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<div>A response to my message from DiFi?????</div>Curious. I thought I wrote to Senator Boxer.<div>I wonder how DiFi got into this loop. Hmmmmm.</div><div>Andi<br><div><br><div>Begin forwarded message:</div><br class="Apple-interchange-newline"><blockquote type="cite"><div style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><font face="Helvetica" size="3" color="#000000" style="font: 11.0px Helvetica; color: #000000"><b>From: </b></font><font face="Helvetica" size="3" style="font: 11.0px Helvetica"><<a href="mailto:senator@feinstein.senate.gov">senator@feinstein.senate.gov</a>></font></div><div style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><font face="Helvetica" size="3" color="#000000" style="font: 11.0px Helvetica; color: #000000"><b>Date: </b></font><font face="Helvetica" size="3" style="font: 11.0px Helvetica">October 10, 2008 8:28:08 AM PDT</font></div><div style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><font face="Helvetica" size="3" color="#000000" style="font: 11.0px Helvetica; color: #000000"><b>To: </b></font><font face="Helvetica" size="3" style="font: 11.0px Helvetica"><<a href="mailto:andid@cagreens.org">andid@cagreens.org</a>></font></div><div style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><font face="Helvetica" size="3" color="#000000" style="font: 11.0px Helvetica; color: #000000"><b>Subject: </b></font><font face="Helvetica" size="3" style="font: 11.0px Helvetica"><b>U.S. Senator Dianne Feinstein responding to your message</b></font></div><div style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; min-height: 14px; "><br></div> <span class="Apple-style-span" style="border-collapse: separate; color: rgb(0, 0, 0); font-family: 'Lucida Grande'; font-size: 11px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-align: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0; "><div class="Section1"><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-weight: bold; font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; ">Dear Ms. Dorey:</span></span></div><p class="Normal-P" style="line-height: 12pt; margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> </span><span style="font-size: 11pt; ">Thank you for your letter expressing concern about Congress' recent consideration of a plan to meet our Nation's credit crisis with financial help from the Federal Government.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> </span></span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> This is a difficult situation for which there are no perfect solutions, and I would like to share my thoughts and concerns with you. Please find attached two statements that I have given on the Senate floor detailing my reasons for supporting the Emergency Economic Stabilization Act of 2008 (Public Law 110-343), which the President signed into law on October 3, 2008.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Once again, thank you for writing. If you have any additional questions or concerns, please do not hesitate to contact my</span><st1:place w:st="on" xmlns:st1="urn:schemas-microsoft-com:office:smarttags"><st1:city w:st="on"><span style="font-size: 11pt; ">Washington</span></st1:city><span style="font-size: 11pt; ">,<span class="Apple-converted-space"> </span></span><st1:state w:st="on"><span style="font-size: 11pt; ">D.C.</span></st1:state></st1:place><span style="font-size: 11pt; "><span class="Apple-converted-space"> </span>office at (202) 224-3841. Best regards.</span></span></div><p class="Normal-P" style="text-align: center; margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-weight: bold; font-size: 11pt; "></span> </span></p><div style="text-align: center; margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-weight: bold; font-size: 11pt; "></span><span style="font-weight: bold; font-size: 11pt; ">Statement of U.S. Senator Dianne Feinstein</span></span></div><div style="text-align: center; margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-weight: bold; font-size: 11pt; "></span><span style="font-weight: bold; font-size: 11pt; ">In Support of the Economic Rescue Package</span></span></div><div style="text-align: center; margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-weight: bold; font-size: 11pt; "></span><span style="font-weight: bold; font-size: 11pt; ">October 1, 2008</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> "Mr. President, I rise today to support the bipartisan economic rescue legislation.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> It has been said that Senators have six-year terms for a reason. And that reason is to be able to take tough votes because it's right for the nation, and take tough votes when at times they may be adverse to the beliefs of your constituency.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> This today is indeed a tough vote.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> I want to thank the Banking Committee, particularly its chairman, Chris Dodd, and members on both sides of the aisle for their work on this.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> So let me quickly begin.