Febuary 7, 2008 (LPAC)--House Resolution 1153, calling on Congress to enact the LaRouche-authored Homeowners and Bank Protection Act, was introduced into the Georgia House of Representatives on Feb. 5. The resolution has six cosponsors, and has been referred to the Committee on Banks and Banking.

The resolution reads:

- A Resolution -

Urging the Congress the United States to enact a ``Homeowners and Bank Protection Act'' for the protection of homeowners and banking institutions; and for other purposes.

WHEREAS, the growing financial crisis involving home mortgages, debt instruments of all types, and the banking system of the United States threatens to set off an economic collapse with a potentially worse economic impact than was experienced in America during the Great Depression of the 1930s; and

WHEREAS, millions of Americans are currently faced with impending foreclosures and the loss of their homes; and

WHEREAS, hedge funds, which spread this financial collapse among markets world-wide, are now going bankrupt and demanding government bailout of their securities and derivatives, and the nominal value of the derivatives based on mortgages alone is the size of the combined GDP of the nations of the world; and

WHEREAS, under similar circumstances in the 1930s, President Franklin D. Roosevelt successfully intervened to protect banks and homeowners, addressing Congress with a ``declaration of national policy, which stated, ``the interests of the Nation require that special safeguards should be thrown around home ownership as a guarantee of social and economic stability, and that to protect homeowners from inequitable enforced liquidiation in a time of general distress is a proper concern of the government.''

NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OR REPRESENTATIVES that this body hereby urges the members of the United States Congress to take emergency action to protect homeowners and banks and to enact a ``Homeowners and Bank Protection Act,'' which legislation shall:

(1) Establish a fedeal agency for the protection of federal and state chartered banks;

(2) Include specific mortgage protections for a limited time, allowing the economy to regain stability during this transitional period, including freezing all existing home mortgages for a limited 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;

(3) Declare a moratorium on all home foreclosures for the duration of the transitional period, allowing families to retain their homes an to establish monthly payments which shall be the equivalent of rental payments, to be made by such homeowners to designated banks, and allow these funds to be used by such banks as collateral for normal lending practices, thus recapitalizing the banking system; and

(4) Authorized states to assume the administrative responsibilities for implementing the program created by Congress while the federal government shall continue providing any necessary credits or guarantees needed to assure a successful economic transition.

BE IT FURTHER RESOLVED that the Clerk of the House of Representatives is authorized and directed to transmit an appropriate copy of this resolution to the President of the United States and to each member of the Georgia congressional delegation.