As one of his constituents, here is a legislative update I just received from Del. Bob Marshall.
Monday, February 2; vote on Roads at no cost to taxpayers
Virginia can get “free” road money under HB 1642 (Del. Bob Marshall) which allows Virginia to name a highway, bridge, or interchange for a living person, group, or business if the cost of construction is paid by the person, group, or business as is done for buildings on a college campus and professional sports stadiums and arenas. HB 1642 is at http://leg1.state.va.us/cgi-bin/legp504.exe?091+ful+HB1642.
The bill is before the House Transportation Appropriations Subcommittee Monday, February 2. Please urge these members to support HB 1642.
Del. Joe May (Loudoun) 804-698-1033 DelJMay@house.virginia.gov Del. Beverly Sherwood (Winchester) 804-698-1029 DelBSherwood@house.virginia.gov Del. John O’Bannon (Henrico) 804-698-1073 DelJOBannon@house.virginia.gov Del. Scott Lingamfelter (Prince William) 804-698-1031 DelSLingamfelter@house.virginia.gov
Del. Jim Scott (Fairfax) 804-698-1053 DelJScott@house.virginia.gov Del. Algie Howell (Norfolk) 804-698-1090 DelAHowell@house.virginia.gov Del. Dan Bowling (Richlands) 804-698-1003 DelDBowling@house.virginia.gov
Tuesday, February 3: vote on Credit Crisis & Financial Risk bill A major reason for the nationwide economic crisis has been the use of Credit Default Swaps [CDS] by large banks, businesses and investment funds to cover shortfalls in mortgage and bond payments. CDS’s are a form of unregulated financial insurance in which no reserves, no public disclosure and no government regulations of any kind are required to back up insurance policies on multi-billion dollar investments.
HB 2320 (Bob Marshall) requires that any Virginia business which provides financial guarantee insurance against losses on bonds, insurance policies, or mortgages must be regulated by the VA Bureau of Insurance. HB 2320 is based upon New York’s financial guaranty insurance article as outlined in a September 2008 circular released by the New York Insurance Department.
HB 2320 requires that financial guarantee insurers must disclose all risks, hold capital and sufficient reserves against insured risks, be subject to underwriting restrictions that ensure diverse investments, and prohibit acceleration events, downgrade triggers or collateral calls which led to the downfalls of Bear Stearns, Lehman Brothers, AIG, Countrywide Mortgages, etc..
HB 2320 is before the House Labor and Commerce Committee which will hear a report of a subcommittee which failed to report HB 2320. HB 2320 can be found at http://leg1.state.va.us/cgi-bin/legp504.exe?091+ful+HB2320. HB 2320 was rejected in subcommittee, in part, because members are hoping Congress will act. If Congress does not act, Virginians (including our state and local governments) who purchase a CDS for their investments are at high risk of financial loss, Waiting for Congress to act when it has gone in the opposite direction for more than 30 years is, in fact, another gamble.
Congress authorized this legal form of high finance gambling in December, 2000 in a little read 11,500 page Appropriations bill for the US Departments of Labor and Health and Human Services!
Former Federal Reserve Chair Alan Greenspan who pushed CDR’s now acknowledges the problems.
America’s financial system is a risk with CDS because there is no overall management of risk, there are NO standards for the financial solvency of seller and buyer, no rules on how many additional parties the original CDS can be assigned to or sold to. Buyers cannot know how much risk the seller has or how much he has in capital or liquid assets.
Members of the House Labor and Commerce Committee are listed below. Please urge them to support HB 2320.
Del. Lee Ware (Powhatan) 804-698-1065; DelLWare@house.virginia.gov Del. Frank Hargrove (Hanover) 804-698-1055; DelFHargrove@house.virginia.gov Del. Chris Saxman (Staunton) 804-698-1020; DelCSaxman@house.virginia.gov Del. Sam Nixon (Richmond) 804-698-1027; DelSNixon@house.virginia.gov Del. Harvey Morgan (Glouster) 804-698-1098; DelHMorgan@house.virginia.gov Del. Bill Janis (Glen Allen) 804 698-1056; DelBJanis@house.virginia.gov Del. Kenny Melvin (Portsmouth) 804-698-1080; DelKMelvin@house.virginia.gov Del. Mark Sickles; (Fairfax) 804-698-1043; DelMSickles@house.virginia.gov Del. Jeion Ward (Hampton) 804-698-1092; DelJWard@house.virginia.gov Del. Johnny Joannou (Portsmouth) 804-698-1079; Del. Terry Kilgore (Gate City) 804-698-1001; DelTKilgore@house.virginia.gov Del. Bob Purkey VA Beach (804) 698-1082 DelBPurkey@house.virginia.gov Del. Kathy Byron Lynchburg (804) 698-1022 DelKByron@house.virginia.gov Del. Tim Hugo (Fairfax) (804) 698-1040 DelTHugo@house.virginia.gov Del. Tom Rust (Fairfax) (804) 698-1086 DelTRust@house.virginia.gov Del. Daniel Marshall (Danville) (804) 698-1014 DelDMarshall@house.virginia.gov Del. Ben Cline (Amherst) (804) 698-1024 DelBCline@house.virginia.gov Del. Ken Plum (Fairfax) (804) 698-1036 DelKPlum@house.virginia.gov Del. Joe Johnson (Abingdon) (804) 698-1004 DelJJohnson@house.virginia.gov Del. Ken Alexander (Norfolk) (804) 698-1089 DelKAlexander@house.virginia.gov Del. Jennifer McClellan (Richmond) 804-698-1071 DelJMcClellan@house.virginia.gov Del. Lynwood Lewis, Jr. (Accomac) 804-698-1000 DelLLewis@house.virginia.gov
Marshall’s effectiveness as a legislator depends on us. If you want Marshall to succeed, then please contact your legislators. Good government depends on good citizens. Without our support, good government does not happen.
The Cartoons
Cartoon from here.
Cartoon from here.
