[Congressional Record Volume 155, Number 118 (Friday, July 31, 2009)]
[House]
[Page H9249]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       AMERICA'S FINANCIAL CRISIS

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentlewoman from Ohio (Ms. Kaptur) is recognized for 5 minutes.
  Ms. KAPTUR. Mr. Speaker, the financial crisis has resulted in the 
largest transfer of wealth in U.S. history, from Main Street citizens 
to Wall Street titans, and Wall Street insiders made huge profits off 
the Ponzi scheme they set up that led to the real estate bust and to 
our economic demise.
  As the rest of America tries to dig itself out from the rubble left 
in their wake, The New York Times reports today that the nine biggest 
banks paid $32 billion in bonuses to their employees of the $165 
billion they got from us, the taxpayers; 4,793 bankers and traders got 
a minimum of an additional $1 million each. The average dealer at 
Goldman Sachs will earn $750,000 extra. Meanwhile, Wall Street is 
dumping their bad loans on us, through the government, while dragging 
their feet on the mortgage workouts.
  Bear in mind, some people in this Congress and in the Obama 
administration decided to pay servicers to do mortgage workouts because 
they weren't doing them themselves. So, rather than holding them 
accountable and rather than this Congress' holding them accountable, 
the administration is paying them, and they're still not doing it.
  Look at the rogues gallery. Bank of America got $45 billion in TARP 
funds while pulling in $2.7 billion in profits last quarter. They're 
going to pay $3.3 billion in bonuses. Wells Fargo got $25 billion in 
TARP funds and turned a $2.6 billion profit, and they will pay $980 
million in bonuses. J.P. Morgan is one of the worst. They got $25 
billion in TARP funds, and wracked up $2.7 billion in profits last 
quarter, and they will pay $8.9 billion in bonuses.
  I am introducing legislation today to place a full excise tax on all 
of those Wall Street bonuses, to recoup the taxpayers' money and to 
direct it be used to do real mortgage workouts across this country on 
behalf of the American people to get our local real estate markets 
working again from coast to coast.
  You know, Wall Street gorges itself on profits while unemployment is 
rising across our country, while foreclosures are rising and while pink 
slips are rising.
  Look at JPMorgan. Within one week--and this happened in Ohio--on a 
Friday, they invited borrowers to attend a workshop for workouts. One 
little problem: Nobody from JPMorgan showed up until our office had to 
do their work and call their staff and get them there hours late. Only 
five of the original 20 borrowers who showed up to the meeting were 
left because they'd all taken off work, and they'd been able to get 
sick time to go to the meeting. Then we invited JPMorgan to a workout, 
and they said they'd send three staff. They didn't. The event went on 
with one staff member, and people left frustrated.
  This is what is going on across our country, so the Obama 
administration called the 25 servicers up to Washington this week, and 
tried to talk sweet talk to them. The New York Times said it right 
yesterday. Here is what they said:
  Why aren't these companies cooperating? We're enriching them, but 
beyond that, ``Even when borrowers stop paying, mortgage companies that 
service the loans collect fees out of the proceeds when homes are 
ultimately sold in foreclosure. So the longer borrowers remain 
delinquent, the greater the opportunities for these mortgage companies 
to extract revenue--fees for insurance, appraisals, title searches, and 
legal services.''
  A Florida lawyer who defends homeowners against foreclosure, Margery 
Golant, says, ``It frustrates me when I see the government looking to 
the servicer for the solution, because it will never ever happen.''
  The tax laws favor them. So, despite the Federal Government's 
chickenhearted efforts, the servicers will have none of it because they 
can make more money with all of these bonuses and in letting people 
lose their homes.
  Look in your neighborhood. How many more foreclosure signs do you see 
there? When America went to war in the early 20th century, each citizen 
sacrificed for the Nation. Now it's all about the big shots. It's all 
about their bonuses and their power.
  Has greed really become the top American value? Foreclosures are 
rising. Unemployment is rising. Ninety percent of the people in our 
country say the economy is not working for them, and Wall Street banks 
just can't seem to help themselves. They're squeezing more profits off 
of our people's misery.
  What is wrong with this Congress? What is wrong with the Obama 
administration? What was wrong with the Bush administration that 
preceded it? Somebody had better stand up for the interests of the 
Republic.

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