Candidates Say Accountability Key to Financial Solution

Press Release

Candidates say accountability key to financial solution

Accountability is the key to solving the nation's financial crisis, Central Virginia's two congressmen and their election opponents said Friday.

Wall Street ought to be required to salvage shaky mortgages that add up to perhaps $700 billion, said Reps. Virgil Goode, R-5th District, and Bob Goodlatte, R-6th District.

Tom Perriello, Goode's Democratic opponent in November's election, said he wasn't sure where the $700 billion figure came from, but he's against bailing out the financiers who made risky moves.

People he meets on the campaign trail are furious, Perriello said.

"We've got to say, ‘not one single dollar of bailout' until the underlying issues are addressed," Perriello said, referring to "a total lack of accountability for Wall Street executives and shaken investor

confidence."

In recent years, as the stock market's Dow average climbed above 14,000 points, "we've had the foxes guarding the hen house," Perriello said.

Now, with the market faltering in the 11,000 range, "They want to privatize the gains and socialize the losses.

"That doesn't work well for the rest of us," Perriello said.

Goode also said Wall Street should pay for the recovery.

"I disagree with having the taxpayers on the hook for $700 billion," Goode said.

But he wasn't averse to the public's paying the premiums for insurance on the mortgages.

"I believe a plan to insure mortgage-backed securities through payment of insurance premiums should be explored," Goode said.

He also suggested "temporary tax relief provisions, such as eliminating capital gains taxes" would help companies. Goode also said he could allow banks to deduct their losses from their devalued shares of Fannie Mae and Freddie Mac, the failed mortgage financiers.

Goodlatte said late Friday that "Congress needs to act quickly to stabilize our economy.

"This must be done while protecting the American taxpayer through aggressive oversight, accountability and other measures that were not in the original proposal" from Treasury Secretary Henry Paulson.

"I am determined to stay in Washington until an agreement is reached which addresses the problems of Wall Street while protecting those on Main Street," Goodlatte said.

Sam Rasoul, Goodlatte's Democratic opponent in the Sixth District race, said the ideal legislative solution would "protect the businesses that keep our economic markets moving but also the everyday folks who are the engine of our economy."

Rasoul said he favored ideas put forth by Sen. Jim Webb, D-Va., which included new regulations on the financial system, better accountability for bailout funds, giving taxpayers a share if gains occur from the bailout, and less assistance to foreign banks.

"It is not the federal government's job to provide a golden parachute to executives who made poor decisions with people's money," Rasoul said.

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