ZIMMER RESPONDS TO RECENT DEVELOPMENTS IN FINANCIAL CRISIS

Lawrenceville, NJ –U.S. Senate candidate Dick Zimmer today issued the following statement in response to recent developments in the financial crisis:

“I am encouraged that Secretary Paulson has deemphasized the purchase of toxic paper by American taxpayers, which had been the centerpiece of the original plan submitted to Congress by George Bush and endorsed by Senator Lautenberg.  As I have consistently stated since September, this approach could well lead to huge overpayments by taxpayers, unjustified windfalls for the institutions that helped cause the crisis in the first place, gross conflicts of interests and a failure to address the heart of the problem.  

“It is vital that the U.S. government approach this situation with the best interests of the taxpayer at heart.  From the beginning, I have insisted that taxpayers ought to be getting a better deal for their tax dollars by demanding equity in the banks that receive government assistance.  I am pleased that the Administration has decided to change direction and hopeful that that its new approach will provide a better deal for average Americans who are footing the bill.

“I am also pleased that other developed nations are aggressively addressing the financial crisis in a coordinated manner. There will likely be difficult days ahead for the American economy and the economies of the rest of the world, but at least a path forward is now visible. 

“Congress should immediately begin to put in place a regulatory system to assure that such a crisis does not happen again.  It is clear that Senator Lautenberg cannot participate constructively in this effort.  He did nothing to avert this crisis and in fact voted for legislation that helped cause it.  He voted for a blank-check bailout bill that did not provide adequate safeguards.  New Jersey needs new leadership in the Senate to make sure that Main Street never again bails out Wall Street.” 

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