Jeanne Shaheen on Budget & Economy
Previously Democratic Governor (NH); candidate for Senate 2008
Bush-Sununu self-regulation policy led to financial meltdown
Shaheen said the financial meltdown is a “function of the Bush-Sununu policy.” The Democrat blamed Bush & Sununu for failing to provide oversight of Wall Street, letting financial institutions self-regulate, & for ignoring predatory lending practices.
“Where has John Sununu been on those issues? He’s been in Washington for 12 years--5 years on the Banking Committee,” she said. “He’s been missing in action when it came to cracking down on those practices that led us to the crisis that we’re in today.”
In response, Sununu’s campaign maintained Shaheen is the “last person N.H. needs in an economic crisis” because her “first inclination” is to raise taxes. Shaheen seems to anticipate the tax-and-spend criticism. She said she balanced three budgets when
she was governor and when revenues were lagging, she cut spending.
Sununu has been promoting three priorities: protecting taxpayers’ interests, implementing strong oversight of regulatory markets and promoting policies that encourage long-term growth.
Source: 2008 N.H. Senate Debate on Fosters.com
, Sep 20, 2008
Lack of oversight caused financial crisis; regulation needed
Sununu worked aggressively to carve out a pro-taxpayer position and cited his previous calls for stepped-up regulation of a key mortgage player.
Jeanne Shaheen countered that “the lack of oversight and the lack of accountability that
George Bush and his allies like John Sununu in the Senate supported have really brought us to where we are today.” She pushed for tighter regulations and liquidity-disclosure requirements as well as a consolidated oversight system.
Sununu parried back aggressively, telling how he had long sought to beef up regulation for Fannie Mae and Freddie Mac, the ailing public-private mortgage finance companies seized by the government this month. “That’s an issue where
I’ve led the effort not just in the past year, but going back five years,” Sununu said. He also said taxpayers should be kept off the hook for Wall Street’s failures.
Source: 2008 N.H. Senate debate reported in Concord Monitor
, Sep 19, 2008
Crack down on no-bid contracts; limit pork barrel spending
Washington is borrowing more and more from China and India, saddling our grandchildren with billions and billions in debt, because of runaway spending and giveaways to special interests. As Senator, Jeanne Shaheen will insist we stop the corruption,
crack down on no-bid contracts, make every member of Congress put their names on any pork barrel spending they support, and get back to fiscal accountability.
Source: 2008 Senate campaign website, jeanneshaheen.org, “Issues”
, Mar 2, 2008
Voted YES on $192B additional anti-recession stimulus spending.
- $7 billion Increase in Fund balance appropriation (without fiscal year limitation).
- With respect to the Unemployment Trust Fund and to the Black Lung Disability Trust Fund: Removes the FY2010 limitation as well as the specific dollar amount for such advances, replacing them with such appropriations as may be necessary.
- Increases from $315 billion to $400 billion the maximum loan principal for FY2009 commitments to guarantee single family loans insured under the Mutual Mortgage Insurance Fund (MMIF).
- Increases from $300 billion to $400 billion the limit on new Government National Mortgage Association (GNMA or Ginnie Mae) commitments to issue guarantees under the Mortgage-Backed Securities Loan Guarantee Program.
Proponent's argument to vote Yes:Rep. LEWIS (D, GA-5): This bipartisan bill will provide the necessary funds to keep important transportation projects operating in States around the country. The Highway
Trust Fund will run out of funding by September. We must act, and we must act now.
Opponent's argument to vote No:Rep. CAMP (R, MI-4): [This interim spending is] needed because the Democrats' economic policy has resulted in record job loss, record deficits, and none of the job creation they promised. Democrats predicted unemployment would top out at 8% if the stimulus passed; instead, it's 9.5% and rising. In Michigan, it's above 15%. The Nation's public debt and unemployment, combined, has risen by a shocking 40% [because of] literally trillions of dollars in additional spending under the Democrats' stimulus, energy, and health plans.
We had a choice when it came to the stimulus last February. We could have chosen a better policy of stimulating private-sector growth creating twice the jobs at half the price. That was the Republican plan. Instead, Democrats insisted on their government focus plan, which has produced no jobs and a mountain of debt.
