Sep 22 2008

Graham Statement on Financial Rescue Plan

WASHINGTON – U.S. Senator Lindsey Graham (R-South Carolina) today made this statement on the Wall Street rescue plan proposed by Secretary Paulson and congressional efforts to place limits on executive compensation.

On the Proposal from Secretary Paulson:

“I respect Secretary Paulson, but no individual should have this much ‘blank check’ authority.  The oversight and accountability provisions in the initial proposal were limited and must be strengthened. 

“It is imperative Congress work quickly and cooperatively with the Administration to address our financial problems before they get worse. 

“I realize any proposal will not contain all provisions I like or support.  I do hope however we give further consideration to the creation of an independent board made up of Republicans, Democrats, and Independents who would have oversight over any government’s expenditures on a rescue plan.  There is merit in this approach and I hope it would be an essential ingredient in any bailout plan.  We need to bring the best minds in our nation together to help solve a very difficult problem. 

“Now is the time to focus on solutions, not empty rhetoric.” 

On Limits on Executive Compensation for Participating Firms:

“Taxpayers should not subsidize multi-million dollar buyouts for CEO’s and other top managers who created this problem.  If a company participates in a proposed government rescue plan, there should be limits on the executive’s compensation.  They should not be rewarded for their massive failures.  The last thing we need is an executive of a failed firm walking away with millions.”