Orson Aguilar
Incoming Executive Director
510-926-4004 office

Preeti Vissa
Community Reinvestment
510-926-4022 office

California – The House of Representatives joined the Senate’s vote on Wednesday in affirming the $700 billion dollar bailout of financial institutions. The bailout contains virtually no language that will compel financial institutions to effectively address the foreclosure crisis or to embrace adequate measures to keep people on Main Street in their homes. The bailout also includes a wide range of benefits for big business but nothing for the small business community that will keep our economy going through a recession.

Fourteen African American and Latino Congresspersons, to their credit, opposed the bailout in its present form. In general they argue that far more should be done for Cesar Chavez and Martin Luther King Blvd.

Fortunately, the bailout is only round one. Greenlining and its coalition will take a lead role in advocating for better solutions through the regulatory bodies and at our regularly scheduled meetings with CEOs of major financial institutions. Greenlining will also raise this issue at our upcoming November meeting with Chairman Ben Bernanke of the Federal Reserve. This includes more assistance to homeowners and entrepreneurs.

Once the election results are known, we will begin efforts to prepare a legislative and regulatory agenda that will protect Main St., with particular reference to homeownership and minority-owned small businesses. We will also continue our efforts to secure a temporary moratorium declared on foreclosures that should allow most homeowners to effectively renegotiate the terms of their mortgages.

Our efforts will include efforts to secure a $200 billion dollar sovereign wealth fund that will invest in low/moderate income homeownership dedicated to ending the minority homeownership gap. We will also be working on efforts with the minority business associations to increase the SBA budget for more creative and far reaching efforts designed to stimulate the small business sector.

Greenlining has confirmed meetings on November 17th and 18th in D.C. with Federal Reserve Chairman Bernanke, FDIC Chair Bair and Comptroller Dugan to discuss the homeownership crisis and alternatives but hopes that this issue will be addressed immediately.