Perlmutter Supports Bill to Help Auto Dealers Regain Franchise Agreements

July 16, 2009

Bill Provides Aid to Small Businesses

Today, U.S. Rep. Ed Perlmutter (CO-07), a member of the House Financial Services Committee and the House Rules Committee, led the debate on the House Financial Services Appropriations bill, which includes a provision to assist the nation’s auto dealers whose dealerships were dropped as a result of recent bankruptcy filings by GM and Chrysler. The bill requires automakers receiving government funding to reinstitute the franchise agreements with their local dealers

In remarks on the House Floor, Perlmutter stated:

“If there is one issue people in our districts will support in this bill, it is the reinstatement of auto dealer franchise agreements which were severed with little notice earlier this year. In my own district, hundreds of workers were put in jeopardy when GM and Chrysler terminated these dealerships, even long-time, profitable franchises. At a time when too many Americans are unemployed, adding more workers to the unemployment rolls is the last thing our economy needs.”

Additionally, this appropriations bill provides funding for much needed resources for the federal government to improve our oversight of Wall Street while investing in small businesses on Main Street.

As part of the debate Perlmutter stated:

“This is the first Financial Services Appropriations bill under a President who believes Wall Street actually needs someone watching it.

“Under the Bush Administration the SEC promoted a good-ol-boy atmosphere that disregarded investor and taxpayer interests in favor of Wall Street wealth. They repeatedly turned a blind eye regarding fraud, as they did with warnings about Bernie Madoff, and they knowingly helped build the house of cards that was the sub-prime mortgage bubble.

“Big businesses became “too big to fail”. And the whole thing came tumbling down.

AIG, Bernie Madoff, Lehman Brothers, Bear Stearns, and other financial disasters could have been avoided if our federal agencies were given the resources to connect the dots, look at the books and take preventative measures. This provision sends a clear message to Wall Street…your days of impunity are over!”

Perlmutter also highlighted a 38% increase in funding for the Small Business Administration, which will be able to provide loans to small businesses throughout the 7th Congressional District and the nation.

“During an economic downturn, many individuals who have been laid off open small businesses where they can pursue their entrepreneurial dreams and be their own boss,” stated Perlmutter. “This boost in funding will reinvigorate communities across the nation at the precise time when we need it.”

Other provisions included within the Financial Services Appropriations Bill, HR 3170 are:

* Increased funding for the SEC by 8% over last year.

* Funding for the SEC to hire 140 additional analysts to protect investors and taxpayers by monitoring publicly traded companies for fraud, abuse or waste.

* Increased funding for the Federal Trade Commission to help consumers by investigating and prosecuting illegal credit card practices.

The House will vote later today to pass this measure.

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