Chet Edwards For Congress -

Editorial: Credit card rights only fair

Kat — Sat, 27 Sep 2008 00:12:09 -0700

Editorial: Credit card rights only fair: House legislation rates attention for focus on Main Street

Waco Tribune-Herald | September 27, 2008 | Editorial

If you can stand one more bit of irony in a desperate week of financial panic on Wall Street and political grandstanding in Washington, consider this: The U.S. House of Representatives passed its so-called "Credit Cardholders' Bill of Rights" to protect families from unfair rate hikes, penalties and overcharges.

Another irony: While the White House agonizes over resistance to its bailout of Wall Street financial giants guilty of the worst excesses, the president is threatening to veto this bill benefiting everyday folks on Main Street.

Go figure.

Crafted by Congresswoman Carolyn Maloney, a New York Democrat, and passed with bipartisan strength, 312 to 112, the bill helps Americans who, for better or worse, increasingly rely on credit cards.

Among other things, the bill:

Requires credit card companies give 45 days notice of interest rate hikes so consumers can pay off balances and shop for better deals.
Quashes penalties on cardholders who pay on time. No more charging interest on already repaid debt.
Mandates that credit card bills be mailed out at least 25 days before the due date, up from 14.

Considering Federal Reserve figures showing Americans face about $900 billion in credit card debt, consumers can use any help they can get. The House bill gives them a fair chance.

"It's up to individuals and families to exercise personal responsibility and to not get overextended on their credit cards, but credit card companies should not be able to treat consumers unfairly," said U.S. Rep. Chet Edwards, the Waco Democrat who voted for the bill.

Edwards tells us the bill has been sent to the Senate, where he fears it may languish, especially with all the confusion and intrigue of late.

Some propose this bill — strongly opposed by the banking industry — be attached to whatever massive Wall Street bailout package is ultimately produced.

We're ordinarily against attaching unrelated riders to important bills, but this is anything but unrelated. It would give people on Main Street a fighting chance, just as some want to extend an overly generous helping hand to Wall Street.

We're ordinarily against attaching unrelated riders to important bills, but this is anything but unrelated.

Wall Street bailout package: Q&A with Chet Edwards

Kat — Sat, 27 Sep 2008 00:04:26 -0700

Taxpayers not only ones venting over Wall Street bailout package: Q&A with Chet Edwards

Waco Tribune-Herald | September 27, 2008 | Interview conducted, condensed and edited by Bill Whitaker | Tribune-Herald staff writer

During a break in negotiations on the Wall Street bailout package, U.S. Rep. Chet Edwards, D-Waco, spoke with the Tribune-Herald about the threat to everyday Americans, the outrage constituents have voiced about bailouts and what he claims are the seeds for the current crisis — sown in part, he says, by former Texas Sen. Phil Gramm, one-time chairman of the Senate Banking Committee who oversaw legislation in 1999 deregulating banking and financial institutions. The deregulation measures had plenty of bipartisan support at the time.

Q President Bush this week said failure by Congress to act on his administration’s $700 billion Wall Street bailout package would bring a “long and painful recession” and cause “financial panic.” Is the president really correct? Do we have much to fear if action isn’t taken?

A Yes, there’s a risk of major economic meltdown, but I don’t believe the administration has effectively presented that case to the American people and the Congress. Our calls from all over the country are coming in 5- or even 10-to-1 against the original plan by Treasury Secretary Henry Paulson. I think this is a deadly serious matter that needs to be dealt with in a nonpartisan manner for the good of the country. But the administration also needs to go back to step one and present more facts to the American people about why it is we have to put at risk $700 billion of taxpayer money.

Q Considering public outrage over the administration proposal and angry phone calls and e-mails to both Republicans and Democrats in Congress, what must Congress see in this bill before it can even have a chance of approval?

A There are three things I have to be convinced of before I would consider voting for this package. I’d have to be convinced we’re on the edge of an economic meltdown in a way that would impact not just Wall Street investors but everyday businesses and families. Second, I would have to be convinced that greedy CEOs on Wall Street who put our country into this situation don’t walk away with “golden parachutes” paid for by the taxes of working Americans. Third, that there’s strong oversight for this program to minimize the potential cost to American taxpayers.

Q Just what kind of oversight is that?

