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Pelosi: The Legislation Has Failed But the Crisis Has Not Gone Away, We Must Work in a Bipartisan Way to Pass New Legislation

September 29, 2008

Contact:Brendan Daly/Nadeam Elshami, 202-226-7616

Washington, D.C. -- Speaker Nancy Pelosi, Chairman Barney Frank of the House Financial Services Committee, and House Democratic leaders held a news conference this afternoon following the defeat of the Emergency Economic Stabilization Act of 2008. Below are her opening remarks:

"Good afternoon. As you know, about a week and a half ago, the Administration visited Capitol Hill and described the crisis in our financial markets and in our economy. A couple of days later, they presented us with their legislation, and since then we have worked in a bipartisan way to improve that legislation. We've entered into those conversations in the spirit of bipartisanship, with the understanding that each side would have half of our votes to pass the bill.

"Today when the legislation came to the floor, the Democratic side more than lived up to its side of the bargain. While the legislation may have failed, the crisis is still with us.

"Some of the issues that we worked on with the Republicans to improve the initial legislation related to oversight and protecting the taxpayer as we stabilize the markets. It was about ownership and equity in return for some of the investments that were made. It was about forbearance for homeowners so they could stay in their home. It was about corporate pay and how that had no more golden parachutes, and it was also about, again, oversight, oversight, oversight. I think these were major improvements to the bill, and as I say, they were bipartisan.

"Again, the Administration pressed upon us the seriousness of this crisis in terms of the markets. We know how serious this is in terms of the middle class in our country. Whether it's a question of credit for small businesses or homeowners, for protecting savings for people, their penchants for retirement, for the education of their children. Keeping the store on the corner open to service the needs of the people in the neighborhood. America's communities have been feeling the downturn in the economy for a very long time.

"In any event, where we go from here, is that we still have those concerns about everyday Americans, about the concerns of the middle class about how they may be affected by the crisis happening on Wall Street. We want to insulate them from that, we want to protect them from that, and the lines of communication remain open.

"I just spoke with Secretary Paulson and I spoke with Senator Reid. We delivered on our side of the bargain. The President impressed the Members about the gravity of the situation; that action is necessary to stabilize the markets and to protect the taxpayer.

"Clearly, that message has not been received yet by the Republican Caucus. But again, we extend a hand of cooperation to the White House, to the Republicans, so that we can get this issue resolved for the benefit of America's working families, to strengthen our economy, and therefore strengthen our country

"We worked together as a team in a bipartisan way, and I wanted to acknowledge, especially the work of our Chairman, Barney Frank. He has great knowledge of these subjects, a great intellect to deal with the challenges and I think never has that intellect and knowledge been more helpful to the American people.

"Rahm Emanuel, who has been in politics and spent time in the markets, was a tremendous assist to us in the negotiations so that we could find our common ground, so I want to salute him. Our Majority Leader, Mr. Hoyer, and our distinguished Whip, James Clyburn, deserve a great deal of credit for this, their part in all these proceedings including getting 60 percent of the House Democrats to support a bill, which isn't our bill. This is the President's proposal, acted upon in a bipartisan way, improved upon in that manner, but evidently, not voted upon in that way.

"So again, the legislation has failed but the crisis has not gone away. We must work in a bipartisan way, in order to have another bite of the apple, in terms of some legislation.

"With that I'm pleased to yield to the Majority Leader, Mr. Hoyer."