Reference: Omnibus Appropriations Act Amendment;
Bill H.R. 3357
; vote number 2009-S254
on Jul 30, 2009
Voted YES on modifying bankruptcy rules to avoid mortgage foreclosures.
Congressional Summary:Amends federal bankruptcy law to exclude debts secured by the debtor's principal residence that was either sold in foreclosure or surrendered to the creditor.
Proponent's argument to vote Yes:Rep. PETER WELCH (D, VT-0): Citigroup supports this bill. Why? They're a huge lender. They understand that we have to stabilize home values in order to begin the recovery, and they need a tool to accomplish it. Mortgages that have been sliced and diced into 50 different sections make it impossible even for a mortgage company and a borrower to come together to resolve the problem that they share together.
Sen. DICK DURBIN (D, IL): 8.1 million homes face foreclosure in America today. Last year, I offered this amendment to change the bankruptcy law, and the banking community said: Totally unnecessary. In fact, the estimates were of only 2 million homes in foreclosure last year. America is facing a crisis.
Opponent's argument to vote
Sen. JON KYL (R, AZ): This amendment would allow bankruptcy judges to modify home mortgages by lowering the principal and interest rate on the loan or extending the term of the loan. The concept in the trade is known as cram-down. It would apply to all borrowers who are 60 days or more delinquent. Many experts believe the cram-down provision would result in higher interest rates for all home mortgages. We could end up exacerbating this situation for all the people who would want to refinance or to take out loans in the future.
Rep. MICHELE BACHMANN (R, MN-6): Of the foundational policies of American exceptionalism, the concepts that have inspired our great Nation are the sanctity of private contracts and upholding the rule of law. This cramdown bill crassly undercuts both of these pillars of American exceptionalism. Why would a lender make a 30-year loan if they fear the powers of the Federal Government will violate the very terms of that loan?
Reference: Helping Families Save Their Homes Act;
; vote number 2009-S185
on May 6, 2009
Voted YES on additional $825 billion for economic recovery package.
Congressional Summary:Supplemental appropriations for job preservation and creation, infrastructure investment, energy efficiency and science, assistance to the unemployed, and State and local fiscal stabilization, for fiscal year ending Sept. 30, 2009.
Proponent's argument to vote Yes:Rep. DAVID OBEY (D, WI-7): This country is facing what most economists consider to be the most serious and the most dangerous economic situation in our lifetimes. This package today is an $825 billion package that does a variety of things to try to reinflate the economy:
- creating or saving at least 4 million jobs
- rebuilding our basic infrastructure
- providing for job retraining for those workers who need to learn new skills
- moving toward energy independence
- improving our healthcare system so all Americans can have access to quality treatment
- providing tax cuts to lessen the impact of this crisis on America's working families.
argument to vote No:
Rep. JERRY LEWIS (R, CA-51): Most of us would agree that the recent $700 billion Troubled Asset Relief Program (TARP) is an illustration of how good intentions don't always deliver desired results. When Congress spends too much too quickly, it doesn't think through the details and oversight becomes more difficult. The lesson learned from TARP was this: we cannot manage what we do not measure. We cannot afford to make the same mistake again.
Sen. THAD COCHRAN (R, MS): We are giving the executive branch immense latitude in the disbursement of the spending this bill contains. We are doing so without any documentation of how this spending will stimulate the economy. Normally, this kind of information would be contained in an administration budget. For items that have a short-term stimulative effect, most of us will feel comfortable debating their merits as an emergency measure. But there is a great deal of spending that is not immediately stimulative.
Reference: American Recovery and Reinvestment Act;
; vote number 2009-S061
on Feb 10, 2009
Regional transportation network to foster trade & economy.
Shaheen signed the New England Governors' Conference resolution:
Source: NEG/ECP Resolution 25-2: Transportation Corridors 00-NEGC2 on Jul 18, 2000
- WHEREAS the Conference of New England Governors and Eastern Canadian Premiers encourages initiatives furthering economic cooperation and trade development within the region; and
- WHEREAS the Conference recognizes the vital importance of effective and efficient transportation links in furthering economic cooperation and trade development; and
- WHEREAS improvement in the road, rail, marine, and air transportation links between the Eastern provinces and the New England states would contribute to a better and more integrated transportation system, and that transportation services would benefit from better harmonized, simplified and efficient standards and regulations supporting a competitive economy and trade development;
- NOW, THEREFORE, BE IT RESOLVED THAT the Conference of New England Governors and Eastern Canadian Premiers fully recognize multimodal transportation systems, transportation corridors and links, as strategic issues to be addressed in the mandate and work plan of the Trade and Globalization Committee and encourage road, rail, marine and air operators to assist the Committee towards strengthening transportation services and infrastructure.
