Washington, DC—Senate Majority Leader Harry Reid made the following statement today in response to the Federal Reserve’s bailout of Wall Street investment banks, even as the Administration opposes to helping families threatened with foreclosure stay in their homes:
“The Federal Reserve is right to be concerned about the serious economic challenges facing millions of Americans today. It is essential that the federal government take proactive steps to head off even deeper economic problems. But these steps must be fair to both taxpayers and homeowners.
“The Federal Reserve’s latest actions appear to shift large risks to taxpayers, who may find themselves on the hook for billions in worthless securities.
“The public has a right to know why President Bush and his Administration believe this bailout is necessary and what steps they are taking to both protect taxpayers and to hold accountable those whose bad decisions led to this crisis. Now that the President has shown his willingness to bail out Wall Street at taxpayer expense, I hope he will drop his opposition to proposals designed to help ordinary homeowners by giving them the same bankruptcy protections available to other Americans.”