A letter to Representative David Price (D-NC) regarding the Emergency Economic Stabilization Act of 2008

Written by: Jim Neal on Sep 29, 2008 11:58 PM EDT

September 29, 2008

The Honorable David Price
House of Representatives
Washington, DC 20515

Dear Mr. Price,

I write you as a constituent and as head of a non-profit organization which brings a voice to those marginalized folks in North Carolina most in need of a government responsive to their plight. I urge you to vote no on the Emergency Economic Stabilization Act of 2008.

The Act fails to protect taxpayers and homeowners; provides an unprecedented subsidy to private sector financial institutions, and grants extraordinary powers to the executive branch to expend taxpayer funds in a capricious fashion without meaningful Congressional oversight. Moreover it provides little in relief for those in the 4th District and across our state most in need of government assistance in these perilous times.

A yes vote of the Emergency Economic Stabilization Act of 2008 will have limited effect on the health of our nation’s economy, encourage further devaluation of the dollar and increase the likelihood of stagflation. Moreover, the abrogation of Congressional oversight in the Act denigrates the doctrine of checks and balances intended to curb abuses of power by one of the three branches of our Federal government. Congress’ recent record of ceding authority to the executive branch, most notably in its Authorization for Use of Military Force Against Iraq Resolution of 2002, has had adverse consequence for our nation.

As a former investment banker who has worked in advising public and private financial institutions during my tenure with Goldman Sachs, Salomon Brothers Inc (subsequently acquired by a progenitor of Citigroup) and Bear Stearns. I have worked, as well as studied at the University of Chicago, with many of the executives from those firms as well as others at JPMorgan Chase, Morgan Stanley, WAMU, Lehman Brothers and Merrill Lynch. I was a colleague with investment bankers currently advising Secretary Paulson on the Department of Treasury’s ongoing privatization of private-sector firms and drafting of the Emergency Economic Stabilization Act of 2008. They have succeeded in their mission to protect the interest of their shareholders. And, while an honorable public servant, Secretary Paulson did place nearly $800 million of common stock which he owned in Goldman Sachs into a blind trust attendant to his confirmation two years ago.

Conflicts of interest abound and will remain unchecked if the Act is passed.

Sincerely yours,

Jim Neal

Tags:
Location: Chapel Hill, NC 27514