Oklahoma City, OK 73105
For Immediate Release: November 19, 2008
Johnson Plans Resolution in Response to Credit, Banking Crisis
In response to increasingly poor economic indicators and a nationwide
credit and mortgage crisis, a resolution filed by Sen. Constance
Johnson and Rep. Jabar
Shumate will encourage Congress to enact the Homeowners and
Banks Protection Act (HBPA). Johnson filed a similar resolution
in April, when economists were warning of an impending credit crunch
and collapse in the housing market, but the Legislature failed to
act on the proposal.
Senate Concurrent Resolution 1 will urge Congress to enact legislation
that would freeze foreclosures, halt evictions and appropriately
lower mortgages and payments. The Oklahoma City Senator described
the Act as the best way to deal with an ongoing economic crisis
currently devastating the banking system as a whole. Johnson said
the problem is not limited to subprime mortgage lending, but is
broader in scope.
“In addition to struggles with foreclosure, families are
faced with inflation and significant price increases for the most
basic necessities,” said Johnson, D-Oklahoma City. “We
should be doing everything in our power to encourage the government
to take action now and protect our families as well as banks, which
face unique challenges of their own in a credit crisis. Now that
we fully understand the seriousness of the problem, I think it’s
time for the Legislature to make a statement and let Oklahoma families
know that we’re in their corner.”
Johnson said the HBPA would protect federal and state chartered
banks, keeping them open for investments in agriculture, industry
and infrastructure while eliminating increasingly large amounts
of speculative debt. As introduced in 2008, prior to this past summer’s
bailouts, the Act forbids entirely any bailouts and all inflationary
money printing to speculators and investment banks. Forcing the
taxpayers to shoulder the burden of Wall Street’s losses,
Johnson said, is simply irresponsible leadership.
Shumate said Oklahomans must demand that their leaders take action
now, as foreclosures are on the rise with 1 in 58 homes currently
in foreclosure in Oklahoma City alone.
“We can’t sit idly by and watch this situation deteriorate
further without taking action to protect our citizens,” said
Shumate, D-Tulsa. “We’ve learned our lesson from previous
economic crises, and now it’s time for us to prevent this
from becoming an even greater problem for families and business
owners. If we don’t act soon, we increase the potential for
a very serious economic collapse.”
Similar resolutions have already been approved by state legislatures
in Alabama and Rhode Island.
Additionally, resolutions supporting the Homeowners and Bank Protection
Act have been approved by numerous cities throughout the country.
Senate Concurrent Resolution 1 will be available for consideration
in the upcoming 2009 legislative session, and will likely be assigned
to the Senate Finance Committee.
For more information
Senator Johnson's Office: (405) 521-5531