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> This bill is not the bill that was put forward by Secretary Paulson on September 20th. His bill was essentially a non-starter - startling in its unbridled allocation of power to one man: the Secretary of Treasury whom we know now, and to a Secretary of Treasury after January whom we do not know.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> It placed this man above the law, above administrative oversight and above Congressional action and essentially gave him $700 billion to do with what he thought best.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> This bill didn't fly with virtually anyone who looked at it, particularly constituents, who have called in the tens of thousands all across this land.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> My office has received over 91,000 calls and emails with over 86,000 opposed. The bill before us is not Paulson's three-page proposal. Rather, it is a bipartisan effort that adds oversight, accountability, assistance to homeowners, executive compensation limits and other measures to protect taxpayers.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "></span></span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> But there still is a lot of misinformation on this bill.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> This is not a $700 billion gift for Wall Street.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Rather, the federal government will buy equity in certain assets - both good and bad - to pump liquidity into the marketplace and unfreeze credit which is increasingly freezing and unavailable.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Over time, these assets will be sold and the federal government will be the first paid back on the investment.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> The belief is that by doing this the federal government will clear much of the bad debt on the books of certain strategic financial institutions, restoring stability, adding liquidity and unfreezing credit.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Recently, we have seen major<span class="Apple-converted-space"> </span></span><st1:country-region w:st="on" xmlns:st1="urn:schemas-microsoft-com:office:smarttags"><st1:place w:st="on"><span style="font-size: 11pt; ">U.S.</span></st1:place></st1:country-region><span style="font-size: 11pt; "><span class="Apple-converted-space"> </span>institutions fail:</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; ">Bear Stearns</span></span></div><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; ">Fannie Mae and Freddie Mac</span></span></div><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; ">Lehman Brothers</span></span></div><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; ">Merrill Lynch</span></span></div><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; ">AIG</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; ">And, two retail banks - not investment banks:</span></span></div><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><st1:state w:st="on" xmlns:st1="urn:schemas-microsoft-com:office:smarttags"><st1:place w:st="on"><span style="font-size: 11pt; ">Washington</span></st1:place></st1:state><span style="font-size: 11pt; "><span class="Apple-converted-space"> </span>Mutual, and</span><span style="font-size: 11pt; "><span class="Apple-converted-space"> </span></span><span style="font-size: 11pt; ">Wachovia</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> If we do nothing, more institutions will fail.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Now, you may say: what does this mean to me? I work hard, I pay my bills, I pay cash.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Here's what it will mean to you: it will be harder for most Americans to get any credit. Therefore, jobs will be lost.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> And we may well face a deep recession.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> </span><st1:state w:st="on" xmlns:st1="urn:schemas-microsoft-com:office:smarttags"><st1:place w:st="on"><span style="font-size: 11pt; ">California</span></st1:place></st1:state><span style="font-size: 11pt; "><span class="Apple-converted-space"> </span>has 3.75 million small businesses with an average of 5.6 employees. That adds up to over 20 million jobs.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Some of these businesses are funded with cash, but most are funded with credit. When credit freezes, payrolls cannot be met. And when payrolls cannot be met, pink slips are sent out.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "></span></span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> And this will happen to retailers, grocery stores, restaurants, electrical and plumbing contractors, apparel manufacturers, computer and electronics stores, and auto dealerships.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Sales at auto dealerships have fallen dramatically in the past year.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; ">Ford sales are down 34 percent,</span></span></div><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; ">Chrysler sales are down 33 percent,</span></span></div><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><st1:city w:st="on" xmlns:st1="urn:schemas-microsoft-com:office:smarttags"><st1:place w:st="on"><span style="font-size: 11pt; ">Toyota</span></st1:place></st1:city><span style="font-size: 11pt; "><span class="Apple-converted-space"> </span>sales are down 29 percent, and</span></span></div><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; ">GM sales are down 16 percent.