave concern regarding the impact of bringing our federal government into the business of purchasing and holding mortgage backed securities. Without considering another plan and signing this proposal into law, we will increase the federal debt limit to $11.3 trillion.
“In July, I rejected the omnibus housing legislation that provided Treasury with a blank check to buy shares in our floundering government-sponsored enterprises, Fannie Mae and Freddie Mac. Secretary Paulson requested this authority but indicated such purchasing power would not be likely. A short time later, we find Fannie and Freddie in a conservatorship with the federal government.
“I am dedicated to protecting the constituents of the 15th District and taxpayers across our nation from a hastily developed solution to the turbulence in the financial markets.”