A Well, you know, the Chrysler bailout nearly 30 years ago actually made money for the American taxpayer because it was managed well. Now, this package here could end up costing $700 billion or it could be a break-even proposition based on how well it’s managed. The key question is how the government would determine the fair-market price for the assets it buys, and I haven’t heard a clear answer as to how those prices would be determined. If the government buys these assets at fire-sale prices, holds them for several years, then sells them in a better market, we’re buying low and selling high and might actually make some money for the American taxpayers. But if the government buys these assets at inflated prices and has to sell them at a discount, it could be very expensive for taxpayers.

Q So are you confident this bailout package might actually make money for taxpayers?

A No. I have more unanswered questions than answered ones at this point.

Q Cutting the pay of CEOs of failed financial institutions makes some of us feel better on a gut level, but how important is it in really reshaping Wall Street?

A Well, I think anytime taxpayer dollars are involved, fairness is an important proposition. A few Wall Street executives walking off with hundreds of millions of dollars might not sink our economy, but it would undermine the people’s faith and trust in the process, so I think it’s extremely important that the executives who made bad decisions don’t walk off with “golden parachutes” paid for by taxpayers.

Q I’m confused as to how we got into this mess. Why wasn’t anyone minding the store?

A Well, it gets back to the Gramm-Leach-Bliley bill and all the banking deregulation in 1999. That planted the seeds for all this. It took away common-sense, responsible regulations that had worked to protect our banking system since the days of the Great Depression. When those rules were thrown out the window, we got into this realm of exotic investments and the leveraging of every dollar of investment for $30 to $60 of debt. And all that put us on the pathway to serious economic problems. I’m proud that I was one of only 57 House members to oppose the banking deregulation bill of 1999, so I share the sense of anger of everyday citizens who wonder how we got into this mess.

Q In 1999, that would have been a Republican-controlled Congress and a Democratic White House.

A Yes. What’s tragic about all this is it’s a repeat of a previous mistake. When the savings and loan industry was deregulated, it, too, got into exotic investments it knew little about, and that mistake cost taxpayers hundreds of billions of dollars. Fast forward to 1999 and the same mistake is made all over again. I like the wisdom of (former House Speaker) Sam Rayburn who once said there’s no lesson learned in the second kick of a mule, and we’re facing the second kick of the mule. Americans have a right to be tired of it.

Q Even so, shouldn’t Republicans and Democrats alike have seen this coming before we got to this point?

A Well, I feared that taking the rules that had worked since the 1930s off the system would create these problems. I just couldn’t predict when and exactly how. But that’s why my concerns led me to vote against the bill. Over the last several years, a number of Republicans and Democrats have raised similar concerns about what was going on in the financial markets, but the philosophy of no governmental regulation prevailed. In this case, it could cost the taxpayers hundreds of billions of dollars. I remember in 1999, when the banking deregulation bill passed, House Commerce Chairman John Dingell made a speech and said we would live to regret that day and that it would cost taxpayers a lot of money. How true.

Q What’s been the mood in the halls of power this week? Shock? Anger? Confusion?

A Well, I think there’s a lot of shock and anger that a few weeks ago the Treasury secretary was saying the economy is solid and that we don’t need dramatic action. Then last Thursday night [Sept. 18], it was suddenly a matter of if we don’t pass this $700 billion bailout package within a few hours, the economy might take a nose dive. We’re all feeling frustration.

Q Some of us wonder if Congress will rush this into law just to get home quick in time to campaign for re-election.

A I don’t think this is going to be resolved in a day or possibly two. If we found a responsible solution before the markets open Monday, that would be best, but I think what’s far more important than coming up with a bad program quickly is to do it right. This could take days or a week or two to work out. Everyone understands the seriousness of this issue, so I think very few people would complain about staying in town for however long it takes to get it right.

Q Here at the Tribune-Herald, our letters to the editor from Central Texans have gone from fierce debate over Sarah Palin’s fitness as a vice president to unanimous outrage over the bailout. Just how intense is the outrage you’re hearing?

A We’ve had over 600 contacts from constituents through phone calls and e-mail and right now they’re running 5-to-1 against the original Paulson bill. It’s that kind of outrage that has resulted in significant changes being made to the bill: more accountability, greater protection for taxpayer interests — and not allowing one man to decide how to spend $700 billion in tax money. I hope we’ll continue to get public reaction once we have an idea of what the final package will be.

