The U.S. Senate has approved bipartisan economic stabilization legislation aimed at preventing America’s economy from being driven into financial catastrophe. In a speech before the U.S. Senate earlier today, Senator Collins called on the Senate to pass the bill to “prevent further devastating consequences to our economy.” She said the Senate version of the legislation, which represented a significant improvement over an earlier plan proposed by the U.S. Department of Treasury, includes many of the principles for which she pressed--strong protections for taxpayers, curbs on excessive executive compensation, and tough oversight and accountability.
Following the Senate vote, Senator Collins released this statement:
“It was critical for the Senate to pass this bipartisan bill to help put our nation on a path to economic recovery. While I share anger with many of my constituents and colleagues that this bill is necessary, we must prevent further devastating consequences to our economy.
“This bill represents significant improvements from the Administration’s earlier proposal, which was deeply flawed. It includes the principles for which I have pressed—strong protections for taxpayers, curbs on excessive compensation, and tough oversight and accountability. If managed properly, the plan could enable taxpayers to not only recover the cost of the plan, but to realize a profit.
“The implications of our current crisis go far beyond Wall Street and big banks and are now causing concern among seniors and older workers who are worried about their pension plans, homebuyers, car dealers and small businesses who are finding credit increasingly difficult and expensive to obtain.
“As a former Maine financial services regulator, I understand that this is a very complex problem. Its roots lie in the past decade of the real-estate bubble, relaxed lending standards, insufficient regulation of Freddie Mac and Fannie Mae, and the creation of complicated securities tied to mortgages that were no longer held by the lenders and brokers that originated them.
And it is unfortunate that efforts by both Presidents Clinton and Bush and Congress to strengthen regulation of financial markets, efforts I supported, were unsuccessful. Greater regulation could have helped minimize the current strains on our economy.
“The current upheaval in the financial markets certainly has created great stress on the lives of families throughout the country as well as our financial markets. It is my hope that the House passes this bill as soon as possible so it can be signed into law. Congress must not adjourn until this critical work is completed.”