Jordan Opening Statement: Bank of America/Merrill Lynch Hearing

Bank of America and Merrill Lynch: How did a Private Deal Turn Into a Federal Bailout? Part III


Thank you Mr. Chairman. I'd like to thank you and Chairman Kucinich for working with Ranking Member Issa and myself on these series of hearings on the role of the federal government in the Bank of America – Merrill Lynch merger. I would also like to thank Secretary Paulson for coming before the committee today and I look forward to his testimony.

The fall of 2008 was a watershed time for our economy. Our economic challenges were felt the most by the millions of Americans who lost jobs, saw savings shrink, and felt their credit tighten. Unfortunately, the approach taken by the Federal government is dangerous and I believe many Americans would agree has not helped. Federal bailouts and federal stimulus packages are transforming our free market economy into a political economy. The federal government now selects the winners and losers. The current issue before the committee is merely a symptom of the ever-increasing reach of the federal government into the everyday affairs of American businesses and American families.

Should anyone be surprised by the way that the Federal government has administered the bailout program? With a trillion dollars at their disposal, and little guidance and oversight, we have seen Treasury and the Federal Reserve behave in a way that can only be described as unprecedented. The evidence is clear; the federal government has used threats, intimidation, and deception to impose growing command and control over our economy. With the increasing nationalization of everything from banks to car companies, runaway federal spending and deficits, higher taxes, government takeovers of energy and potentially health care—all while the economy is deteriorating even further and more American jobs are being lost—the American people are saying enough is enough. The American people want answers.

I look forward to hearing from Mr. Paulson about his role in these dealings. I yield back.