08 LC 35
0726
House
Resolution 1153
By:
Representatives Mitchell of the
88th,
Williams of the
165th,
Watson of the
91st,
Mangham of the
94th,
Stephenson of the
92nd,
and others
A
RESOLUTION
Urging
the Congress of the United States to enact a "Homeowners and Bank Protection
Act" for the protection of homeowners and banking institutions; and for other
purposes.
WHEREAS,
the growing financial crisis involving home mortgages, debt instruments of all
types, and the banking system of the United States threatens to set off an
economic collapse with a potentially worse economic impact than was experienced
in America during the Great Depression of the 1930s; and
WHEREAS,
millions of Americans are currently faced with impending foreclosures and the
loss of their homes; and
WHEREAS,
hedge funds, which spread this financial collapse among markets world-wide, are
now going bankrupt and demanding government bailout of their securities and
derivatives, and the nominal value of the derivatives based on mortgages alone
is the size of the combined GDP of the nations of the world; and
WHEREAS,
this financial crisis threatens the integrity of both federal and state
chartered banks, as typified by the run on deposits of Countrywide Financial
Corporation in California on August 16, 2007, and such crisis could wipe out the
life savings of many American people, thereby drastically undermining the
economic stability of our states and cities; and
WHEREAS,
under similar circumstances in the 1930s, President Franklin D. Roosevelt
successfully intervened to protect banks and homeowners, addressing Congress
with a "declaration of national policy" which stated, "the interests of the
Nation require that special safeguards should be thrown around home ownership as
a guarantee of social and economic stability, and that to protect homeowners
from inequitable enforced liquidation in a time of general distress is a proper
concern of the government."
NOW,
THEREFORE, BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES that this body hereby
urges the members of the United States Congress to take emergency action to
protect homeowners and banks and to enact a "Homeowners and Bank Protection
Act," which legislation shall:
(1)
Establish a federal agency for the protection of federal and state chartered
banks;
(2)
Include specific mortgage protections for a limited time, allowing the economy
to regain stability during this transitional period, including freezing all
existing home mortgages for a limited period of time, adjusting mortgage values
to fair prices, restructuring existing mortgages at appropriate interest rates,
and writing off speculative debt obligations of mortgage-backed securities,
financial derivatives, and other forms of financial pyramid schemes that have
brought the banking system to the point of bankruptcy;
(3)
Declare a moratorium on all home foreclosures for the duration of the
transitional period, allowing families to retain their homes and to establish
monthly payments which shall be the equivalent of rental payments, to be made by
such homeowners to designated banks, and allow these funds to be used by such
banks as collateral for normal lending practices, thus re-capitalizing the
banking system; and
(4)
Authorize states to assume the administrative responsibilities for implementing
the program created by Congress while the federal government shall continue
providing any necessary credits or guarantees needed to assure a successful
economic transition.
BE
IT FURTHER RESOLVED that the Clerk of the House of Representatives is authorized
and directed to transmit an appropriate copy of this resolution to the President
of the United States and to each member of the Georgia congressional delegation.