By Daniel Johnson-Kim, Editor in Chief
Congressman Randy Neugebauer (R-Tex.) voted on Monday against a bill in the House of Representatives that would have approved the most sweeping government intervention in the United States’ financial markets since the Great Depression.
Neugebauer is the representative of the 19th Congressional District, which includes Abilene. He joined 228 congress men of which 95 were Democrats and 133 were Republicans in shooting down the Emergency Economic Stabilization Act, which would have given roughly $700 billion to the federal government to rescue the financial industry. The bill failed 228 to 205, and Congress members scrambled Tuesday to change parts of the bill so it could immediately pass.
“I have been studying this very carefully, I’ve talked to people, I’ve talked to bankers, I’ve talked to people on Wall Street, I’ve talked to economists, I’ve talked to a former FDIC chairman, trying to get my arms around this issue and trying to determine what is the best course of action,” Neugebauer said in a conference call Monday.
The Dow Jones Industrials dropped a record 777 points Monday after the bill failed and rebounded Tuesday more than 400 points. Monday’s drop was the largest in the history of the stock market.
Neugebauer cited his uneasiness with the specifics of the plan and the haste in which the plan was put together as his reasons for voting against the bill. Neugebauer and other Congress members who voted “No” went against the urging of President George W. Bush and Congressional leaders who said the bill was needed to prevent a financial collapse.
After the bill failed Monday, leaders of both parties blamed each other for the bill’s inability to pass the House and give the Treasury Department the needed funds to buy up the bad bonds that were hurting the market. Neugebauer said it was unfair for taxpayers to carry the burden of mistakes made on Wall Street.
“The American taxpayers did not cause this problem and should not have to shoulder the responsibility of bailing out the ones that did,” Neuguebauer said in the statement released by his office.
Scott Dueser, President Chairman and Chief Executive Officer of First Financial Bankshares, the only publicly traded company in Abilene, said the current state of the financial system will not affect consumers on “main street” for a couple of months, but Americans should be concerned; the financial system is in danger if some government intervention is not taken soon.
“I have seen [Neugebauer’s] explanation on that, and he and I had personally visited; he thinks there is a better way to do it,” Dueser said.
Dueser explained that the liquidity of credit available to large banks was shrinking, and that could prove dangerous to the market.
“You can’t sit out there very long and not have credit; it’s like not having oxygen,” Dueser said.
He said partisan politics have no place while Congress tries to figure out a plan that will appease both sides of the aisle and pass a bill that would help resolve the financial crisis.
“These guys need to leave the politics out of it,” Dueser said. “This is not a time to be political; it’s a time to work together.”
According to the Associated Press, congressmen in the House were trying to amend the original bill Tuesday afternoon for a re-vote, and Neugebauer assured his constituents he would work to make sure it was the best plan for the American people
and Wall Street.
“I am committed to working with my colleagues in Congress and the Administration to pass comprehensive legislation that helps support our economy,” Neugebauer said. “However, we must consider all alternatives prior to making a final decision.”