Bankruptcy reform: limit Chapter 7; protect states' role.
Shaheen adopted the National Governors Association policy:
The Governors are particularly concerned that bankruptcy reform legislation address the following issues:
Source: NGA Economic Development Policy EDC-21: Bankruptcy Reform 01-NGA2 on Feb 15, 2001
- Prevent Chapter 7 Use by Those with the Ability to Pay: Present bankruptcy law does not prevent use of Chapter 7 by those with ability to repay, nor does it require that debtors use Chapter 13, which would require them to repay creditors what the debtor can afford. The Governors strongly support federal efforts to prevent debtors from using Chapter 7 when they are financially able to pay some or all of their unsecured debts.
- Encourage Payment of Domestic Support Obligations: Bankruptcy interferes significantly with states’ ability to assist citizens owed domestic support and to collect unpaid domestic support owed them. The Governors strongly encourage Congress to ensure that any federal bankruptcy reform requires that domestic support obligations have the highest possible repayment priority, that all domestic support obligations be nondischargeable,
and that commencement of bankruptcy not prevent the continued collection of child and other support obligations.
- Give State Claims Parity with Federal Claims in Bankruptcy: Today, bankruptcy rightly gives certain preferences in payment to federal claims against the bankruptcy estate, but similar treatment is not always accorded state claims. The Governors strongly support congressional efforts to reform the treatment of state claims in bankruptcy to provide parity of treatment with federal claims.
- Protect the State Role: The Governors oppose efforts to preempt state authority to determine exemptions under state bankruptcy law. Currently, debtors have a right to choose between federal and state exemptions. The Governors support efforts to shape bankruptcy reform policy that protects the rights of states to determine their own standards instead of having uniform federal regulations imposed without regard for individual state needs.
Uphold commitments to states before other spending.
Shaheen adopted the National Governors Association position paper:
The Issue The major budget issue will be over the surplus and how big of a surplus there will be. How much will be dedicated to paying down the national debt, how much to tax cuts, how much to increase defense spending, what to do about key discretionary spending programs, and whether and how to change key entitlement programs, such as Medicaid, Medicare, and Social Security? How these decisions are made could have significant impacts on the federal-state partnership, especially as they affect vital health and human services programs. What will happen to funding for priority state domestic discretionary programs for the federal fiscal year? When will Congress act?
NGA’s Position Before considering new spending initiatives or tax cuts, the federal government must first uphold its current commitments to the states.
Source: National Governors Association "Issues / Positions" 01-NGA8 on Sep 14, 2001
More enforcement of mortgage fraud and TARP fraud.
Shaheen signed Fight Fraud Act
An Act to improve enforcement of mortgage fraud, securities and commodities fraud, financial institution fraud, and other frauds related to Federal assistance and relief programs, and for the recovery of funds lost to these fraud.
Source: S.386&HR1748 2009-S386 on May 4, 2009
- Amends the federal criminal code to include within the definition of "financial institution" a mortgage lending business or any entity that makes a federally related mortgage loan.
- Extends the prohibition against making false statements in a mortgage application to employees and agents of a mortgage lending business.
- Applies the prohibition against defrauding the federal government to fraudulent activities involving the Troubled Assets Relief Program (TARP) or a federal economic stimulus, recovery, or rescue plan.
Expands securities fraud provisions to cover fraud involving options and futures in commodities.
- Authorizes appropriations to the Attorney General, the Postal Service, and HUD, for investigations, prosecutions, and civil proceedings involving federal assistance programs and financial institutions.
- Amends the Omnibus Crime Control and Safe Streets Act of 1968 to define "covered criminal activity" as including a criminal conspiracy including economic crime, financial fraud, and mortgage fraud.
Page last updated: Nov 23, 2011