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; ">The list will go on and on.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Importantly, there have now been several improvements to this bill. First, The FDIC insurance rate covering bank deposits has been increased from $100,000 to $250,000. Americans will know that their deposits are secure up to $250,000.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> The legislation will provide tax relief to working families.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> One example: the Alternative Minimum tax is a real problem. It was meant to apply only to 200 wealthy people, but it was never adjusted for inflation and it has crept down the income scale to the point where more than 25 million taxpayers today may well have to pay an Alternative Minimum Tax.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> In<span class="Apple-converted-space"> </span></span><st1:state w:st="on" xmlns:st1="urn:schemas-microsoft-com:office:smarttags"><st1:place w:st="on"><span style="font-size: 11pt; ">California</span></st1:place></st1:state><span style="font-size: 11pt; ">, 700,000 people paid this tax last year. But 4 million Californians will pay that tax this year unless we take action.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> This bill takes that action. For one year it will prevent this tax increase.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> The Congressional Budget Office has reviewed this bill and concluded that the net cost to taxpayers is "likely to be substantially less than $700 billion."</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Again, these investments are first in line to be paid back.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> It must be remembered that there was a great deal of criticism when the<span class="Apple-converted-space"> </span></span><st1:country-region w:st="on" xmlns:st1="urn:schemas-microsoft-com:office:smarttags"><span style="font-size: 11pt; ">U.S.</span></st1:country-region><span style="font-size: 11pt; "><span class="Apple-converted-space"> </span>government bailed out<span class="Apple-converted-space"> </span></span><st1:country-region w:st="on" xmlns:st1="urn:schemas-microsoft-com:office:smarttags"><st1:place w:st="on"><span style="font-size: 11pt; ">Mexico</span></st1:place></st1:country-region><span style="font-size: 11pt; "><span class="Apple-converted-space"> </span>in 1996 with $20 billion. The fact is, the money was paid back ahead of time and $600 million in profit was made.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> </span></span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Let me give you the following points.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> This bill mandates that the government provide loan modifications for the subprime mortgages it acquires. This will help keep families in homes rather than foreclosing and putting the house on a deteriorating housing market where property values drop and homes are looted.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> The bill limits executive compensation.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> It provides strong oversight and accountability, including a financial stability oversight board, a five-member Congressional oversight panel, an Inspector General, and a constant presence at Treasury by the Government Accountability Office.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> This is the only choice Congress can make.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> One can rail against it and vote no on it, but that's not going to solve the problem. We have one chance, and one chance only, to solve the problem, and it is this bill.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> I wish I could write it differently. Others wish they could write it differently, but the fact is that we are faced with this. Again, there is no question this is a tough vote.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> But there's no question that this is a vote that I believe has to be made."</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="text-align: center; margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-weight: bold; font-size: 11pt; "></span><span style="font-weight: bold; font-size: 11pt; ">U.S. Senator Dianne Feinstein</span></span></div><div style="text-align: center; margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-weight: bold; font-size: 11pt; "></span><span style="font-weight: bold; font-size: 11pt; ">Floor Statement on the</span><span style="font-weight: bold; font-size: 11pt; "><span class="Apple-converted-space"> </span></span><span style="font-weight: bold; font-size: 11pt; ">Economic</span><span style="font-weight: bold; font-size: 11pt; "><span class="Apple-converted-space"> </span></span><span style="font-weight: bold; font-size: 11pt; ">Rescue Proposal</span></span></div><div style="text-align: center; margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-weight: bold; font-size: 