Q How are we ever going to pay for all this? I mean, we had a $29 billion bailout of Bear Stearns last spring, a bailout of up to $200 billion for mortgage giants Fannie Mae and Freddie Mac, the $85 billion AIG bailout a week and a half ago, a long, costly war on two fronts plus tax cuts for everyone.

A Well, the first thing we have to do is stabilize our economy. Second, we have to be honest with the American people that we can’t afford it all. We can’t fight a war in Iraq and Afghanistan, pay for the defense buildup, have massive bailouts of the American economy and pass unpaid-for tax cuts. Right now, we’re having to borrow money from the Chinese to prop up the American economy, and that’s not healthy in the short run or the long run. I think we have to be honest with the American people and say we just can’t afford it all.

Q Any advice for those of us on Main Street, far removed from the excesses of Wall Street?

A First, don’t let members of Congress be your financial adviser. Second, don’t follow the lead of Wall Street executives who put up one dollar of their own money for every $30 to $60 they borrow. Third, our families and our businesses and our government must live within our means and understand that, ultimately, the bill collector will come calling.

Edwards isn't sold on 'shotgun' $700B plan

Kat — Fri, 26 Sep 2008 00:26:08 -0700

Dem Edwards isn't sold on 'shotgun' $700B plan

By MATTHEW WATKINS | Bryan-College Station Eagle | Eagle Staff Writer | September 26, 2008

U.S. Rep. Chet Edwards expressed frustration with efforts in Washington to fast-track a massive Wall Street bailout through Congress this week and said certain conditions must be met before he votes for the bill.

In a 20-minute phone interview from Washington in which he spoke in an unusually frustrated tone, Edwards said he had not had the opportunity to review the proposed bailout that House and Senate leaders were considering Thursday night. Still, he was skeptical of the measure.

"No member of Congress has seen the details of this supposed agreement, and if the vote were held today, a majority of Democrats and Republicans would reject it," he said.

Edwards is a Democrat who represents the 17th District of Texas, which includes Brazos, Grimes, Madison and parts of Burleson and Robertson counties. He said the proposal pushed by Treasury Secretary Henry Paulson was unacceptable and that he wanted to see three key points in the compromise before he would consider voting for it.

"It would have to prevent a national economic collapse, which would devastate the job market and drive down home values and the life savings of everyday citizens," he said. "Second, the Wall Street executives who caused this problem through their greed will not be given golden parachutes at taxpayers' expense. Thirdly, there would have to be strict oversight to minimize the cost to taxpayers."

Edwards said his office had received more than 600 calls in the past few days from constituents concerned about the bailout. He estimated that people opposing it had outnumbered those in favor of it 5 to 1.

He said he would not automatically reject the bill but wanted to make sure it was absolutely necessary to spend $700 billion.

"I don't think that the administration has effectively made the case with specific data and facts as to whether we are on the edge of an economic collapse," he said. "We may be, in fact, at that point, but I don't think they have offered the specific data to put at risk $700 billion of taxpayer money."

Edwards said other alternatives should be examined.

"Part of the frustration of this process is that it has been presented as a shotgun marriage with little consideration for alternatives," he said. "I have seen some ideas floating around that a passed credit for people who buy homes would do more to strengthen the homebuilding and real estate market than anything, and that is the root cause of our situation."

That situation, Edwards said, could have been avoided if Congress had not repealed Depression-era legislation that imposed restrictions on banks and other financial institutions.

He was referring to the Gramm-Leach-Bliley Act -- sponsored by retired U.S. Sen. and former Texas A&M Regent Phil Gramm -- that removed barriers keeping banks, securities houses and insurers from growing into large conglomerates that could perform the duties of all three such businesses. Some lawmakers have pointed to the law as one of the causes of the current financial crisis and said that Congress should consider changing the law soon.

"I am one of only 57 House members who voted in 1999 against the banking deregulation bill, which led to this economic crisis," he said. "I share the anger of everyday citizens who wonder just how we got into this mess."

News reports at the time described a small number of dissenters who warned that the bill was opening a door for a future financial crisis. Others opposed the bill because of concerns over consumer privacy and because it did not promote loans to lower-income communities.

