Washington, D.C. – U.S. Senator Mike Enzi, R-Wyo., a senior member of the Senate Banking Committee, cast a historic vote against the financial rescue package late tonight. Enzi was one of 25 senators to vote against the bill. The Senate passed the legislation by a vote of 74-25. The House is expected to take up the bill Friday.
"Throughout this debate, I have listened to arguments from both sides. I studied this legislative proposal line by line, and tried to measure the benefit this legislation would bring to our financial markets against its enormous cost to our taxpayers. Ultimately, I do not believe this is the best solution for our economy or the taxpayer. Something does need to be done to save our economy, but this package is just a very costly band-aid for big banks that will do very little to help patients who needs major surgery.
"A rescue plan of this scale requires a clear plan of action with a substantial chance of success. This plan has neither. This does not provide any measurable goals for success. I cannot vote for a bill to authorize $700 billion in taxpayer money without a substantial chance of success.
"I understand why many of my colleagues voted for this bill and why some of my constituents encouraged me to do the same. This was one of the hardest decisions I've ever had to make as a senator. I hope that, if this bill ultimately passes, it does help. I really do. I know this economic hole is dark but I believe there are other steps that we could try before jumping off a cliff $700 billion high. "The best way to solve this problem was to never get in the situation in the first place, but at this point that is not an option. Further disruption of our free market system by rewarding bad decisions with taxpayer money will only make this problem worse. That is why I oppose this legislation. We've got a lot more work to do and I look forward to working with my colleagues to reform our financial markets to ensure this situation never happens again.
"I will continue to work with my colleagues to craft comprehensive, accountable, and common-sense reforms to our financial markets. We must consider reforming the fair value accounting method when there is no market. The current rules prevent banks from understanding the true price of their assets in the long term. We need to enact reforms that make federal financial regulation more efficient, vigorous, and transparent. The role of Fannie Mae and Freddie Mac also needs to be re-evaluated in order to restructure the mortgage market from the bottom up. Finally, we should consider changes to our tax code, including capital gains and mortgage interest deduction, which will encourage liquidity in the marketplace. Another idea would be to expand the tax credit to those buying up foreclosed homes or homes on the market over 180 days." Enzi's full statement is available HERE.
