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Immediately
September 30, 2008



Statement From State Comptroller Thomas P. DiNapoli, and City Comptroller William C. Thompson on Congress’ Failure to Pass Bailout Legislation

“We are very disappointed that Congress failed to pass a bailout package yesterday. This inertia only underscores the unfortunate reality that the crisis in confidence that is gripping our financial markets is rooted in a crisis of leadership in Washington.

The same lack of transparency and accountability that have defined our financial regulatory system in recent years were on full display during bailout negotiations.

American taxpayers are being asked to bail out those who created this crisis by engaging in unsound and short-sighted business practices. Yet information about the true cost of the bailout, the implications of granting such broad authority to the Treasury Department, and the long-term impact the federal deficit increase will have on all of us is lacking.

Nevertheless, the credit crunch is not just squeezing the wealthiest Americans, but also average families, homeowners, and small businesses. While no legislation will satisfy all parties, it is vital that the Congressional leadership move quickly to develop the best solution as soon as possible. This is not merely a Wall Street bailout, but a Main Street backstop.

New York is hemorrhaging jobs – perhaps as many as 40,000, and we have a substantial economic interest in seeing that this crisis is addressed. Every job in the financial sector creates two jobs in the City and one in the suburbs, including security guards, food service workers, and back office personnel.

Continued dysfunction in Washington is exacting a heavy price on New York and the rest of the nation. Stabilizing the current situation is of paramount importance to all New Yorkers.”

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