Edwards said he opposed the law because of fear that it would cause such a crisis. He said he remembered a former congressman telling him that his proudest vote was against a bill deregulating the savings-and-loan industry that many say led to the S&L crisis of the 1980s.

"[Former Texas Congressman and Speaker of the House] Sam Rayburn once told me that there is no lesson learned in the second kick of a mule," Edwards said. "What we are hurting from right now is the second kick from a mule, and I hope that Congress doesn't have to be kicked three times to learn that common-sense regulation is vital to maintaining a free-enterprise market."

Farm Bureau's PAC endorses Chet Edwards

Kat — Thu, 25 Sep 2008 00:18:31 -0700

Farm Bureau's PAC endorses Chet Edwards

Waco Tribune-Herald | September 25, 2008 | By Ken Sury | Tribune-Herald staff writer

The Texas Farm Bureau Friends of Agriculture Fund Inc. announced today that it has endorsed incumbent U.S. Rep. Chet Edwards (D-Waco) for re-election to his District 17 seat.

Text from the announcement is below.

"Congressman Edwards has had an outstanding record on issues important to agriculture and rural Texas in his 18 years in Congress," said Texas Farm Bureau and AGFUND President Kenneth Dierschke. "He recognizes the importance of farm programs in providing food security to our nation by placing a safety net under agricultural producers, and has provided innovative solutions in protecting both private property rights and the environment."

Congressman Edwards is one of only eight House members to serve as a senior member on both the House Budget and Appropriations Committees. He also serves on the Homeland Security Appropriations Subcommittee, Energy and Water Appropriations Subcommittee, co-chair of the House Army Caucus, and the USO Congressional Caucus.

AGFUND is Texas Farm Bureau's political action fund. It is a legal entity separate from the Texas Farm Bureau and may endorse and contribute financially to political candidates.

Texas to get most of disaster aid in spending bill

Kat — Wed, 24 Sep 2008 00:29:58 -0700

Sept. 16, 2008
Texas to get most of disaster aid in spending bill

AP via the Houston Chronicle | Sept. 24, 2008

Lawmakers to ask Congress for billions to recover

WASHINGTON — Democratic Congressman Chet Edwards says the House will pass a year-end spending bill that will designate most of about $23 billion in disaster recovery aid for Hurricane Ike.

Edwards says the House was to pass the spending bill Wednesday. The money is divided among agencies and programs.

Edwards is the ranking Texan on the House Appropriations Committee.

The sweeping spending bill also increases defense spending and assists automakers. It is intended to keep government running past the October First start of the 2009 budget year.

Record VA appropriations bill up for House vote

Kat — Wed, 24 Sep 2008 00:21:32 -0700

Record VA appropriations bill up for House vote

Waco Tribune-Herald | September 24, 2008 | By Regina Dennis | Tribune-Herald staff writer

The House of Representatives will vote Friday on a $118.9 billion military construction and Veterans Affairs appropriations bill for the 2009 fiscal year before adjourning for this session.

The bill marks $47.6 billion for the Department of Veteran Affairs for improving veterans access to medical services and aid for homeless veterans. The bill also sets aside $25 billion toward improving military housing and quality of life for troops, expanding the Army and Marine Corps, and funding base realignments and closures.

The bill represents a $9 billion increase over the historic veterans affairs bill for the 2008 fiscal year.a

U.S. Rep. Chet Edwards (D-Waco), chairman of the military construction and veteran affairs appropriations subcommittee, said the bill represents Democrats' commitment to supporting soldiers and military operations.

"This bill builds on the historic increases in the fiscal year 2008 bill and sends a clear message to American's troops, veterans and their families that we honor and respect their service and sacrifice," he said in a statement. "With this bill, House Democrats will have done more to increase veterans funding in two years than Republicans did in 12 years. Democrats have kept our promise to American's veterans. This bill is about maintaining a strong national defense, improving military readiness and respecting with word and deeds those veterans who defend us and our freedom."

Offshore drilling bill heads to Senate

Kat — Wed, 17 Sep 2008 10:42:45 -0700

Wednesday, September 17, 2008
Offshore drilling bill heads to Senate

By Regina Dennis | Waco Tribune Herald

An offshore drilling bill is up for a vote in the Senate after it was passed late Tuesday by the House.

