[Congressional Record (Bound Edition), Volume 154 (2008), Part 14]
[House]
[Page 19935]
[From the U.S. Government Publishing Office, www.gpo.gov]




              TAXPAYERS SACRIFICE ALL AND RECEIVE NOTHING

  (Mr. STEARNS asked and was given permission to address the House for 
1 minute.)
  Mr. STEARNS. Madam Speaker, the title of my 1-minute is called 
``Taxpayers Sacrifice All and Receive Nothing.''
  The plan that developed this weekend for a comprehensive bailout of 
private sector financial institutions put taxpayers at risk with little 
or no benefit to those who pay the taxes.
  This plan will put taxpayers at a risk for losses that belong to 
those companies that recklessly sought profits, profits for the 
stockholders and executives through dividends, salaries, bonuses and 
presumed stock appreciation. Instead, taxpayers who assume this risk 
should also enjoy an equity premium that goes beyond the return of 
their funds with interest for this bailout.
  The taxpayers, after being awarded interest from their funds, as if 
they had invested in bonds, should have warrants as an equity kicker to 
sweeten their deal, giving them premium for their risk. Any 
institutional lender would demand as much and more. In this way, the 
taxpayers could share in the upside success of the companies that they 
rescue.

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