New Dems Praise Geithner Framework
The New Democrat Coalition, the largest coalition of centrist House Democrats, praised Treasury Secretary Timothy Geithner for producing a bold, innovative and transparent framework for financial stability.
Geithner's outline, which includes leveraging public dollars to attract private investment in illiquid assets and a new focus on foreclosure mitigation and unfreezing the credit markets for small businesses, represents the kind of coordinated action necessary to move a still-reeling financial system back towards stability. New Dems have long championed similar measures and look forward to working with Secretary Geithner through their Financial Services Task Force.
"Secretary Timothy Geitner has devised a comprehensive plan to facilitate credit injections into the financial markets. The plan's use of public and private money and more transparency and openness is a dramatic improvement on TARP," Congresswoman Ellen Tauscher (D-Calif.), the chair of the New Democrat Coalition, said. "I am looking forward to the details of a separate $50 billion initiative that is designed to help families facing immediate foreclosure on their homes."
"Despite the responsible plan the administration put forth, no one step is enough to cure our economic ills. That's why it is critical that the House and Senate work hard to find agreement to pass an economic recovery package to stanch the economy's bleeding and start creating jobs,"Tauscher added.
"Secretary Geithner deserves credit for laying out a clear, innovative framework to enable swift government action at a scale necessary to stabilize our financial system," said Congresswoman Melissa Bean, New Dem Vice Chair and co-chair of the coaltion's Financial Services Task Force. "I'm encouraged by the principles that Secretary Geithner has committed to adhering to with TARP funding, including increased transparency and accountability, protecting taxpayer dollars, consideration of congressional and oversight board recommendations, leveraging private sector capital, prioritizing credit availability for families and businesses, and most importantly - seriously addressing the foreclosure crisis with necessary resources. This will not be last year's TARP."
"Secretary Geithner has started a critical process to help stabilize our markets and improve our economic security," said Congressman Jim Himes, Co-Chair of the Financial Services Task Force of the New Democrat Coalition. "This bold action will help keep families in their homes, provide access to loans to keep small businesses operating, and ensure aggressive oversight of any taxpayer dollars. Most importantly, the plan focuses our work on the root-cause of the economic crisis-home foreclosures."
Bean and Himes co-chair the New Dem Financial Services Task Force, which has been working with the administration and Congressional leadership to champion many of the transparency and taxpayer protections Geithner discussed in his remarks. Just as important, the Task Force is focused on the need for comprehensive regulatory reform, including a systemic risk regulator, to prevent future system-wide failures in the financial system. The New Dems will work with the Obama administration and Congressional leadership to bring forward reforms that will strengthen consumer protections and enhance competitiveness for our financial markets.
"Secretary Geithner's multi-faceted approach will not only help to address our current crisis but will ensure that TARP funds are doing what they were initially designed to do,"said Congressman Ron Kind, New Dem Vice-Chair. "I am especially pleased that Secretary Geithner is focused on using existing resources in the most effective way before seeking additional funds. By leveraging public funds already allocated for this purpose to get some of the poison out of the system, while also expanding the lending capacity of the federal government, we will get credit flowing again."
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