11pt; "></span><span style="font-weight: bold; font-size: 11pt; ">September 26, 2008</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> "Mr. President, to date I have received from Californians more than 50,000 calls and letters, the great bulk of them in opposition to any form of meeting this crisis with financial help from the Federal Government. I wanted to come to the floor to very simply state how I see this and some of the principles that I hope will be forthcoming in this draft. Before I do so, I wish to pay particular commendation to Senator Dodd, Senator Schumer, Senator Bennett, and others who have been working so hard on this issue. I have tried to keep in touch -- I am not a negotiator; I am not on the committee -- but<span class="Apple-converted-space"> </span></span><st1:state w:st="on" xmlns:st1="urn:schemas-microsoft-com:office:smarttags"><st1:place w:st="on"><span style="font-size: 11pt; ">California</span></st1:place></st1:state><span style="font-size: 11pt; "><span class="Apple-converted-space"> </span>is the biggest State, the largest economic engine, and people are really concerned.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> We face the most significant economic crisis in 75 years right now. Swift and comprehensive action is crucial to the overall health of our economy. None of us wants to be in this position, and there are no good options here. Nobody likes the idea of spending massive sums of Government money to rescue major corporations from their bad financial decisions. But no one also should be fooled into thinking this problem only belongs to the banks and that it is a good idea to let them fail. The pain felt by Wall Street one day is felt there, and then 2,3,4 weeks down the pike, it is felt on<span class="Apple-converted-space"> </span></span><st1:street w:st="on" xmlns:st1="urn:schemas-microsoft-com:office:smarttags"><st1:address w:st="on"><span style="font-size: 11pt; ">Main Street</span></st1:address></st1:street><span style="font-size: 11pt; ">.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> The turbulence in our financial sector has already resulted in thousands of layoffs in the banking and finance sectors, and that number will skyrocket if there is a full collapse. The shock waves of failure will extend far beyond the banking and finance sectors. A shrinking pool of credit would affect the home loans, credit card limits, auto loans, and insurance policies of average Americans. I am receiving calls from people who tell me they want to buy a house, but they can't get the credit or the mortgage to do so. Why? Because that market of credit is drying up more rapidly one day after the other. It would have a major impact on State and local governments which would lose tens of millions of dollars, if not hundreds of millions of dollars.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Hurricane Ike shut down refineries on the gulf coast 2 weeks ago, and now, today, people are waiting hours in lines for gasoline in the South. Similarly, the collapse of the financial sector would have severe consequences for Americans all across the economic spectrum: for the person who owns the grocery store, the laundry, the bank, the insurance company. Then, if the worst happens, layoffs. And even more than that, somebody shows up for work and finds their business has closed because the owner of that business can't get credit to buy the goods he hopes to sell that week or that month. Wages and employment rates have already fallen even as the cost of basic necessities has skyrocketed. Our Nation is facing the highest unemployment rate in 5 years, at 6.1 percent. Over 605,000 jobs have been lost nationwide this year. My own State of<span class="Apple-converted-space"> </span></span><st1:state w:st="on" xmlns:st1="urn:schemas-microsoft-com:office:smarttags"><st1:place w:st="on"><span style="font-size: 11pt; ">California</span></st1:place></st1:state><span style="font-size: 11pt; ">, a state of 38 million people, has the third highest unemployment rate in the Nation at 7.7 percent. That is 1.4 million people out of work today. One and a half million people -- that is bigger than some States. We have 1.5 million people out of work, and one-half million have had their unemployment insurance expire and have nothing today.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Congress is faced with a situation where we have to act and we have to do two things. We have to provide some reform in the system of regulation and oversight that is supposed to protect our economy. We also have to find a permanent and effective solution to keep liquidity and credit functioning so that markets can recover and make profit. The situation, I believe, is grave, and timely, prudent action is needed.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Just last night, the sixth largest bank in<span class="Apple-converted-space"> </span></span><st1:country-region w:st="on" xmlns:st1="urn:schemas-microsoft-com:office:smarttags"><st1:place w:st="on"><span style="font-size: 11pt; ">America</span></st1:place></st1:country-region><span style="font-size: 11pt; "><span class="Apple-converted-space"> </span>-- Washington Mutual-- was seized by government regulators and most of its assets will be sold to JPMorgan Chase. This follows on the heels of bankruptcies and takeovers of Bear Stearns, Lehman Brothers, AIG, Fannie Mae, and Freddie Mac. If nothing is done, the crisis will continue to spread and one by one the dominos will fall.