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Conaway: Higher FDIC limits, incentives would encourage him to vote for financial rescue package
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| U.S. Congressman Mike Conaway speaks Tuesday in front of UTPB President, David Watts, in the foyer of the UTPB library to students and faculty about the U.S. Department of Education grant for nearly $5 million over two years to the university. Photo by Tim Fischer 9\30\08 |
The Midland Republican would like to see FDIC limits increased to $250,000 or $500,000, which would create confidence in financial institutions.
by Ruth Campbell
Midland Reporter-Telegram
Less taxpayer exposure, raising Federal Deposit Insurance Corp. limits, giving the private sector incentives to buy mortgages and increasing confidence in the markets are things that would help U.S. Rep. Mike Conaway vote for any financial rescue package.
Confidence in the lending sector where banks lend money to each other overnight and undervalued mortgage-backed securities are the two factors Congress is trying to tackle as they work to right the money markets.
Normally, overnight lending between banks and banks or banks and companies works under the radar. "It's billions of dollars," the Midland Republican said at an Odessa news conference Tuesday. "It's the lubricant for this economy that keeps it rolling ..." and it's in "danger of seizing up."
Conaway, on a visit to University of Texas of the Permian Basin to announce a federal grant, said he will be returning to Washington on Thursday to begin work once more on the financial rescue package.
The Midland Republican would like to see FDIC limits increased to $250,000 or $500,000, which would create confidence in financial institutions.
He would also like a "tax holiday" for capital gains and perhaps income tax to get new money coming into the markets and help get these assets off bank books and back into the free market.
Up until he voted "no" on the financial package Monday, Conaway was unsure of which way to go. He read the bill and talked to people, but as he stood at the kiosk where he votes, he didn't know whether to push the green or red button.
Before he pushed the red button, he got phone calls from people telling him not to vote for the package. Afterward, with the stock market drop, he got calls of the opposite opinion.
When the proposal didn't pass, Conaway admits he was shocked. He said the Democratic majority is responsible for introducing laws on the floor and getting them passed.
He said Majority Leader Nancy Pelosi's speech on the House floor didn't help matters. Conaway said she was the one person who could take the high ground. "Clearly it didn't help for her to castigate president and all things Republican in the face of that vote," he said.
"I'm sure the speaker would have loved to have 100 Republicans vote for it. That meant she would have to get 118 of her people. That's all past history. We can analyze it six ways from Sunday," he added.
He hopes the market will look at Congressional commitment to solving the financial crisis, which would buy some time. He added that the longer this goes on without a "cataclysm" occurring, the more confidence people should have.
"There are lessons to be learned for all of us," Conaway said. He added this started with the Community Reinvestment Act of 1977, when banks were "bullied" into making loans to people who shouldn't have been borrowing.
Much of the recent lending was based on "really poor standards," lack of documentation, no money down and loaning money in excess of a home's value, he said.
"It occurred because we had government programs in place to protect people from the consequences of their acts," Conaway said.
Conaway said the economy will bounce back and points to how it absorbed the collapse of Washington Mutual and Wachovia banks.
"The American economy is incredibly resilient. In the last six to seven years in the face of exploding energy costs. This is a wonderful country with great opportunities. We have to eliminate the excesses and live within our means. ... There are going to be some hard times, but I have great confidence in American worker, the American system and great confidence in all of us. Whatever lies ahead in next months, we'll take care of it."
Ruth Campbell can be reached at ruth@mrt.com.
Confidence in the lending sector where banks lend money to each other overnight and undervalued mortgage-backed securities are the two factors Congress is trying to tackle as they work to right the money markets.
Normally, overnight lending between banks and banks or banks and companies works under the radar. "It's billions of dollars," the Midland Republican said at an Odessa news conference Tuesday. "It's the lubricant for this economy that keeps it rolling ..." and it's in "danger of seizing up."
Conaway, on a visit to University of Texas of the Permian Basin to announce a federal grant, said he will be returning to Washington on Thursday to begin work once more on the financial rescue package.
The Midland Republican would like to see FDIC limits increased to $250,000 or $500,000, which would create confidence in financial institutions.
He would also like a "tax holiday" for capital gains and perhaps income tax to get new money coming into the markets and help get these assets off bank books and back into the free market.
Up until he voted "no" on the financial package Monday, Conaway was unsure of which way to go. He read the bill and talked to people, but as he stood at the kiosk where he votes, he didn't know whether to push the green or red button.
Before he pushed the red button, he got phone calls from people telling him not to vote for the package. Afterward, with the stock market drop, he got calls of the opposite opinion.
When the proposal didn't pass, Conaway admits he was shocked. He said the Democratic majority is responsible for introducing laws on the floor and getting them passed.
He said Majority Leader Nancy Pelosi's speech on the House floor didn't help matters. Conaway said she was the one person who could take the high ground. "Clearly it didn't help for her to castigate president and all things Republican in the face of that vote," he said.
