Noriega outlines economic plan, criticizes Cornyn for lack of leadership

State Rep. Rick Noriega expressed his concerns about the proposed bailout plan shortly before the House of Representatives rejected the measure Monday afternoon. Noriega called the legislation "a shot in the arm," but said systemic changes were needed that would address the root causes of the crisis.

Noriega criticized U.S. Sen. John Cornyn (R-San Antonio) for being silent on the issue, though he offered only a general outline on his own views and stopped short of saying how he would vote on the House bill.

Texans are angry because "no one is bailing them out," Noriega told reporters on a conference call.  The Houston Democrat said homeowners should be the "focal point" of any aid package, which should include bankruptcy protection.

He said "real regulation" was needed to ensure that Wall Street lobbyists don't try to return to business as usual if the government steps in to help out the failing markets. Noriega emphasized his support for caps on executive pay. He also emphatically called for those responsible for the crisis to be criminally prosecuted.

The Senate challenger described Cornyn as being "quiet as a church mouse" during the whole financial crisis. Cornyn has been absent, Noriega claims, because he has taken $4 million in contributions from "companies that brought us this mess." He said Cornyn has a history of inaction.

"Why should we believe anything John Cornyn says? This is the same guy who allowed Enron to cook its books and then shield them from the public eye," he said.

Noriega dodged a question about how he would have voted on the House bill, saying that was a "hypothetical" matter. He finally acknowledged the bill was "nowhere near where I want it to be."

He expressed wariness about giving the Secretary of the Treasury too much discretion over the plan, and said Congress needed to exercise more authority. Layers of accountability, he said, were "critical" for any bill's success. He compared Congress's current mindset to taking care of the "water in the house," while it needs to "fix the leak in the roof."

Noriega was quick to criticize Cornyn for not taking action, but he also recognized the "unprecedented" nature of the current situation. When asked how he had been prepared to deal with the financial crisis, Noriega pointed to "working in a bi-partisan manner" in the Texas House and cited his work on the Appropriations Committee.