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Now, this isn't just about Wall Street. Because we are this credit society, the financial troubles facing major economic institutions will ricochet throughout this Nation and affect everyone. So I believe the need for action is clear. But that doesn't mean Congress should simply be a rubberstamp for an unprecedented and unbridled program.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> My constituents by the thousands have made their views clear. I believe they are responding to the original 3-page proposal by the Secretary of the Treasury. It is clear by now that that 3-page proposal is a nonstarter. It is dead on arrival and that is good. Secretary Paulson's proposal asked Congress to write a $700 billion check to an economic czar who would have been empowered to spend it without any administrative oversight, legal requirements, or legislative review. Decisions made by the Treasury Secretary would be nonreviewable by any court or agency, and the fate of our entire economy would be committed to the sole discretion of one man alone -- the man we know today, and the man whom we don't know after January.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Additionally, the lack of governance or oversight in this plan was matched by the lack of a requirement for regular reports to Congress. This proposal stipulated that the economic czar, newly created, would report to Congress after the first three months with reports once every 6 months after that. This was untenable. Six months is an eternity when you are spending billions a week. The Treasury Secretary asked Congress to approve this massive program without delay or interference. It is hard to think of any other time in our history when Congress has been asked for so much money and so much power to be concentrated in the hands of one person. It is a nonstarter.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Yesterday, shortly before we met for the Democratic Policy Committee lunch, we were told there had been a bipartisan agreement on principles of a possible solution, and many of us rejoiced. We know that our Members, both Republican and Democrat, have been working hard to try to produce something that was positive. Then, all of a sudden, it changed. One Presidential candidate parachuted into town which proved to be enormously destructive to the process. Now, negotiations are back on the table, and as I say, we have just received a draft bill of certain principles.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> I would like to outline quickly those principles that I think are important. First is a phase-in. No one wants to put $700 billion immediately at the discretion of one person or even a group of a very few people, no matter how bright, how skilled, how informed they might be on banking or finance principles. The funding should come in phases and Congress should have the opportunity to make its voice heard if the program isn't working or needs to be adjusted.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> The second point: Oversight, accountability, and governance. The Treasury Secretary should not and must not have unbridled authority to determine winners and losers, essentially choosing which struggling financial institution will survive and which will not. The original plan placed all authority in the hands of this one man, and this is why I say it was DOA -- dead on arrival -- at the Congress. We must assure that controls are in place to watch taxpayer dollars and make sure they are well-spent fixing the problem, and that oversight by a governance committee and the Banking Committees are strong, and that they give the best opportunity for the American people to recover their investment and, yes, even eventually make a profit from that investment. That can be done and it has been done in the past.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> I believe that frequent reporting to Congress is critical. Transparency, sunlight on this, is critical. So Congress should receive regular, timely briefings, perhaps weekly for the first quarter, on a program of this magnitude. A proposal should mandate frequent reporting and the public should be ensured of transparency to the maximum extent possible.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> I also believe that within the first quarter -- and this, to me, is key -- a comprehensive legislative proposal for reform must be put forward. We must reform those speculative practices that impact price function of markets. We must deal with the unregulated practices that have furthered this crisis. Look. I represent a State that was cost $40 billion in the Enron episode during 1999 and 2000 by speculation, by manipulation, and by fraud. There still is inadequate regulation of energy commodities sold on the futures market. And that is just one point in all of this. We must prevent these things from happening. The only way to do it is to improve the transparency of all markets. No hidden deals. Swaps, in my view, should be ended. The<span class="Apple-converted-space"> </span></span><st1:city w:st="on" xmlns:st1="urn:schemas-microsoft-com:office:smarttags"><st1:place w:st="on"><span style="font-size: 11pt; ">London</span></st1:place></st1:city><span style="font-size: 11pt; "><span class="Apple-converted-space"> </span>loophole should be ended.