The bill, which was approved in the House by a vote of 236 to 189, would expand domestic offshore drilling along the eastern coast of the United States. It also would allow access to 10 percent of the Strategic Petroleum Reserve, an emergency supply of crude oil stored along the coastline of the Gulf of Mexico, releasing 70 million barrels of oil to be sold on the market.

U.S. Rep. Chet Edwards (D-Waco), who serves on the House Energy and Water Appropriations Subcommittee, supported the legislation as a means of lowering energy and fuel costs.

"The fact is that releasing oil from the SPR is a proven way to drive down oil prices quickly," Edwards said in a press release. "By dramatically increasing the supply of oil on the market, we will drive down the price of oil, with is being kept superficially high by oil speculators."

The bill also provides tax breaks to companies in the wind and solar energy industries, and developers of biofuels and new energy efficiency programs.

'Team Texas' fights for funds on Capitol Hill

Kat — Tue, 16 Sep 2008 10:29:15 -0700

Sept. 16, 2008
'Team Texas' fights for funds on Capitol Hill

By STEWART M. POWELL | Houston Chronicle Washington Bureau

Lawmakers to ask Congress for billions to recover

WASHINGTON — Texas' often-fractious congressional delegation, united by hurricane devastation back home, launched a bipartisan drive on Capitol Hill Tuesday to win billions of dollars in emergency assistance by the end of the month.

Citing preliminary estimates, lawmakers said they may ask Congress to send at least $10 billion in federal emergency relief to the Lone Star State, local communities and individual victims of the hurricane. The money would be used for temporary housing, debris removal and eventual reconstruction.

Sen. Kay Bailey Hutchison, R-Texas, flanked by lawmakers from both parties, said she expects to have detailed damage estimates in the next week that can be used as the basis for an emergency budget request.

Sen. John Cornyn, R-Texas, who accompanied President Bush on a three-hour tour of southeast Texas on Tuesday, called damage estimates "an ongoing process," adding: "Nobody really knows at this point. People can't even get back to their homes to make that assessment."

Pelosi on board

The effort on Capitol Hill led by Hutchison and seven House members paralleled an on-the-ground campaign in Texas that gave Cornyn a chance to speak directly with Bush about the need for federal assistance.

"The president seemed to be listening, and I hope he will follow our request," Cornyn said.

Lawmakers said they hoped to attach the request for emergency hurricane assistance to a catch-all funding package expected to be enacted by Congress by Sept. 30. The legislation would continue funding federal government operations into the next fiscal year.

House Speaker Nancy Pelosi, D-Calif., endorsed adoption of an emergency disaster assistance package to help cover the costs of Hurricane Ike in Texas, Hurricane Gustav in Louisiana, western wildfires in California and elsewhere, and flooding and tornadoes in the Midwest.

"Congress will move quickly to pass emergency disaster assistance funds," Pelosi said Monday. "It is unacceptable that the Bush administration and bureaucratic red tape have unnecessarily slowed delivery of these vital funds to the affected regions and individuals."

Pelosi's partisan assessment contrasted to the bipartisan effort undertaken by members of Texas' congressional delegation, who hold key positions on the House and Senate committees than handle appropriations.

In good position

Texas is well-positioned to win emergency assistance. Hutchison serves on the Senate Appropriations Committee and the House Appropriations Committee includes five Texans: John Culberson, R-Houston, Chet Edwards, D-Waco, Ciro Rodriguez, D-San Antonio, Kay Granger, R-Fort Worth, and John Carter, R-Round Rock.

"We call it Team Texas," said Hutchison, a prospective candidate for governor in 2010. "When one of our constituents is in trouble, all of us come together in the appropriate committee assignments to help those in need."

Texas lawmakers to push for federal rebuilding aid

Kat — Sun, 14 Sep 2008 10:49:36 -0700

Sept. 14, 2008
Texas lawmakers to push for federal rebuilding aid

By BENNETT ROTH | Houston Chronicle Washington Bureau

WASHINGTON — Texas lawmakers said Sunday that they intend to press Congress to approve a package of federal aid by the end of this month to defray the enormous cleanup and rebuilding costs in the aftermath of Hurricane Ike.

Members of the Lone Star congressional delegation said they hoped the money could be included in a catch-all funding measure that must be approved to allow the government to operate when the fiscal year ends on Sept. 30.

