LARSON INTRODUCES LEGISLATION TO EXAMINE CAUSES OF FINANCIAL DOWNTURN
FOR IMMEDIATE RELEASE
January 29, 2009
CONTACT: Emily Barocas
202.225.7295
LARSON INTRODUCES LEGISLATION TO EXAMINE CAUSES OF FINANCIAL DOWNTURN
Washington, DC - This week, Congressman John B. Larson (CT-01), Chairman of the HouseDemocratic Caucus, introduced legislation that would create a commission to investigatethe true causes of the economic crisis our country is suffering through.
Congressman Larson said, "We have been addressing the symptoms of our financial crisis ratherthan curing the disease because we don't have a good diagnosis. The Americanpeople have lost their homes, jobs and health care as this recession has hitcommunities across the country. Journalists, pundits, lawmakers, and most importantly the Americanpeople have all raised the question of how we got here. We must answer thosequestions."
This legislation is a major step forward. It would create a nonpartisan,congressionally appointed commission to determine what caused this financialcrisis and what can we do to keep it from happening again. The commission wouldreport back to Congress within 90 days on the tax ramifications of the currentcrisis, and the legislative and oversight environment that led to it.
It would look, for example, at the regulation of thederivative markets and mortgage-backed securities to determine if they areregulated properly and if complex and unstable financial products like these makeus vulnerable in a global economy. Itwould investigate the effectiveness and transparency of our regulatoryagencies, the Securities and Exchange Commission (SEC) and the CommodityFutures Trading Commission (CFTC).
Larson said, "Did ourregulatory agencies turn a blind eye to market manipulation and unethicalbehavior? Are new markets beingmonitored with outdated regulation? These are all questions the Commission would answer."
The Commission would also advise lawmakers on the content ofan "investors' bill of rights" that could then be turned into legislation. It would protect average Americans' 401(k)s,pensions and savings from corporate greed and mismanagement.
The ultimate goal of the Commission is not just to provide legislativesuggestions, but also ideas to reform the culture of American business.
Larson said, "I wouldinvolve top executives in the process, so that they can take the lessonslearned back to their companies and change the way business in this country isdone."
The legislation has been referred to the Ways and MeansCommittee of which Congressman Larson is a member and the Financial ServicesCommittee.
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