Melancon Responds to Financial Crisis (unlike RalphHall)

Melancon: “Never Surrender to Financial Terrorism”

“The wizards of Wall Street are threatening the survival of our republic and the free market,” said Glenn Melancon, Democratic Candidate for US Congress in Texas’ Fourth Congressional District. “They want Congress to surrender budgetary authority to the President just like it surrendered War Powers during the debate over Iraq. It was wrong then, and it’s wrong now. We must have democracy, accountability and transparency.”

The Constitution is clear—Congress, not the President nor the Federal Reserve—is the “decider.” Congress decides how much to spend and what to spend it on. George Bush’s request for a blank check to bail out Wall Street strikes at the very heart of our Constitution.

“George Bush’s irresponsible plan to save Wall Street throws back the curtain on corporate hypocrisy and control,” said Melancon. “Every time average Americans demand a fair chance to compete in the global market place, large corporations spend billions of dollars to fight them. They’ve said “no” to affordable health care, clean energy, smaller class sizes, and fair trade.”

“We must never surrender to financial terrorism,” said Melancon. “Congress should demand a fair price, real security, transparency and accountability in exchange for check.”

Corporate Transparency and Accountability

1) Punishment for corporate executives: Any out-going executive asking for a government handout must agree to surrender all stock options, bonuses, and “golden parachutes.” Failed executives shouldn’t be rewarded with tax-payer dollars.

2) Require performance-based compensation packages: Stock holders must be the ultimate beneficiaries of a company. Executive pay must be directly tied to long-term stock performance.

3) Restore Independence of Directors: Corporate boards must be composed of individuals who are free of conflicts of interest. Large stock-holders shouldn’t sit on their own boards.

Marketplace Transparency and Accountability

1) Expose derivatives to public scrutiny: Secret derivatives are insecurities, not securities. Publicly traded companies must disclose all mathematical formulas used to calculate profits and risks.

2) Restore the firewalls between commercial and financial banks: In today’s market financial fires spread faster, not slower. Firewalls are essential to containing the disaster.

3) Require increased capital reserves: Banks and other financial institutions can’t function without real assets to back up their loans. Banks must have sufficient capital reserves to cover their losses.

“There are two basic requirements for representative government and free market capitalism—transparency and accountability,” said Melancon. “Neither can survive if secret deals allow a handful of people rig the system. We must have real changes to protect our hard-earned money.”

www.MelanconForUSCongress.net