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> We have to outline rules for increasing regulation of the mortgage-backed securities market, along with comprehensive oversight of the mortgage industry and lending practices for both prime and subprime lending.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Senator Martinez of<span class="Apple-converted-space"> </span></span><st1:state w:st="on" xmlns:st1="urn:schemas-microsoft-com:office:smarttags"><st1:place w:st="on"><span style="font-size: 11pt; ">Florida</span></st1:place></st1:state><span style="font-size: 11pt; "><span class="Apple-converted-space"> </span>and I had a part in the earlier housing bill, which included our legislation entitled the SAFE Mortgage Licensing Act. We found that the market was rife with fraud. We found there was one company that hired hairdressers and others who sold mortgages in their spare time. We found there were unscrupulous mortgage brokers out there unlicensed, preying upon people, walking off with tens of thousands of dollars of cash. This has to end. It has to be controlled. It has to be regulated.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> So I believe the crisis of 2008 stems from the failure of Federal regulators to rein in this Wild West mentality of those Wall Street executives who led those firms and who thought that nothing was out of bounds. Every quick scheme was worth the time, and worth a try. Congress cannot ignore this as the root cause of the crisis. It was inherent in the subprime marketplace, and it has now spread to the prime mortgage marketplace.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> It is also critical that accurate assessments of the value of these illiquid mortgage-related assets be performed to limit the taxpayers' exposure to risk and structure purchases to ensure the greatest possible return on investment.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Taxpayer money must be shielded at all costs from risk to the greatest extent possible.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Reciprocity is not a bad concept if you can carry it out. The Government must not simply act as a repository for risky investments that have gone bad. An economic rescue effort that serves taxpayers well must allow them to benefit from the potential profits of rescued entities. So a model -- and it may well be in these new principles -- must be developed to ensure the taxpayers are not only the first paid back but have an opportunity to share in future profits through warrants and/or stocks.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> As to executive compensation limits, simply put, Californians are frosted by the absence of controls on executive compensation. Virtually all of the 50,000 phone calls and letters mentioned this one way or another. There must be limits. I am told that the reason the Treasury Secretary does not want limits on executive compensation is because he believes that an executive then will not bring his company in to partake in any program that is set up. Here is my response to that: We can put that executive on his boat, take that boat out in the ocean, and set it on fire. If that is how he feels, that is what should happen, or his company doesn't come in. But to say that the Federal Government is going to be responsible for tens of millions of dollars of executive salaries, golden parachutes, whether they are a matter of contract right or not, is not acceptable to the average person whose taxpayer dollars are used in this bailout. That is just fact.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> The one proposal that was made by one of the Presidential candidates that I agree with is that there should be a limit of $400,000 on executive compensation. If they don't like it, too bad, don't participate in the program. As I have talked with people on Wall Street and otherwise, they don't believe it is true that an executive, if his pay is tailored down, will not bring a company in that needs help. I hope that is true. I believe there should be precise limits set on executive pay.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Finally, as to tangible benefits for<span class="Apple-converted-space"> </span></span><st1:street w:st="on" xmlns:st1="urn:schemas-microsoft-com:office:smarttags"><st1:address w:st="on"><span style="font-size: 11pt; ">Main Street</span></st1:address></st1:street><span style="font-size: 11pt; "><span class="Apple-converted-space"> </span>in the form of mortgage relief, there have been more than 500,000 foreclosures in my home State of<span class="Apple-converted-space"> </span></span><st1:state w:st="on" xmlns:st1="urn:schemas-microsoft-com:office:smarttags"><st1:place w:st="on"><span style="font-size: 11pt; ">California</span></st1:place></st1:state><span style="font-size: 11pt; "><span class="Apple-converted-space"> </span>so far this year. In the second quarter of this year, foreclosures were up 300 percent over the second quarter of 2007. More than 800,000 are predicted before this year is over.