Organizing for America

DEBATE REALITY CHECK: OBAMA A LEADER ON FINANCIAL CRISIS

Tonight, Senator Biden said “Barack Obama laid out four basic criteria for any kind of rescue plan here. He first of all said there has to be oversight, we are not going to write any check to anybody unless there is oversight of the Secretary of Treasury. He secondly said you have to focus on homeowners and folks on main street. Thirdly, he said you have to treat the taxpayers like investors in this case, and lastly, what you have to do is make sure the CEOs don't benefit in this because this could end up in the long run people making money off this rescue plan. So, as a consequence of that it brings us back to maybe the fundamental disagreement between Governor Palin and me and Senator Barack Obama, and that is we are going to fundamentally change the focus of the economic policy. We are going to focus on the middle class because it is when the middle class is growing, the economy grows and everybody does well, not just focus on the wealthy and corporate America.” [Vice Presidential Debate, 10/2/08]

The Facts: Barack Obama Has Been A Leader On The Financial Crisis, The Housing Crisis And Increasing Government Oversight.


FACT: BARACK OBAMA HAS BEEN A LEADER ON THE FINANCIAL CRISIS

· Factcheck.org: “The Record Shows That Obama Has Not Been Quiet On Such Issues And Indeed Has Proposed Measures For Some Time On Topics The Ad Claims McCain Has ‘Led’ On.” “We make no judgment as to which candidate offers better or more effective solutions to the financial crisis or limiting corporate CEOs pay checks. But the record shows that Obama has not been quiet on such issues and indeed has proposed measures for some time on the same topics the ad claims McCain has ‘led’ on.” [Factcheck.org, 9/24/08 ]

· CEO COMPENSATION: Factcheck.org: Obama “Called For Controls On Executive Compensation Much Earlier” Than McCain. The Obama campaign points out that its candidate has called for controls on executive compensation much earlier, sponsoring “say-on-pay” legislation in April 2007 that would have required public companies to hold a nonbinding shareholders vote on CEO pay. McCain hadn’t signed on to the bill, and a senior adviser told the Wall Street Journal that McCain opposed government regulations aiming to fix executive-pay issues.” [Factcheck.org, 9/24/08 ]

o APRIL 2007: Obama Sponsored The Shareholder Vote On Executive Compensation Act. Obama was the chief sponsor of a bill to amend the Securities Exchange Act of 1934 to require a proxy, consent, or authorization for a shareholder meeting occurring on or after January 1, 2009, to permit a separate shareholder vote to approve executive compensation, but the vote would not be binding on the board of directors. [110th, S. 1181, Referred to Banking, Housing, and Urban Affairs, 4/20/07]

FACT: OBAMA INTRODUCED LEGISLATION MORE THAN A YEAR AGO TO ADDRESS MORTGAGE LENDING PRACTICES

· Factcheck.org: In McCain’s September 19th Speech He Called For The Creation Of A Mortgage And Financial Institutions Trust To Keep People In Their Homes Which “Sounds Awfully Similar To The Pronouncements” Of Obama. Factcheck.org wrote, “In his Sept. 19 speech, McCain also called for the creation of a “Mortgage and Financial Institutions trust — the MFI,” which would “keep people in their homes and safe guard the life savings of all Americans by protecting our financial system and capital markets.” Sounds awfully similar to the pronouncements of another presidential candidate.” [Factcheck.org, 9/24/08 ]

· Obama Introduced Legislation in February 2006 to Address Deteriorating Mortgage Lending Practices: After early reports of deteriorating mortgage lending practices and rising foreclosures, Barack Obama introduced the STOP FRAUD Act aimed at stopping mortgage transactions that promoted fraud, risk and abuse. Obama’s legislation provides the first federal definition of mortgage fraud, authorizes stiff criminal penalties against fraudsters, and empowers consumers to make informed decisions through increased funding for housing counseling. [109th, S.2280, 2/14/2006, Read twice and referred to the Committee on Banking, Housing, and Urban Affairs 2/14/2006]

FACT: MCCAIN PROCLAIMED HIMSELF A “DEREGULATOR.” OBAMA HAS CALLED FOR EFFORTS TO REFORM THE REGULATION OF FINANCIAL MARKETS.

· Only Weeks Before the Bear Stearns Collapse, McCain Proclaimed Himself a “Deregulator” and Said “I’m Always for Less Regulation.” McCain told the Wall Street Journal “As far as a need for additional regulations are concerned, I think that depends on the legislative agenda and what the Congress does to some degree, but I am a fundamentally a deregulator. I'd like to see a lot of the unnecessary government regulations eliminated, not just a moratorium.”[Wall Street Journal, 3/3/08]

· Obama Called for Efforts to Restore Public Trust in Capital Markets More than a Year Ago. On September 17, 2007, Barack Obama gave a speech at the NASDAQ in which he rightly foresaw that capital markets cannot succeed without public trust. Obama explained: “there is no dividing line between Main Street and Wall Street” —the struggles of ordinary Americans are at the root of our current financial turmoil, and that we all “have a stake in each other’s success.” Following this speech, in January 2008, former Federal Reserve Chairman Paul Volcker endorsed Obama, saying that the depth of the challenges facing America “demand a new leadership and a fresh approach.” [Obama Speech At Nasdaq, 9/17/07 ; Wall Street Journal, 1/31/08 ]

· Obama Outlined Principles for Revamping Our Financial Market Regulatory Framework Six Months Ago. On March 27, 2008, Barack Obama outlined six detailed principles for how government should correct failures in financial market oversight and move forwards to restore accountability, transparency, and trust. Going well beyond what the Treasury or other candidates would propose, Obama foresaw current challenges in calling for broad sweeping regulatory changes, including permanent oversight for any firm with access to the Fed’s discount window. [Obama Speech, 3/27/08 ]