The White House took one step to alleviate local cleanup costs when it agreed to a request by Republican Texas Sens. Kay Bailey Hutchison and John Cornyn for the federal government to pay the entire cost of debris removal for a period of up to 72 hours.The standard formula is for the federal government to defray 75 percent of that cost.

But debris removal is only a small part of a rebuilding effort in the wake of a storm that, by some estimates, will top $10 billion in damages.

Rep. Gene Green, D-Houston, said that the must-pass spending bill may be the best vehicle for hurricane funding, since lawmakers need to approve it before their scheduled adjournment at the end of this month.

Green said that he and Rep. Kevin Brady, R-The Woodlands, the senior members of their respective parties from the Houston/Southeast Texas region, will likely take the lead in putting together such a package.

Getting a disaster relief plan through Congress in the next few weeks still faces hurdles. In the past, lawmakers have often used such supplemental funding to add on their own pet projects, which has brought veto threats from the White House and opposition from more fiscally conservative members.

Even the continuing resolution could prove unreliable, with some Republicans threatening to oppose it if does not lift a moratorium on offshore drilling. That would put Texas Republicans in the uncomfortable position of voting against legislation that also would provide post-hurricane aid.

Also at this early stage it is not clear exactly how much money will be needed to deal with the aftermath of the hurricane.

"The biggest part of the problem is knowing what to ask for," said Rep. Nick Lampson, D-Stafford, whose district includes areas south of Houston, including the Johnson Space Center.

Lampson said he has been in touch with House Speaker Nancy Pelosi's office and other key lawmakers, such as Rep. Bennie Thompson, D-Miss,. the chairman of the Homeland Security Committee. Pelosi's office issued a statement pledging that the House "stands ready to act on making available the resources that are needed to all those who suffer from the cruel blow of Hurricane Ike."

Pelosi's office has not determined whether the funding will be part of the continuing resolution or a stand-alone emergency funding measure.

The speaker has been well aware of the storm damage since her daughter, Jacqueline Kenneally, lives with her family in the Sugar Land area. The family did not evacuate but was without power.

Rep. Chet Edwards, the senior Democrat from Texas on the Appropriations Committee, pledged to help the Houston delegation obtain funding for the hurricane cleanup. But the Waco lawmaker cautioned, "it could require more than one emergency appropriation because more time might be needed to quantify the total damage caused by Ike."

After Hurricane Rita, the Texas delegation faced an uphill fight securing cleanup money, because the Bush administration was reluctant to spend more money following the huge federal bill for Hurricane Katrina.

But the delegation eventually forced the White House to relent. And Hutchison's spokesman, Matt Mackowiak, suggested that the senator, who sits on the influential Appropriations Committee, will exert the same pressure for funding in the aftermath of Ike.

Rudder High Dedicated with General's Family on Hand

Kat — Sat, 13 Sep 2008 15:18:04 -0700

KWTX TV: Rudder High Dedicated with General's Family on Hand

Reporter: Steve Fullhart | KWTX TV | Sep 5, 2008

The official dedication of Rudder High School was a family affair Friday.

General James Earl Rudder's children and other family members travelled from far and near to mark the opening of Bryan's second high school.

The $51 million facility bears the name of the former Texas A&M president who led his rangers during D-Day in World War II.

"I'm not sure what he'd think, really," said James Earl "Bud" Rudder Jr., the son of the general. "He would be proud because he worked hard, and he meant to do good things, and he would be pleased with being recognized."

Principal Hugh Piatt emphasized Gen. Rudder's ideals on Day 1 for his students, who will be known as the Rangers.

"Having the courage to take risks that no one else has done, and for them, translating that into setting goals and being successful," Piatt said. "It's really powerful, and the kids have bought into it."

Among the speakers at Friday's event was Congressman Chet Edwards, who was an Earl Rudder Award winner during his time at Texas A&M.

Edwards hoped the students would "remember the life story and values of Earl Rudder, his courage, his integrity, his lifetime commitment, not just on D-Day, but a lifetime of commitment to making the world a better place."

Only freshman and sophomores are attending Rudder this year, but in two years, there will be a full campus for four grades. The maximum capacity of the school is 1,600 students.

School has been in session for a couple weeks, but not only did Friday mark the official dedication, but also the opening game for the Rudder Rangers' football team.