NAA Submits Letter to Treasury Secretary Henry Paulson
To: NAA Members
From: Lance Walker, Chairman, Government Relations Committee
Date: Monday, September 22, 2008
Re: NAA Letter to Department of Treasury Secretary Henry Paulson
Click here to view letter
Administration officials, Congressional leadership and media outlets have referenced recently the potential resurrection of the Resolution Trust Corporation (RTC) which was initiated in the 1980s to liquidate assets at auction under the care of the Federal government.
In response to the government considering the potential resurrection of RTC or an agency charged with similar responsibilities of the RTC, last Friday the NAA submitted the following letter to Secretary Henry Paulson to offer its expertise and assistance. The NAA firmly believes that any discussion regarding the liquidation of illiquid assets should involve the association and its members.
Secretary Paulson, Federal Reserve Chairman Ben Bernanke, Securities & Exchange Commission (SEC) Chairman Chris Cox met with Congressional leadership on Thursday, September 18, 2008 to discuss the current financial crisis impacting the nation's economy. Administration officials called upon Congress to develop legislation to assist Wall Street and major lending institutions to prevent a potential stock market crash or depression.
The Treasury Department requested the legislation include the following:
- Grants the Treasury Department the power to buy up $700 billion mortgage-backed assets from firms.
- In consultation with the Federal Reserve, allows the Treasury to buy other assets if it is necessary to stabilize financial markets.
- Increases the U.S. debt limit to $11.3 trillion
- Requires reports to Congress on the program's status, starting three months after it is setup on a semiannual basis after that.
- Authorizes the program for a two-year period.
- Mortgage products will be managed by a private, non-partisan firm. Cash and any profits will be returned to the Treasury to benefit taxpayers.
Pressure is currently on Congress to develop and pass legislation before its recesses on Sunday, September 28, 2008. We will keep you informed as to their progress.
NAA President Randy Wells Letter to Treasury Secretary Henry Paulson