Representatives of 2.3 Million Pennsylvanians Give Support to LaRouche's Homeowners and Bank Protection Act

The following resolution was adopted December 11 by the City Council of Harrisburg, the state capital of the Commonwealth of Pennsylvania. Harrisburg is the 13th Pennsylvania municipality urging Congress to enact the Homeowners and Bank Protection Act, and supporting Rep. Harold James House Resolution 418; while Council members from five other cities or boroughs have issued letters or messages of support. The Harrisburg resolution was introduced by Councilmember Gloria Martin-Roberts, who submitted a letter of support to the November 29 Hearing on HR 418; and was seconded by Councilmember Linda Thompson, who testified for HR 418 at the Hearing. The Harrisburg vote means that elected officials representing over 2.3 million Pennsylvanians have come out in support of the HBPA and HR 418.

A Resolution urging the Pennsylvania General Assembly to pass House Resolution 418, calling upon Congress to enact a Homeowners and Banks Protection Act in an effort to protect homeowners and financial institutions.

WHEREAS, according to Governor Edward G. Rendell there are currently 200,000 subprime mortgages in Pennsylvania, including 75,000 Adjustable Rate Mortgages (ARMs), of which 30,000 are already delinquent; and

WHEREAS, it is projected that there could possibly be at least 60,000 mortgages delinquent in those two categories alone sometime next year; and

WHEREAS, the looming financial crisis threatens the integrity of both Federal and State chartered banks, exemplified by the run on deposits of Countrywide Financial Corporation in California on August 16 2007; and

WHEREAS, this financial crisis could potentially wipe out the life savings of many American families and drastically undermine the economic stability of our states and cities; and

WHEREAS, the magnitude of the crisis will overwhelm any case-by-case approach, only efforts similar to those taken by Franklin Roosevelt to protect homeowners and banks in 1933, including a moratorium on home foreclosures as called for in HR 418, have a chance at averting this crisis; and

WHEREAS, on October 2, 2007 House Bill No. 418 was introduced in the Pennsylvania General Assembly, urging Congress to take emergency action to protect homeowners and banks and enact a Homeowners and Banks Protection Act. A true and correct copy of HR 418 is attached hereto, incorporating therein as if fully set forth and marked Exhibit A; and

WHEREAS, HB No. 418 calls upon Congress to enact a Homeowners and Banks Protection Act will:

(1) Establish a Federal Agency to place Federal and State chartered banks under protection, freezing all existing home mortgages for a period of time, adjusting mortgage values to fair prices, restructuring existing mortgages at appropriate interest rates and writing off speculative debt obligations of mortgage-backed securities, financial derivatives and other forms of financial pyramid schemes that have brought the banking system to the point of bankruptcy.

(2) Declare a moratorium on all home foreclosures for the duration of the transitional period, allowing families to retain their homes. Monthly payments, the equivalent rental payments, shall be made to designated banks, which can use the funds as collateral for normal lending practices, thus recapitalizing the banking system. These affordable monthly payments will be factored into new mortgages, reflecting the orderly deflating of the housing bubble, the establishment of appropriate property valuations and reduced fixed mortgage interest rates. While this may take several years to achieve, in the interim period no homeowners shall be evicted from his or her property, and the Federal and State chartered banks shall be protected so that they can resume their traditional functions, serving local communities and facilitating credit for investment into productive entities.

(3) Authorize governors of several states to assume responsibilities for implementing the program, including the rental assessments to designated banks, with guarantees to assure the successful transition.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF HARRISBURG THAT the Council of the City of Harrisburg strongly urges the Pennsylvania General Assembly to pass House Bill 418.

NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF HARRISBURG THAT a copy of this resolution is to be transmitted to Senator Jeffery Piccola and Representative Ronald Braxton as well as all Representatives introducing House Bill No. 418 and the Chair of the Intergovernmental Affairs Committee.

Yeas 6, Nays 1, Passed the City Council December 11, 2007.