Bill Text: NJ AR33 | 2010-2011 | Regular Session | Introduced
Bill Title: Urges federal government to require financial institutions to reduce interest rates on existing loans and credit card balances in exchange for federal bailout funds.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Introduced - Dead) 2010-01-12 - Introduced, Referred to Assembly Financial Institutions and Insurance Committee [AR33 Detail]
Download: New_Jersey-2010-AR33-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Assemblyman ANTHONY CHIAPPONE
District 31 (Hudson)
Assemblyman ALBERT COUTINHO
District 29 (Essex and Union)
SYNOPSIS
Urges federal government to require financial institutions to reduce interest rates on existing loans and credit card balances in exchange for federal bailout funds.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Assembly Resolution urging the federal government to require a reduction of interest rates on existing debt as a condition of public assistance for troubled financial institutions.
Whereas, The federal government has provided public funds to ailing financial institutions in an effort to stabilize the national financial system and improve the economy and should require, in exchange, a tangible benefit for the taxpayers, including a reduction of interest rates on existing debt; and
Whereas, Financial institutions have received approximately $350 billion in taxpayer money through the Troubled Asset Relief Program (TARP) in a so-called "bailout" distributed by the United States Department of the Treasury, which was intended to stem the increase in mortgage foreclosures and enhance the availability of credit, thereby benefiting the economy in the face of a serious economic crisis; and
Whereas, Despite receiving these substantial sums, financial institutions seem reluctant to lend money and, instead, have reportedly utilized the federal funds to boost capital and to pay out over $18 billion in cash bonuses to employees in 2008, the sixth-highest bonus payout in history, while approximately 2.6 million individuals across the country lost their jobs, the most since 1945; and
Whereas, Despite a pledge not to raise credit card rates on individuals already hard-hit by rising unemployment and the threat of mortgage foreclosures, credit card companies that received bailout funds have reportedly reduced credit limits and increased minimum payments and interest rates on existing consumer accounts, without good cause, simply to boost corporate income; and
Whereas, Congress has recently released an additional $350 billion in public funds to be utilized by the Treasury and a new bailout plan is contemplated for financial institutions in the near future, in exchange for which the Congressional leadership has indicated it seeks "equity for the American people"; and
Whereas, Equity for the American people, which would restore public confidence in the financial system and boost the economy, should include a cut in interest rates on existing credit card accounts and loan balances so that hard-working Americans may keep up with their financial obligations and not be further penalized during the present economic crisis; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. This House respectfully urges the President of the United States, the Secretary of the United States Department of the Treasury, and the United States Congress to require financial institutions that receive public funds from TARP or any similar funding mechanism intended to stabilize the financial system and improve the national economy to lower interest rates on existing debts, including, but not limited to, existing loans and credit card accounts, by at least 50 percent.
2. Duly authenticated copies of this resolution, signed by the Speaker of the General Assembly and attested to by the Clerk thereof, shall be transmitted to the President of the United States, the Secretary of the Department of the Treasury, the Majority and Minority Leaders of the United States Senate, the Speaker and the Majority and Minority Leaders of the United States House of Representatives, and every member of Congress elected from this State.
STATEMENT
This resolution urges the federal government to require financial institutions that receive public funds as part of a so-called "bailout" to reduce interest rates on existing loans and credit card accounts.
Financial institutions have received approximately $350 billion in taxpayer money through the Troubled Asset Relief Program (TARP), distributed by the United States Department of the Treasury, which was intended to stem the increase in mortgage foreclosures and enhance the availability of credit, thereby benefiting the economy in the face of a serious economic crisis. Despite receiving these substantial sums, financial institutions remain reluctant to lend money and, instead, have reportedly utilized the federal funds to boost capital and to pay out over $18 billion in cash bonuses to employees in 2008, the sixth-highest bonus payout in history, while approximately 2.6 million individuals across the country lost their jobs, the most since 1945. Moreover, despite a pledge not to raise credit card rates on individuals already hard-hit by rising unemployment and the threat of mortgage foreclosures, credit card companies that received bailout funds have reportedly reduced credit limits and increased minimum payments and interest rates on existing consumer accounts, without good cause, simply to boost corporate income.
Congress has recently released an additional $350 billion in public funds to be utilized by the Treasury and a new bailout plan is contemplated for financial institutions in the near future, in exchange for which the Congressional leadership has indicated it seeks "equity for the American people." True equity for the American people would restore public confidence in the financial system and boost the economy and should include a cut in interest rates on existing credit card accounts and loan balances by 50% so that hard-working Americans may keep up with their financial obligations and not be further penalized during the present economic crisis.