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> I have a city in<span class="Apple-converted-space"> </span></span><st1:state w:st="on" xmlns:st1="urn:schemas-microsoft-com:office:smarttags"><st1:place w:st="on"><span style="font-size: 11pt; ">California</span></st1:place></st1:state><span style="font-size: 11pt; "><span class="Apple-converted-space"> </span>where one out of every 25 homes is in foreclosure. This is new housing in subdivisions. As you look at it, you will see garage doors kicked in. You will see houses vandalized. You will see the grass and grounds dry. You will see the street sprinkled with "For Sale" signs, and nobody buys because the market has become so depressed.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> This crisis has roots in the subprime housing boom that went bust, and it would be unconscionable for us to simply bailout Wall Street while leaving these homeowners to fend for themselves.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> </span></span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> Everything I have been told, and I have talked to people in this business, here is what they tell me: It is more cost-effective to renegotiate a subprime loan and keep a family in a house than it is to foreclose and run the risks of what happens to that home on a depressed market as credit is drying up, as vandals loot it, as landscaping dries up, as more homes in the area become foreclosed upon; the way to go is to renegotiate these mortgages with the exiting homeowner wherever possible. I feel very strongly that should be the case.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> I don't know what I or any of us will do if we authorize this kind of expenditure and we find down the pike in my State that the rest of the year, 800,000 to 1 million Americans are being thrown out of their homes despite this form of rescue effort. Think of what it means, Mr. President, in your State. You vote for this, any other Senator votes for it, and these foreclosures continue to take place and individual families continue to be thrown out of their homes. It is not a tenable situation.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> I hope, if anybody is listening at all, that in the negotiating team, they will make a real effort to mandate in some way that subprime foreclosures be renegotiated, that families, wherever possible, who have an ability to pay, have that ability to pay met with a renegotiated loan. I have done this now in cases with families who were taken advantage of. We called the CEO of the bank, and the bank has seen that the loan was renegotiated, in one case in<span class="Apple-converted-space"> </span></span><st1:city w:st="on" xmlns:st1="urn:schemas-microsoft-com:office:smarttags"><st1:place w:st="on"><span style="font-size: 11pt; ">Los Angeles</span></st1:place></st1:city><span style="font-size: 11pt; "><span class="Apple-converted-space"> </span>down to 2 percent. That is better than foreclosing and running the uncertainty of the sale of the asset in a very depressed housing market.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> These are my thoughts. Again, it is easy to come to the floor and give your thoughts. It is much more difficult to sit at that negotiating table.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span> </span></p><div style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> I once again thank those Senators on both sides of the aisle who really understand the nature of this crisis -- that it isn't only Wall Street, that it does involve<span class="Apple-converted-space"> </span></span><st1:street w:st="on" xmlns:st1="urn:schemas-microsoft-com:office:smarttags"><st1:address w:st="on"><span style="font-size: 11pt; ">Main Street</span></st1:address></st1:street><span style="font-size: 11pt; ">, and if there is a serious crash, it will hurt tens of millions of Americans, many of them in irreparable ways. So we must do what we must do, and we must do it prudently and carefully.</span></span></div><p class="Normal-P" style="margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "></span></span></p><div style="line-height: 12pt; margin-left: 0pt; margin-right: 0pt; margin-top: 0pt; margin-bottom: 0.0001pt; font-size: 10pt; font-family: 'Times New Roman'; "><span class="Normal-H" style="font-size: 10pt; font-family: 'Times New Roman'; "><span style="font-size: 11pt; "></span><span style="font-size: 11pt; "> I yield the floor. I suggest the absence of quorum."</span></span></div></div><br><div><br class="khtml-block-placeholder"></div><center>Sincerely yours,<div><br class="khtml-block-placeholder"></div>Dianne Feinstein<br> United States Senator</center><br><p>Further information about my position on issues of concern to California and the Nation are available at my website <a href="http://feinstein.senate.gov/public/">http://feinstein.senate.gov/public/</a>. You can also receive electronic e-mail updates by subscribing to my e-mail list at <a href="http://feinstein.senate.gov/public/index.cfm?FuseAction=ENewsletterSignup.Signup">http://feinstein.senate.gov/public/index.cfm?FuseAction=ENewsletterSignup.Signup</a>.</p> </span></blockquote></div><br></div></body></html>