Restore The Economic Safety-Net

Resolution Number BRGL09.06

Restore The Economic Safety-Net

WHEREAS, the American people have been told for years that the terrible days of the Great Depression could not be repeated because President Franklin D. Roosevelt had created a safety net by regulating banks, credit, and investments; and

WHEREAS, the recent Bush administration and Republicans in Congress allowed the banks, credit, investments, non-bank financial institutions, Fannie Mae and Freddie Mac to operate unregulated and unchecked, and they avoided regulating new financial instruments such as credit default swaps; and

WHEREAS, this lack of regulation led to an economy without legs, that collapsed with numerous failures of financial institutions, a near total credit freeze, de facto nationalization of major financial institutions, the loss of trillions of dollars in investments, bankruptcies and high unemployment, and a world-wide economic crisis;

THEREFORE BE IT RESOLVED, that the California Democratic Party supports the Obama administration and the Democrats in Congress to enhance and expand regulations for the banking industry, Wall Street, Fannie Mae, Freddie Mac and financial institutions such as AIG that have heretofore never been regulated (or were weakly regulated), and set standards for financial derivatives such as credit default swaps; and

BE IT FURTHER RESOLVED, that the California Democratic Party is in full support of the Administration's and Congressional Leadership's efforts to cut executive salaries and bonuses for those businesses that benefited from the government's bailout.

Author: Craig Athon, AD 49; Los Angeles County Democratic Party

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Adopted by the Executive Board
Of the California Democratic Party
At its Executive Board Meeting
Hyatt Regency Mission Bay Hotel, San Diego
November 15, 2009

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