TX CD 19: Doherty Highlights McCaul’s Catering To Wall Street Special Interests

Larry Joe Doherty (D-Brenham), today highlighted the fact that incumbent Republican Congressman Mike McCaul (R-Austin) is catering to Wall Street special interests and shifting the burden to Texas’ working families.

“McCaul’s failed leadership in Washington has helped lead our nation into this current financial crisis that will have a long-term effect on our economy and our society,” said Doherty. “We must have a common-sense solution to this crisis that will not force Main Street to help bailout Wall Street.”

Doherty noted that McCaul has a long record showing him to be out of touch with the economic struggles of working families, and in the pocket of investment bankers and the mortgage industry. From the campaign’s press release:

In fact, over his career, the finance and insurance sectors have provided McCaul with more than $516,000 in campaign contributions (www.opensecrets.org). Just this cycle alone he has received close to $176,000 from the group. While accepting these contributions, McCaul has continuously voted against regulation and accountability over those very corporations.

“McCaul has a deep history of his campaign contributions being tied to his votes in Congress, and this is just one more example of how he is trying to pull the wool over our eyes,” said Doherty. “Our elected representatives should be held accountable for their actions which are having a direct impact on the security of working families’ life savings and retirements.”

The proposed $700 billion bailout would cost every American, including children, $2,333. Doherty believes we need a comprehensive, nonpartisan plan that will strengthen our markets while providing real governmental oversight of financial institutions.

“This is not about personalities, this is about fundamental differences about what is right,” said Doherty. “Working families are demanding leadership that is independent from Wall Street ties.”

McCaul’s record in Congress shows he has consistently voted to protect the pocketbooks of the investment banking and mortgage industries:

McCaul Opposed Comprehensive Mortgage Reform Legislation

Earlier this year, McCaul voted against legislation that combined several major pieces of housing-related legislation into one package that was aimed at slowing the pace of foreclosures and stimulating the real estate market. The package provided an overhaul of mortgage finance companies Fannie Mae and Freddie Mac, loan programs aimed at helping borrowers get out from under mortgages they can’t afford. It also would overhaul the Federal Housing Administration and expand its loan guarantee program. The motion to concur with the Senate amendment passed 266-154. [HR 3221, Vote #301, 5/08/08]

McCaul Voted Against Overhaul of our Mortgage System

In 2007, McCaul voted against a bill that would create a nationwide mortgage licensing system and registry.  The bill would also establish minimum standards for home loans and expand certain limits on high-cost mortgages.  It would also prohibit brokers from steering consumers to mortgages they are unlikely to be able to repay.  Opponents of the bill included the mortgage banking industry and the White House, who were concerned that tightening mortgage regulations could make it harder for potential homebuyers to get loans. The bill passed 291-127.  [HR 3915, Vote # 1118, 11/15/07]

McCaul Was Against the ‘Say on Pay’ Measure to End Golden Parachutes

In 2007, McCaul voted against legislation to allow shareholders of public companies to vote on a company’s executive compensation plans. The bill would require publicly traded corporations to allow shareholders to cast non-binding votes beginning in 2009 on compensation packages for top executives. It would require companies to disclose executive severance pay plans in the case of any acquisition, merger, consolidation, proposed sale or other disposition of substantially all of a company’s assets. The bill passed 269-134. [HR 1527, Vote #244, 4/20/2007]

McCaul Supported Legislation to Weaken Consumers’ Rights

In 2005, McCaul voted in favor of legislation intended to make it harder for consumers to wipe out debt through bankruptcy. Its passage by Congress, marking the most significant changes to bankruptcy law since 1978, was a victory for executives in the credit card, retail and auto financing industries who had pushed it for nearly a decade. While bankruptcy filings increased 17 percent in the previous eight years, credit card profits increased more than 160 percent, from $11 billion to more than $30 billion.

The bill passed 302-126. [S 256, Vote #108, 4/14/2005]

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