Sununu Opposed Wall Street Oversight

For Immediate Release
September 17, 2008

Sununu used his position on the Banking committee to fight oversight and accountability, leading to Wall Street crash

(Manchester, NH) - John Sununu hosted a conference call yesterday to brag about his 12 year record in Washington even while Wall Street crumbled and insurance giant AIG went nearly bankrupt. But the truth is that John Sununu has supported George Bush's economic agenda and opposed any meaningful Wall Street oversight or accountability. Sununu even wanted to model his career after former Senator Phil Gramm and supported Gramm's signature proposal, the Financial Modernization Act of 1999, which is largely responsible for the current Wall Street crisis. 

"While John Sununu was busy patting himself on the back yesterday, Wall Street was blowing up in his face," said Alex Reese, press secretary for the NHDP's Coordinated Campaign. "Sununu has helped push the Bush economic agenda through Congress, and he helped lay the groundwork for our current financial crisis. Now he's bragging about his record and flinging political insults instead of pushing for meaningful reform. We need a new direction that demands accountability from Wall Street and enforces oversight, but a new direciton takes a new senator."

John Sununu: Fighting Wall Street Oversight and Accountability

John Sununu modeled his career on former Senator Phil Gramm and voted in favor of Gramm's signature proposal, the Financial Modernization Act of 1999 (FMA), which opened the door to the reckless Wall Street gambling that led to this crisis. The FMA eroded government oversight of Wall Street, and John Sununu even wanted to extend this reckless approach to the insurance market. 

• Financial Modernization Act Paved the Way for Wall Street Crash. Today, the Washington Post reported that by eroding government oversight of Wall Street, the FMA "helped pave the way for companies such as AIG and Lehman Brothers to become behemoths laden with bad loans and investments." [WaPo, 9/17/08]
• Sununu Voted in Favor of the FMA. John Sununu has fought government oversight of Wall Street for 12 years in Washington, including voting in favor of the FMA. [House Vote #276, 7/1/99]
• Sununu Proposed Expanding the FMA to Insurance Market. In fact, Sununu wanted to go even further than Phil Gramm and expand the FMA to the insurance market. Just last year, Sununu proposed the "National Insurance Act," which would have eroded government oversight of the insurance industry just as the FMA eroded oversight of Wall Street.
• Sununu Sought to Model His Career After Phil Gramm. In 2002, Sununu named Phil Gramm as the Senator he admired most. "Asked whom he most admires in Washington politics, Sununu names Phil Gramm." [National Journal, 2/2/02]