Smith Opposes Economic Package

Statement

Smith Opposes Economic Package

Rep. Adrian Smith (R-NE) today voted in opposition of legislation establishing a $700 billion bailout package for the financial markets. The bill failed by a vote of 205 to 228.

"I am willing to stay in Washington and work with my colleagues on both side of the aisle until we find a solution. However, nationalizing every bad mortgage in America - in what some have called the largest corporate bailout in American history - is not the answer. The government exists to protect consumers, to set boundaries around the marketplace; it does not exist to ensure businesses succeed, nor to actively participate in our markets. Hundreds and hundreds of Nebraskans have contacted my office opposed to this bill, and I agree with them," Smith said.

The bill authorizes Treasury Secretary Henry Paulson to spend up to $700 billion to relieve faltering banks and other firms of bad assets backed by home mortgages, which are falling into foreclosure at record rates. The plan gives the Secretary of the Treasury wide latitude to purchase any asset at any price.

The plan also requires the establishment of an insurance guarantee program which will be available to insure assets at no cost to the taxpayer, in lieu of purchasing assets with taxpayer funds. Costs would be fully paid for by participating companies receiving the assistance and assets insured by the program would count against the total funds the Treasury Department would otherwise have available.

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