Wes Hickman (202-224-5972) or Kevin Bishop (864-250-1417)

WASHINGTON – U.S. Senator Lindsey Graham (R-South Carolina) made this statement on the auto bailout plan that passed by the House of Representatives yesterday.  The plan is scheduled to come before the Senate in the next few days.

Graham said:

“I oppose the current auto bailout plan. 

“Simply put, the model Detroit has created will not sustain itself in the global economy.  They need to make significant, structural changes before they receive federal assistance and those changes should be made in the private sector. 

“No one wants to see these companies fail and workers displaced.  I feel for the car dealers and their employees who are being hurt by years of bad decisions made by the leadership of the Big 3.  But I also realize that unless major, fundamental changes are made in the way the Big 3 operate, they will likely find themselves right back in the same situation. 

“I will continue to be open to proposals which help return the auto companies to profitable enterprises and protect the taxpayer.  The current plan does not meet those standards.”

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Due to the limited number of tickets allocated to each office, requests to Senator Graham’s office have exceeded his allotment and Senator Graham is not able to take ticket requests at this time.  There will be a public viewing area on the National Mall for those constituents who wish to attend but were unable to obtain tickets to the inaugural ceremony.

For more information about Inauguration Day, please visit the Joint Congressional Committee on Inaugural Ceremonies website.

Wes Hickman (202-224-5972) or Kevin Bishop (864-250-1417)

WASHINGTON – U.S. Senator Lindsey Graham (R-South Carolina) has been recognized as a True Blue member of the Senate for his unwavering commitment to the family.  The award was presented by FRC Action, the legislative arm of the Family Research Council, and Focus on the Family Action. 

The award honors member of the House and Senate who have exhibited extraordinary leadership and commitment to the defense of family, faith, and freedom.  The scorecard covers Senate votes during the two-year 110th Congress. Recipients of the award voted consistently for pro-life and pro-family issues.

The votes included efforts to:

• Defend grassroots organizations rights to influence public policy
• Provide health care for unborn children
• Confirm Judge Leslie Southwick to the U.S. Court of Appeals
• Oppose Embryonic Stem Cell Research
• Oppose Funding for International Coercive Abortion and Sterilization Programs
• Oppose Federal Thought Crimes Bill
• Prevent Abortion Funding in Indian Health Services

“The Members of the 110th Congress who received this award have been consistent, stalwart allies of American families,” said FRC Action President Tony Perkins.  “These Members are to be commended for supporting public policy that values human life, protects our religious liberties, and upholds the institutions of marriage and the family.”

“I applaud these Members for defending pro-family and pro-life policies that have been under attack this past year,” said Perkins.  “Values voters should be encouraged by these Members who have shown a commitment to protecting and strengthening the family.”

To order a copy of the Vote Scorecard, visit FRC Action’s website at http://www.frcaction.org.

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Congress faced an unpleasant but necessary choice of approving the financial rescue plan.  We did not have the luxury of kicking the can down the road like we’ve done with Social Security and entitlements.  We could not hope somebody braver than us would come along and have courage that we could not muster.  This was on our watch and time was of the essence.

The conservative Heritage Foundation said it was, “only a matter of time” before the fallout hit Main Street “with potentially devastating economic effects for typical American households.”  I agreed with their analysis but they were not saying anything people in South Carolina didn’t already know.

The credit crisis gripping our nation was already having a negative impact on Main Street.  I heard from the retirement communities where retirees rely on dwindling 401(k)’s and the plumber who is worried he can’t get a short-term loan to make payroll.  I heard from the restaurant owner who wants to expand and the college student and parents who were worried college loans were drying up.  And I heard from the homeowner who fears for her job and the auto dealer who is about to close because customers cannot get credit.

A primary motive was to act and ensure credit was available at reasonable rates and near-collapses leading to fire-sale prices like Wachovia did not spread throughout the nation.  Banks and lending institutions -- the financial engines of our economy -- are at tremendous risk.

For the common good, we had to find a solution to this problem before more people lost their homes, businesses shut their doors, college dreams were dashed, and additional jobs were lost.  Simply put, my support for the financial rescue plan was about helping the people I grew up with and the people I represent – not Wall Street.

Major Revisions in the Law

The bill that passed the Senate had dramatically changed since it was first introduced.

One common misconception is the plan will cost taxpayers $700 billion.  Over time and as the economy improves, the taxpayer will recoup money from the sale of troubled assets.

Warren Buffett, one of the most respected business leaders in our nation’s history, even thinks that after all is said and done taxpayers will actually make money.  Buffett said, “If we could do the deal that is available to the United States government and have its staying power, and its borrowing costs, we would make significant money. … I would love to have 1 percent of the profit or loss that results from buying these assets from troubled financial institutions.”

Either way, the costs to the taxpayer will be less than $700 billion and significantly less than the costs of a deep, severe, long-lasting recession.

A major improvement was an increase from $100,000 to $250,000 in Federal Deposit Insurance Corporation (FDIC) insurance on bank accounts and the Securities and Exchange Commission (SEC) revision of ‘mark to market’ accounting practices.

Another important change was that all funds collected will go toward retirement of our national debt – not shady groups like ACORN pushing a far left political agenda.

The legislation also contains important safeguards such as an oversight board to review the governments acquisition of troubled assets, limits on executive compensation packages and a prohibition on ‘golden parachutes’ for failed executives.  A ‘clawback’ provision allows the government to recover bonuses and incentive compensation paid to a senior executives based on materially inaccurate information.

Financial Rescue One Piece of the Puzzle

Unfortunately, we have many difficult days ahead as our economy tries to regain its footing.  Just last week jobless claims reached a seven year high and August factory orders fell by the largest amount in two years.  It’s a clear sign that the manufacturing sector – which is a major driver of our state’s economy – is already feeling the effects of the credit crunch.

This package won’t solve all of our problems, but without it the American taxpayer faces even greater exposure.

Where From Here?

I remain committed to making sure the root cause of the problem -- mortgages being given to people who never should have had them -- does not happen again.  It is obvious lending standards and procedures were compromised.

I support the FBI and federal agencies looking into Wall Street firms, mortgage lenders Fannie Mae and Freddie Mac, and other financial institutions at the core of this disaster.  We must find out what happened and hold the appropriate people and companies responsible.

As we learn more about how the house of cards was constructed and eventually came tumbling down, we must put better regulations and oversight in place.  Failure to act only lays the groundwork for similar disasters in the future.

The financial rescue plan will prove to be the first step – not the last – in cleaning up our financial mess.

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