Full Text of HR0761 95th General Assembly
HR0761 95TH GENERAL ASSEMBLY
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HR0761 |
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| HOUSE RESOLUTION
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| WHEREAS, The onrushing financial crisis involving home
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| mortgages, debt instruments of all types, and the banking | 4 |
| system
of the United States threatens to set off an economic | 5 |
| collapse
worse than the Great Depression of the 1930s; and
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| WHEREAS, Millions of Americans are faced with foreclosure | 7 |
| and
loss of their homes over the coming months; and
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| WHEREAS, The hedge funds which spread this financial | 9 |
| collapse
among markets worldwide, by dominating speculation in | 10 |
| all those
markets, are now going bankrupt and demanding | 11 |
| government bailout
of their securities and derivatives, and the | 12 |
| nominal value of
the derivatives based on mortgages alone is | 13 |
| the size of the
combined GDP of the nations of the world; and
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| WHEREAS, This financial crisis threatens the integrity of
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| both Federal and State chartered banks, as typified by the run
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| on deposits of Countrywide Financial Corporation in California
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| on August 16, which could wipe out the life savings of too many
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| American people and drastically undermine the economic | 19 |
| stability
of our states and cities; and
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| WHEREAS, Under similar circumstances in the 1930s, | 21 |
| President
Franklin D. Roosevelt successfully intervened to |
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| protect banks
and homeowners, addressing Congress with a | 2 |
| "declaration of
national policy" on April 13, 1933, which | 3 |
| stated "that the broad
interests of the Nation require that | 4 |
| special safeguards should
be thrown around home ownership as a | 5 |
| guarantee of social and
economic stability, and that to protect | 6 |
| homeowners from
inequitable enforced liquidation in a time of | 7 |
| general distress
is a proper concern of the Government"; | 8 |
| therefore, be it
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| RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE | 10 |
| NINETY-FIFTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we | 11 |
| call upon Congress to take emergency action to protect | 12 |
| homeowners and banks by enacting a Homeowners and Banks | 13 |
| Protection Act specifically to: | 14 |
| (1) Establish a Federal agency to place Federal and | 15 |
| State chartered banks under protection, freezing all | 16 |
| existing home mortgages for a period of time, adjusting | 17 |
| mortgage values to fair prices, restructuring existing | 18 |
| mortgages at appropriate interest rates and writing off | 19 |
| speculative debt obligations of mortgage-backed | 20 |
| securities, financial derivatives and other forms of | 21 |
| financial pyramid schemes that have brought the banking | 22 |
| system to the point of bankruptcy; | 23 |
| (2) Declare a moratorium on all home foreclosures for | 24 |
| the duration of the transitional period, allowing families | 25 |
| to retain their homes. Monthly payments, the equivalent of
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| "rental payments", shall be made to designated banks, which
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| can use the funds as collateral for normal lending | 3 |
| practices,
thus recapitalizing the banking system. These | 4 |
| affordable
monthly payments will be factored into new | 5 |
| mortgages,
reflecting the orderly deflating of the housing | 6 |
| bubble, the
establishment of appropriate property | 7 |
| valuations and reduced
fixed mortgage interest rates. | 8 |
| While this may take several
years to achieve, in the | 9 |
| interim period no homeowner shall be
evicted from his or | 10 |
| her property, and the Federal and State
chartered banks | 11 |
| shall be protected so that they can resume
their | 12 |
| traditional functions, serving local communities and
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| facilitating credit for investment in productive entities; | 14 |
| and | 15 |
| (3) Authorize Governors of several states to assume the | 16 |
| administrative responsibilities for implementing the | 17 |
| program, including the "rental" assessments to designated | 18 |
| banks, with the Federal government providing the necessary | 19 |
| credits and guarantees to assure the successful | 20 |
| transition; and be it further
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| RESOLVED, That suitable copies of this resolution be | 22 |
| delivered to
the President of the United States and to each | 23 |
| member of the
Illinois congressional delegation for immediate | 24 |
| action.
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