As Congress and President Bush rushed to pass legislation to bail out Wall Street last fall, Ed Mierzwinski, a senior fellow in our national federation’s Washington, D.C. office, warned that the law didn’t do enough to hold banks accountable or to protect Americans.
“The hastily developed law gave unprecedented spending authority to a single individual in the administration but lacked basic protections for taxpayers and assistance to homeowners,” said Mierzwinski.
For example, in December, the government invested $20 billion in Citigroup and backed more than $300 billion worth of the company’s loans and securities. “It’s sweet for Citigroup,” said Mierzwinski, in a story posted on TheHill.com, “[but] I don’t see the taxpayers getting the benefits they need.”Aided by contributions from our e-mail activists in support of our Main Street Before Wall Street platform, Mierzwinski and NJPIRG staff worked to correct the shortcomings of the bailouts. We advocated consumer and taxpayer protections, argued that priority should be given to efforts to stabilize the housing market by protecting homeowners and neighborhoods, and opposed using taxpayer funds to pay for future executive bonuses.