Whereas our country is currently in the middle of a
foreclosure crisis, with an average of 6,600 foreclosures occurring each
day;
Whereas since the initial credit disruption of 2007, our
national unemployment rate has risen above 8 percent, leading to 5,700,000 lost
jobs;
Whereas approximately 145,000,000 Americans presently have
credit cards, with the average household carrying more than $8,000 in credit
card debt;
Whereas with gas and food prices rising to record highs,
many families are using credit cards to make up the difference between today’s
higher prices and their stagnant or lost wages;
Whereas even credit cardholders with accounts in good
standing, have seen their credit limits reduced;
Whereas otherwise creditworthy borrowers have been denied
credit;
Whereas the costs of accessing the capital markets remain
too steep for many small and mid-sized companies, preventing them from
obtaining needed capital for day-to-day expenses and expansion;
Whereas domestic businesses are increasingly drawing on
their lines of credit to repay debt, meet payroll costs, and expand core
product areas;
Whereas reductions in a business’ ability to access credit
is causing an increase in unemployment and a decrease in economic growth, as
evidenced by a drop in gross domestic product of 6.1 percent for the first
quarter of 2009;
Whereas reductions in a consumer’s ability to access
credit is causing significant financial hardship to the average American
family;
Whereas since 2007, the United States Government has
provided banks and financial institutions access to $700,000,000,000 through
the Troubled Asset Relief Program (TARP);
Whereas the Supervisory Capital Assessment Program
implemented by the Secretary of the Treasury and the Board of Governors of the
Federal Reserve System demonstrates that our largest bank holding companies
have enough capital to resume normal lending activities;
Whereas despite receiving more than $1,000,000,000,000 in
Government assistance, improvements to system-wide liquidity, and signs of
receding market risk, financial institutions continue to tighten restrictions
on consumer and business access to credit; and
Whereas the inability of potential homebuyers to obtain
mortgages is prolonging the housing and economic crises: Now, therefore, be
it
That it is the sense of the House of
Representatives that the Secretary of the Treasury and the Chairman of the
Board of Governors of the Federal Reserve System should—
(1)protect and enhance every American
consumer’s and business’s access to credit;
(2)encourage credit
card issuers, banks, and other creditors to recognize longstanding customers
who are in good standing by not cutting their credit lines or raising their
interest rates; and
(3)reserve access to
programs under the Federal Reserve Act and the Emergency Economic Stabilization
Act for those institutions that are working to increase consumer and business
access to credit.