LARSON CONDEMNS CULTURE OF GREED ON WALL STREET
FOR IMMEDIATE RELEASE CONTACT:
January 27, 2009 EmilyBarocas/202-225-7295
LARSON CONDEMNS CULTURE OF GREED ON WALLSTREET
Washington, DC - Congressman John B. Larson (CT-01), Chairman of the HouseDemocratic Caucus, made the following statement.
"I am outraged by the actions of John Thain and other WallStreet executives. They have made amockery of the taxpayer and shareholder. While America loses its jobs and houses and health care, they showermillions on their executives, giving new meaning to the term robber baron. Wastingtaxpayer money on personal luxuries and undeserved bonuses at a time of suchserious crisis in the financial sector is morally reprehensible. These actions are further evidence of theculture of unrepentant greed on Wall Street.
"To save the entire economy from being brought down by WallStreet's bad actors, I and other Members of Congress, both Democrats andRepublicans, supported the Bush Administration's request to establish the TroubledAsset Relief Program (TARP). And, I still believe that the consequences of notpassing TARP would have been even more catastrophic.
"But now, we must explore all option to resolve the creditcrisis because the Bush Administration, Wall Street and big banks failed tomeet the expectations we set for them. The creation of a so called "bad bank",direct government lending to consumers and businesses, lending through theSmall Business Association and other alternatives must now be on the table."
"The legislation that the House passed last week to holdexecutives accountable for how they use TARP funds and set executive pay caps wasa good first step towards accountability. But, we need to do more."
"Those who brought down our financial system need to be heldaccountable. I strongly support the prosecution of anyone who uses tax dollarsto betray the public trust. We must revamp and restructure our regulatoryagencies - the SEC, CFTC and FINRA. Wemust examine the role of rating agencies in the collapse of our financialmarkets. And, I will demand that theTreasury Department and other agencies recover all improperly used funds.
"It is imperative that we don't make the same mistakesagain. We owe it to future generations to do a thorough and exhaustive reviewof what brought about this crisis."
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About John Thain andMerrill Lynch: The Wall Street Journal and other media outlets have reportedthat Mr. Thain lobbied for a multi-million dollar bonus for himself and laterpushed through more than a billion dollars in bonuses for Merrill employeesdespite the company's sale, catastrophic losses and need for extensive TARP(Troubled Asset Relief Program) funds from the federal government.