Senator Jim Webb’s Take on Foreclosure Crisis in Letter

Response from the Senator Jim webb (VIRGINIA) to my message to him through e-mail;
Senator Jim Webb’s Response to Your Message.
date Wed, Mar 2, 2011 at 4:12 PM
subject Senator Jim Webb’s Response to Your Message.
hide details 4:12 PM (1 hour ago)

March 2, 2011

Dear Mr. Raja:

Thank you for contacting my office regarding accountability for financial institutions and consumer protection. I appreciate your taking the time to share your views with me.

The reckless practices on Wall Street that led to the financial collapse of September 2008 were the product of greed and the failed oversight system in the government. These failures cost millions of American workers their jobs and risked the United States’ economic position in the world. On July 15, 2010, I supported the conference report to the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203) because I believe we must act to prevent another financial crisis and future bailouts. Americans need a reformed financial system that restores an appropriate degree of regulation and control over Wall Street and our banking system.
The financial reform legislation establishes a strong, independent consumer protection agency that will have the ability to conduct meaningful oversight and put consumers first, while exempting smaller banks and other businesses from potentially onerous regulation. The new bureau will establish a basic, minimum federal level playing field for all banks and, for the first time, non-depository financial companies that sell consumer financial products and services to American families.
Regarding executive compensation and corporate governance, I am committed to promoting economic fairness and increasing corporate accountability. The Dodd-Frank Wall Street Reform and Consumer Protection Act includes multiple provisions to help ensure that executive compensation is held to a reasonable level. For example, this legislation requires all applicable financial institutions (including depository institutions, broker-dealers, credit unions, investment advisors, Fannie Mae and Freddie Mac) with more than $1 billion in assets to prohibit incentive-based pay for executives, employees, directors, or principal shareholders deemed to be excessive, or that could lead to material financial loss for the financial institution.
To further address the issue of executive compensation and fundamental fairness, I introduced my Taxpayer Fairness Act as an amendment to Senate financial reform bill. My amendment would have given American taxpayers an upside in the recovery of our economic system, which became possible only because their tax dollars saved it. The amendment would have put a one-time windfall tax on bonuses paid in 2010 to executives of the thirteen financial institutions that received $5 billion or more of taxpayer support under TARP or the Housing and Economic Recovery Act of 2008 (Fannie Mae and Freddie Mac). This one-time, 50 percent excise tax on bonuses above $400,000 would raise, at a minimum, an estimated $3.5 billion. Nothing is more fair or appropriate than to make American taxpayers whole after they infused our financial system with capital necessary for its recovery. Unfortunately, the amendment did not come to a vote.
The Dodd-Frank Wall Street Reform and Consumer Protection Act also authorizes the Securities and Exchange Commission (SEC) to promulgate rules allowing shareholders in large public corporations to have more of a voice when it comes to the corporation’s governance. Under this legislation, at least once every three years, public company shareholders will be able to cast a non-binding vote to approve executive compensation for qualifying financial institutions. Additionally, the bill authorizes the SEC to create rules allowing shareholders to nominate candidates for the public companies’ board through the company’s proxy materials. This is done through a process called proxy access.
It is without question that additional efforts will be required going forward to ensure our financial system facilitates the growth of our economy without posing a risk to Main Street. In addition to close Congressional oversight of regulators, I am committed to ensuring that Congress addresses reform of Fannie Mae and Freddie Mac. I look forward to a full debate on the proper role of these institutions and working on a bill to address the risks they pose.
In the early days of our republic, President Andrew Jackson established an important principle of American-style democracy: that we should measure the health of our society not at its apex, but at its base. That focus has been lost, as many on Wall Street have accumulated vast wealth while the middle class falls steadily behind. When regions of Virginia are experiencing more than 21% unemployment and so many working Americans continue to struggle in this economy, it is only just that our leaders protect the interests of America’s working people.

As the Senate continues to address financial and consumer protection issues, please be assured that I will keep your specific views in mind. I hope you will continue to share your thoughts with me and my staff in the years ahead.

I also invite you to visit my website at for regular updates on issues that are important to Virginia and our nation.

Thank you once again for contacting my office.


Jim Webb
United States Senator

10 Responses

  1. Hello Karen Pooley, Did you mean $250,000.00 per foreclosure. The mortgages were guaranteed 30 times face value. Insurance paid for $100k foreclosure = $3 million dollars. If they would just send me a check for $125k I’ll pay off my mortgage and they can keep the rest. Until we kick the International Banking System (Federal Reserve) out of the U.S. this will NEVER stop. The U.S. needs to buy out the Charter with the Federal Reserve and go back to gold backed U. S. Treasury Dollars, and get rid of these worthless Federal Reserve Notes. Andrew Jackson referred to the International Bankers as a ‘den of thieves’ and that ‘they will destroy our nation’, he was right.

  2. This guy is not running for reelection. Let us see if he has the guts to do something about it and not just serve lip service to us who are desperate.

  3. If the evil doers along with their protectors would get a nickel for every ounce of crap that comes out of their mouths, they would raise enough money to pay back all Americans for all the damages caused, and enough to pay back all those trillions of dollars they’ve stolen from us AGAIN, and there would still be enough to cover our national deficit. These folks crap from two orifices in their bodies.

  4. All of you are very correct, but once we all know and see that the source of our problems is coming from the Government itself, where do we take the next step (waiting for re-elections not an option) in the direction of solving these problems?

    That’s our only REAL problem, ‘consent of the governed’ is and means a choice which we have the right and duty to change for the sake of our liberty, stability and tranquility by any means necessary.

  5. Leaving it to the foxes to guard the hen house mentality got us to this point. Wisconsin is giving us a glimpse of the level of effort required to shed light on the dark infrastructure of US/Global political, banking structure.

    The answer: Pray to God and Trust Him for the Victory of these principalities of wickedness!

  6. You know as far fetched as this sounds, they did the same thing back in 1933 and as far as I can tell history is repeating itself once again.It’s time to fight back but by thier rules not ours.We tried to prove we were willing to do the right thing or atleast try and they shot us down.Turn about is fair play.It’s time to drag out the TOYS.

  7. That senator is really stupid. They have no intent on fixing the problem. Joyce, India & Karen – you said it well.

  8. Forget the senators and their continued effort to passify each and every homeowner – These bills may be great for future – but we are talking about now. And since he had nothing to offer, he should be one on the list for – special consideration for non performance by senators.

    This is a pathetic response to the homeownr’s inquiry. I am not so sure that he is even running in the next election –

    These senators must think the people are complete fools to continue to send out this kind of response to the state’s people.

  9. Where, in this ‘word salad’ does it mention: foreclosure, document fraud, forced sale, etc.? This is standard Legislative Aid boilerplate providing a capsule over-view of the Senator’s “efforts” to curtail high bonuses, executive compensation, shareholder protections, yadda, yadda. What a bloviating bag of crap.

  10. Blah, fucking, blah, blah blah.

    The bankers bought off the Washington State Legislature for $250 per foreclosure. The deal is, the bankers pay the state the money, they get to continue to steal the homes.

    Easy as that.

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