Senator Jim Webb's Take on Foreclosure Crisis in Letter

Response from the Senator Jim webb (VIRGINIA) to my message to him through e-mail;
Senator Jim Webb’s Response to Your Message.
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from correspondence_reply@webb.senate.gov
to therajafamily@gmail.com
date Wed, Mar 2, 2011 at 4:12 PM
subject Senator Jim Webb’s Response to Your Message.
mailed-by webb.senate.gov
signed-by senate.gov
hide details 4:12 PM (1 hour ago)

March 2, 2011

Dear Mr. Raja:

Thank you for contacting my office regarding accountability for financial institutions and consumer protection. I appreciate your taking the time to share your views with me.

The reckless practices on Wall Street that led to the financial collapse of September 2008 were the product of greed and the failed oversight system in the government. These failures cost millions of American workers their jobs and risked the United States’ economic position in the world. On July 15, 2010, I supported the conference report to the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203) because I believe we must act to prevent another financial crisis and future bailouts. Americans need a reformed financial system that restores an appropriate degree of regulation and control over Wall Street and our banking system.
The financial reform legislation establishes a strong, independent consumer protection agency that will have the ability to conduct meaningful oversight and put consumers first, while exempting smaller banks and other businesses from potentially onerous regulation. The new bureau will establish a basic, minimum federal level playing field for all banks and, for the first time, non-depository financial companies that sell consumer financial products and services to American families.
Regarding executive compensation and corporate governance, I am committed to promoting economic fairness and increasing corporate accountability. The Dodd-Frank Wall Street Reform and Consumer Protection Act includes multiple provisions to help ensure that executive compensation is held to a reasonable level. For example, this legislation requires all applicable financial institutions (including depository institutions, broker-dealers, credit unions, investment advisors, Fannie Mae and Freddie Mac) with more than $1 billion in assets to prohibit incentive-based pay for executives, employees, directors, or principal shareholders deemed to be excessive, or that could lead to material financial loss for the financial institution.
To further address the issue of executive compensation and fundamental fairness, I introduced my Taxpayer Fairness Act as an amendment to Senate financial reform bill. My amendment would have given American taxpayers an upside in the recovery of our economic system, which became possible only because their tax dollars saved it. The amendment would have put a one-time windfall tax on bonuses paid in 2010 to executives of the thirteen financial institutions that received $5 billion or more of taxpayer support under TARP or the Housing and Economic Recovery Act of 2008 (Fannie Mae and Freddie Mac). This one-time, 50 percent excise tax on bonuses above $400,000 would raise, at a minimum, an estimated $3.5 billion. Nothing is more fair or appropriate than to make American taxpayers whole after they infused our financial system with capital necessary for its recovery. Unfortunately, the amendment did not come to a vote.
The Dodd-Frank Wall Street Reform and Consumer Protection Act also authorizes the Securities and Exchange Commission (SEC) to promulgate rules allowing shareholders in large public corporations to have more of a voice when it comes to the corporation’s governance. Under this legislation, at least once every three years, public company shareholders will be able to cast a non-binding vote to approve executive compensation for qualifying financial institutions. Additionally, the bill authorizes the SEC to create rules allowing shareholders to nominate candidates for the public companies’ board through the company’s proxy materials. This is done through a process called proxy access.
It is without question that additional efforts will be required going forward to ensure our financial system facilitates the growth of our economy without posing a risk to Main Street. In addition to close Congressional oversight of regulators, I am committed to ensuring that Congress addresses reform of Fannie Mae and Freddie Mac. I look forward to a full debate on the proper role of these institutions and working on a bill to address the risks they pose.
In the early days of our republic, President Andrew Jackson established an important principle of American-style democracy: that we should measure the health of our society not at its apex, but at its base. That focus has been lost, as many on Wall Street have accumulated vast wealth while the middle class falls steadily behind. When regions of Virginia are experiencing more than 21% unemployment and so many working Americans continue to struggle in this economy, it is only just that our leaders protect the interests of America’s working people.

As the Senate continues to address financial and consumer protection issues, please be assured that I will keep your specific views in mind. I hope you will continue to share your thoughts with me and my staff in the years ahead.

I also invite you to visit my website at http://www.webb.senate.gov for regular updates on issues that are important to Virginia and our nation.

Thank you once again for contacting my office.

Sincerely,

Jim Webb
United States Senator

Posted in bubble, Corruption, Eviction, securities fraud |