Congressional Briefs: Lee and Cummings

By Staff

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“Specifically, thanks to their focused work, this bill will include $3 billion in funds to provide relief for unemployed homeowners. It will extend credit for the recently unemployed that will help save homes from foreclosure.

“This bill will stop the spread of foreclosure rescue scams and includes a vital $1 billion increase in Neighborhood Stabilization Funds to protect our hardest hit communities.

“Lower income communities and communities of color were targeted for these unaffordable and unethical products that are now driving millions of families into foreclosure.

“Access to financial services and insurance products for historically underserved communities is strengthened. The Office of Minority Inclusion, whose goal will be to make sure that all Americans have the equal protection of the work of the work of the entire federal financial regulatory framework is included in this bill.

“Fairness of access and opportunity, transparency and strong enforcement of securities regulations are vital to bringing our economy back from recession and ensuring that the uncontrolled risk taking on Wall Street will never again have such a devastating impact on the entire economy.”

Congressional Black Caucus Members of the House Financial Services Committee include Rep. Maxine Waters, CA, Rep. Melvin L. Watt, NC, Rep. Gregory W. Meeks, NY, Rep. William Lacy Clay, MO, Rep. David Scott, GA, Rep. Al Green, TX, Rep. Emanuel Cleaver, MO, Rep. Gwen Moore, WI, Rep. Keith Ellison, MN, and Rep. Andre Carson, IN.
 

Cummings Responds To Changes In Executive Compensation

Rep. Elijah E. Cummings (MD-7) was pleased, but remained concerned after published reports indicated Goldman Sachs will alter the way the 30 top executives at that company are paid. Goldman Sachs said Thursday that they will give bonuses to their executive committee in restricted stock, which cannot be cashed in for five years.

Cummings was happy that corporations are showing concern for public opinion, which has been almost universally against massive bonuses. However, he realizes that there will be no change in the economic conditions that led to the largest economic downturn since the Great Depression until the culture at Wall Street firms, like Goldman Sachs, changes.

“Goldman has made an effort,” said Cummings. “But nothing is being done to stop the culture of excessive risk taking. This compensation change is being made to look good on TV. But, until incentives change for traders, and the companies they work for, encouraging them to work toward long-term gains and make wise decisions, rather than short-term money grabs, we are going to be in danger of situations like Bear Stearns, Lehman Brothers, and AIG happening again and again.

I am pleased that companies are listening to Secretary Geithner and the other experts who have explained what caused our economic problems and how to stop them from happening again. I just hope they will actually start making use of that information, looking at long-term goals when setting compensation not merely making short-term changes to please the public.”