Help for Main Street and Reform for Wall Street

Help for Main Street and Reform for Wall Street
 
On Monday, Sept. 29, 2008, Congress stood up and said “No” to President Bush and Treasury Secretary Paulson’s blank check for Wall Street. We acknowledge the members of Congress who pushed for substantial changes to the legislation, including cutting in half the Administration’s initial $700 billion request and requiring Congressional review for future payments.
 
While action must be taken to address the crisis in the financial markets, most Americans detest the idea that citizens should pay for the excesses of Wall Street while the needs of Main Street are neglected. Therefore, we call on Congress to address the concerns of ordinary American families and bring comprehensive financial reform to solve our current economic crisis.
 
We are united in urging that Congress develop and pass stronger legislation that meets the following principles:

 

Help for Main Street
 
Bankruptcy Protection
 
Legislation must provide help for homeowners struggling to stay in their homes. This can be done by revising the bankruptcy code back to its pre-1991 wording. Millions of families are being victimized by this foreclosure crisis – many who were misled by predatory lenders into taking mortgages that they didn’t understand and couldn’t afford. This bill must grant authority for bankruptcy judges to restructure mortgages and allow government to work with loan servicers on new mortgage terms, thereby providing stability and security for local communities and the economy as a whole. Bankruptcy protection is a win-win scenario as this provision will not cost one dollar to taxpayers.
 
A Strong Economic Recovery Package
 
Congress must pass a strong economic recovery package that will provide jobs for the workers who have lost their jobs and invest in local communities. The legislation must include an extension of unemployment insurance, investments to rebuild and strengthen public infrastructure, assistance to states to avoid deep cuts in education and health care and temporary food stamp increases to aid those who are hardest hit by the economic downturn. We believe a strong economic recovery package is vital to get the real economy moving and put people back to work.

Reform of Wall Street
 
Taxpayer Protection
 
The public’s massive amount of investment in our financial institutions must be vigorously protected. Tough, independent oversight, transparency and an assurance of repayment from the financial service companies must be mandatory. Wall Street speculators must pay their fair share for this bailout. The public must receive $1.25 in equity in exchange for every $1.00 in bad assets it acquires. Future profits of participating companies must first be returned to taxpayers before any other expenditures are undertaken.
 
Limitations on Executive Compensation
 
Tax dollars should be restricted from funding excessive executive compensation and golden parachutes. Strict limits on compensation and severance packages for senior executives must be required of any institution receiving taxpayer-funded assistance.
 
Help for Main Street and Reform of Wall Street is urged by the following organizations:
 
ACORN
American Federation of State, County and Municipal Employees (AFSCME)
American Friends Service Committee (AFSC)
Americans for Democratic Action
Campaign for Fresh Air & Clean Politics
Center for Community Change
Cities for Peace
Institute for Policy Studies Project on Inequality and the Common Good
Communication Workers of America (CWA)
Community Action Partnership
Friends of the Earth
Mexican American Legal Defense & Educational Fund (MALDEF)
Military Spouses for Change
National Consumers League
National Education Association (NEA)
National Priorities Project
NETWORK, A National Catholic Social Justice Lobby
RESULTS
Service Employees International Union
United Church of Christ, Justice & Witness Ministries
United for a Fair Economy
United States Student Association
United Steelworkers (USW)
USAction
Working Families Party

 

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