Restore the Economic Safety-Net

WHEREAS, the American people have been told for years that the evil days of the Great Depression could not repeat themselves because President Franklin D. Roosevelt had created a safety net by regulating banks, credit, and investments; and

WHEREAS, the recent Bush administration did not regulate banks, credit, investments, non-bank financial institutions, Fannie Mae and Freddie Mac, and avoided regulating new financial instruments such as credit default swaps; and

WHEREAS, this lack of regulation lead to a booming economy that collapsed with numerous failures of financial institutions, a near total credit freeze, de facto nationalization of major financial institutions, the loss of trillions of dollars in investments, bankruptcies and high unemployment, and a world-wide economic crisis

THEREFORE BE IT RESOLVED THAT, the Los Angeles County Democratic Party urge Obama Administration and Congress to re-regulate banking and Wall Street, regulate financial institutions such as AIG that have heretofore never been regulated, completely nationalize Fannie Mae and Freddie Mac, and set standards for financial derivatives such as credit default swaps; and

THEREFORE BE IT FURTHER RESOLVED THAT, this resolution be sent to the California Democratic Congressional delegation and the Secretary of the Treasury.

Author: Craig Athon, 49th AD

Passed by LACDP Resolutions Committee 5/5/09

Passed by LACDP 5/12/09