"I'm sure the speaker would have loved to have 100 Republicans vote for it. That meant she would have to get 118 of her people. That's all past history. We can analyze it six ways from Sunday," he added.
He hopes the market will look at Congressional commitment to solving the financial crisis, which would buy some time. He added that the longer this goes on without a "cataclysm" occurring, the more confidence people should have.
"There are lessons to be learned for all of us," Conaway said. He added this started with the Community Reinvestment Act of 1977, when banks were "bullied" into making loans to people who shouldn't have been borrowing.
Much of the recent lending was based on "really poor standards," lack of documentation, no money down and loaning money in excess of a home's value, he said.
"It occurred because we had government programs in place to protect people from the consequences of their acts," Conaway said.
Conaway said the economy will bounce back and points to how it absorbed the collapse of Washington Mutual and Wachovia banks.
"The American economy is incredibly resilient. In the last six to seven years in the face of exploding energy costs. This is a wonderful country with great opportunities. We have to eliminate the excesses and live within our means. ... There are going to be some hard times, but I have great confidence in American worker, the American system and great confidence in all of us. Whatever lies ahead in next months, we'll take care of it."
Ruth Campbell can be reached at ruth@mrt.com.
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The following are comments from the readers. In no way do they represent the view of mywesttexas.com.
the-eurasianearthlink.net wrote on Oct 1, 2008 1:38 PM:
" Rep. Mike Conaway
Experimental & Pursuant to the 5th Amendment of the US Constitution:
These things in the newspaper article are called PRESS RELEASES,
We need less press releases. MIKE CONAWAY NEEDS TO TALK WITH HIS CONSTITUENTS AND PROBLEM SOLVERS PUBLICLY PUBLICLY PUBLICLY AT FORUM SITES OF MIDLAND REPORTER TELEGRAM.
Mr. Mike Conaway: remember that $300 Bush Rebate in 2001? Remember the $300, $600, $1,200 Bush Rebate in 2008 ? ALL THOSE ARE PRESIDENT BUSH' USE OF EURASIAN EXPERIMENTAL. WHEN WILL GOVERNMENT JUSTLY COMPENSATE EURASIAN UNDER THE 5TH AMENDMENT????? WHEN PRESIDENT BUSH IS OUT OF OFFICE? WHEN MIKE CONAWAY IS OUT OF OFFICE? the-eurasian@earthlink.net "
Experimental & Pursuant to the 5th Amendment of the US Constitution:
These things in the newspaper article are called PRESS RELEASES,
We need less press releases. MIKE CONAWAY NEEDS TO TALK WITH HIS CONSTITUENTS AND PROBLEM SOLVERS PUBLICLY PUBLICLY PUBLICLY AT FORUM SITES OF MIDLAND REPORTER TELEGRAM.
Mr. Mike Conaway: remember that $300 Bush Rebate in 2001? Remember the $300, $600, $1,200 Bush Rebate in 2008 ? ALL THOSE ARE PRESIDENT BUSH' USE OF EURASIAN EXPERIMENTAL. WHEN WILL GOVERNMENT JUSTLY COMPENSATE EURASIAN UNDER THE 5TH AMENDMENT????? WHEN PRESIDENT BUSH IS OUT OF OFFICE? WHEN MIKE CONAWAY IS OUT OF OFFICE? the-eurasian@earthlink.net "
gene smith wrote on Oct 1, 2008 6:45 PM:
" Mr. Conaway,
Will you support the small businessmen in West Texas when they go under? I started an oil field related business in 1981 with my partner. No one from congress came to our rescue at the end of the boom when we had problems. We lived through $10..00 a barrel oil and took pay cuts for ourselves to keep our hands and keep our company going. The CEO's who have basically underminded the value of their employees and stock holders need to be made to give back the millions they have taken as pay and bonuses. Since you support this 2nd package to bail out these frauds I find that I can no longer support you as our political lrepresentative. Gene Smith "
Will you support the small businessmen in West Texas when they go under? I started an oil field related business in 1981 with my partner. No one from congress came to our rescue at the end of the boom when we had problems. We lived through $10..00 a barrel oil and took pay cuts for ourselves to keep our hands and keep our company going. The CEO's who have basically underminded the value of their employees and stock holders need to be made to give back the millions they have taken as pay and bonuses. Since you support this 2nd package to bail out these frauds I find that I can no longer support you as our political lrepresentative. Gene Smith "
robert wrote on Oct 2, 2008 6:47 AM:
" raise the fdic limit to 500,000 and tax incentives for "free market" investors. Aren't the free mariket investors the ones who caused this enormous problem. How does this really advance the lives of working families in the united states. Sounds like welfare for a few to me. what happened to supply side economics? This is bailout is another chapter in "failed reaganomics" "
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Mike C wrote on Oct 1, 2008 9:22 AM: