/PRNewswire/ -- On Thursday, the House Fair Elections Now Act (H.R. 1826), championed by House Democratic Caucus Chairman John B. Larson (D-Conn.), gained its 134th co-sponsor, pushing the number of supporters to more than half of the Democratic Caucus. This high level of support is a sign of the growing momentum for changing the way campaigns are financed in this country, according to Public Campaign and Common Cause.
"The country needs both parties to work to solve the political crisis created by the Supreme Court's decision in Citizens United, and the bipartisan solution that has the broadest support within Congress is Fair Elections," said Nick Nyhart, president and CEO of Public Campaign. "Not only is it the best policy response to the escalating cost to run for office, it will take candidates off the fundraising treadmill and encourage them to seek support from voters back home. This bill is democracy-in-action."
"The Supreme Court has left no room for doubt that we need a campaign finance system that makes elected officials beholden to the people they're supposed to represent instead of the wealthy special interests," said Common Cause President Bob Edgar. "The Fair Elections Now Act would do that."
In the two weeks since the Citizens United decision was released, the groups have stormed the Hill, working with others to mount a significant campaign to:
-- Organize a letter of 41 top business executives to House Speaker Nancy
Pelosi (D-Calif.) and Senate Majority Leader Harry Reid (D-Nev.)
urging them to include Fair Elections in any legislative package.
-- Deliver 177,716 petition signatures to district and Capitol Hill
offices for both House members and Senators.
-- Place nearly 5,000 calls to targeted congressional offices.
-- Line up more than 200 faith leaders, including prominent individuals
within denominations, to sign a letter to Speaker Pelosi and Majority
Leader Reid to urge that the response to Citizens United include Fair
Elections.
-- Brief more than 100 congressional offices on Fair Elections.
-- Launched a "fax" day today, when thousands of faxes will be sent to
targeted congressional offices.
"Over the past two weeks, we have brought Americans' concerns about the big money-dominated system directly to Congress," said David Donnelly, campaign manager of the joint effort. "From business executives to faith leaders to ordinary Americans, everyone is sick of the time Congress spends courting Wall Street and other special interests. We will continue to direct the voices of concerned and angry Americans to urge our elected officials to act in the people's interest and pass Fair Elections."
The Fair Elections Now Act (H.R. 1826) would create a voluntary system that blends limited public funds with a 4 to 1 match on donations of $100 or less. Candidates would be freed from the eternal chase for big campaign checks, able to spend their time talking with voters and addressing our country's challenges. With Fair Elections, candidates would need to rely solely on their grassroots base of support and not Wall Street lobbyists or PACs. Assistant Majority Leader Dick Durbin (D-Ill.) is the sponsor of companion legislation in the Senate.
The 134 co-sponsors represent a broad, ideologically diverse array of the House, with strong support across caucuses and party lines. Supporters include 66 percent of new members, 62 percent of Democratic women, and half of all Congressional Black Caucus members.
To learn more about the Fair Elections Now Act and view the full list of House co-sponsors, visit http://www.fairelectionsnow.org/.
Common Cause is a nonpartisan, grassroots organization dedicated to restoring the core values of American democracy, reinventing an open, honest, and accountable government that works for the public interest, and empowering ordinary people to make their voices heard.
Public Campaign is a non-profit, non-partisan organization dedicated to sweeping campaign reform that aims to dramatically reduce the role of big special interest money in American politics.
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Showing posts with label finance. Show all posts
Showing posts with label finance. Show all posts
Thursday, February 4, 2010
Thursday, January 7, 2010
Dodd's Retirement Highlights Untenable Campaign Finance Regime
/PRNewswire/ -- Sen. Chris Dodd's (D-Conn.) retirement has led many observers to suggest that overhauling our financial system will be easier, a clear sign that our money-driven political system is broken, according to campaign finance watchdogs Public Campaign and Common Cause.
"As the Senate begins work on the financial system overhaul, a tough reelection battle would have had Sen. Dodd dialing for dollars and attending fundraisers with the same interests he would be working to regulate," said Nick Nyhart, president and CEO of Public Campaign. "That it takes retirement to boost the likelihood of good policy is an indictment of our broken campaign financing system."
"It's a sad commentary that many think that Sen. Dodd's announced retirement will free him to act in the public interest, since he doesn't have to worry about special interest campaign donors," said Bob Edgar, president and CEO of Common Cause. "We need a system that allows members of Congress to act in the public's interest at all times. It's time for Congress to change the way Washington works by passing the Fair Elections Now Act."
The Fair Elections Now Act (S. 752, H.R. 1826) would give candidates for Congress the option to run a competitive race with a blend of small dollar donations and limited public funds. Sen. Dodd, a co-sponsor of the legislation, has long supported the measure. "Whether you're a Washington lobbyist or a Chicago lobbyist, what we ought to have is public financing for congressional and presidential campaigns. That would solve the whole problem," Sen. Dodd told an audience at the YearlyKos convention in 2007.
Sponsored by Sen. Dick Durbin (D-Ill) and Rep. John Larson (D-Conn.), this legislation would put people in office unencumbered by special interest campaign cash. In addition to Rep. Larson, the House bill has the broad bipartisan and cross-caucus support of 124 co-sponsors.
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"As the Senate begins work on the financial system overhaul, a tough reelection battle would have had Sen. Dodd dialing for dollars and attending fundraisers with the same interests he would be working to regulate," said Nick Nyhart, president and CEO of Public Campaign. "That it takes retirement to boost the likelihood of good policy is an indictment of our broken campaign financing system."
"It's a sad commentary that many think that Sen. Dodd's announced retirement will free him to act in the public interest, since he doesn't have to worry about special interest campaign donors," said Bob Edgar, president and CEO of Common Cause. "We need a system that allows members of Congress to act in the public's interest at all times. It's time for Congress to change the way Washington works by passing the Fair Elections Now Act."
The Fair Elections Now Act (S. 752, H.R. 1826) would give candidates for Congress the option to run a competitive race with a blend of small dollar donations and limited public funds. Sen. Dodd, a co-sponsor of the legislation, has long supported the measure. "Whether you're a Washington lobbyist or a Chicago lobbyist, what we ought to have is public financing for congressional and presidential campaigns. That would solve the whole problem," Sen. Dodd told an audience at the YearlyKos convention in 2007.
Sponsored by Sen. Dick Durbin (D-Ill) and Rep. John Larson (D-Conn.), this legislation would put people in office unencumbered by special interest campaign cash. In addition to Rep. Larson, the House bill has the broad bipartisan and cross-caucus support of 124 co-sponsors.
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Thursday, March 5, 2009
RNC: Tax and Spend Fever
/PRNewswire-USNewswire/ -- The following was released today by the Republican National Committee:
Today, President Obama Will Host A Health Care Summit:
Today, President Obama Will Host A Summit On Health Care Issues. "On Thursday, Mr. Obama will host a summit on health-care issues where a variety of stakeholders will come together with members of Congress." (Laura Meckler, "Tough Questions Dog Health-Care Overhaul," The Wall Street Journal, 3/3/09)
EVEN MORE SPENDING? HIGHER TAXES?
President Obama's Health Care Plan Could Cost More Than $1 Trillion:
Estimates Place The Cost Of President Obama's Health Care Plan At Over $1 Trillion Over The Next Decade. "Estimates put the full cost of Mr. Obama's health plan at more than $1 trillion over 10 years." (Laura Meckler, "Tough Questions Dog Health-Care Overhaul," The Wall Street Journal, 3/3/09)
The President Has Been Vague About Funding His Health Care Plan:
President Obama Has Been Vague On How His Health Care Plan Would Be Financed. "Mr. Obama has been vague about how the country's future health-care system should be structured, but he was detailed last week about how to pay for it. He proposed raising $634 billion over 10 years through tax increases on the wealthy and cuts to existing government health-care spending." (Laura Meckler, "Tough Questions Dog Health-Care Overhaul," The Wall Street Journal, 3/3/09)
In The Past, Obama Proposed Funding Health Care Reforms By Repealing The Bush Tax Cuts:
Originally, President Obama Said He Would Finance His Health Care Plans By Rolling Back The Bush Tax Cuts. "On his Presidential Transition website, President Obama said he would 'pay for his $50 - $65 billion health care reform effort by rolling back the Bush tax cuts for Americans earning more than $250,000 per year and retaining the estate tax at its 2009 level.'" (Jake Tapper, "Read His Lips: New Taxes," ABC News' "Political Punch" Blog, www.abcnews.com, 2/26/09)
But Instead, Democrats Have Already Announced Plans For Billions In New Taxes To Fund Health Care:
President Obama Still Plans On Ending The Bush Tax Cuts; But Instead Of Using Them To Fund Health Care, He Proposed A New Tax. "But as we learned yesterday afternoon, though the President is certainly planning on raising taxes on the wealthiest Americans by allowing the Bush tax cuts to expire next year -- making the top rate jump from 35% to 39.6% -- the President plans on partially funding the Health Care Reserve fund by raising another, new tax on those families making $250,000 a year, specifically from reducing the itemized deduction rate for families with incomes over $250,000, limiting it to 28 percent." (Jake Tapper, "Read His Lips: New Taxes," ABC News' "Political Punch" Blog, www.abcnews.com, 2/26/09)
President Obama Proposed A $634 Billion Reserve Fund For Health Care, That Experts Believe Will Cost At Least $1 Trillion. "President Obama is proposing to begin a vast expansion of the U.S. health-care system by creating a $634 billion reserve fund over the next decade, launching an overhaul that most experts project will ultimately cost at least $1 trillion. The 'reserve fund' in the budget proposal being released today is Obama's attempt to demonstrate how the country could extend health insurance to millions more Americans and at the same time begin to control escalating medical bills that threaten the solvency of families, businesses and the government." (Ceci Connolly, "Obama Proposes $634 Billion Fund For Health Care," The Washington Post, 2/26/09)
Democrats Plan To Pay For The Reserve Fund By Capping Tax Deductions, Amounting In A Tax Increase Of More Than $300 Billion. "About half the money for the new fund would come by capping itemized tax deductions for Americans in the top income bracket. The proposal, which administration officials characterize as a 'shared-responsibility issue,' would reduce the value of tax deductions for families earning more than $250,000 by about 20 percent, according to administration documents." (Ceci Connolly, "Obama Proposes $634 Billion Fund For Health Care," The Washington Post, 2/26/09)
Does The Obama Administration Plan On Using An Employer Tax Exclusion To Help Fund Health Care?
There Is Speculation That Democrats Will Propose An Employer Tax Exclusion To Help Fund The Health Care Proposals. "The administration, as John Cohn says, means to leave the rest of the financing question to Congress. But according to both members of Congress and the administration, that ambiguity obscures a specific solution under examination: The employer tax exclusion." (Ezra Klein, "What Obama's Budget Does -- And Doesn't - Say," The American Prospect's "Ezra Klein" Blog, www.prospect.org, 2/22/09)
-- This Is The Same Idea That The Obama Campaign "Brutalized" McCain For
Suggesting. "This is a particularly tricky policy for the Obama
administration to propose because they brutalized John McCain for
suggesting much the same thing. McCain, they said, was planning to tax
employer health care benefits for the first time in history." (Ezra
Klein, "What Obama's Budget Does -- And Doesn't - Say," The American
Prospect's "Ezra Klein" Blog, www.prospect.org, 2/22/09)
Even Other Democrats Are Beginning To Question The Amount Of Debt That President Obama's Health Care Plans Would Bring:
Rep. Jim Marshall (D-GA) Suggested Avoiding More Debt Was More Important Right Now Than Providing Universal Health Care. "One Blue Dog Democrat in the House made clear today that he is unlikely to support President Obama's health care reform plans unless it is revenue neutral and does not add long-term debt to the nation's balance sheet. In an appearance on ABC News Now's 'Politics Live,' Rep. Jim Marshall, D-Ga. ... suggested that avoiding additional debt is a greater priority for the country's economic health than providing universal health care coverage for all Americans." (David Chalian, "Blue Dog To Obama: Health Care Shouldn't Increase Debt," ABC News' "The Note" Blog, www.abcnews.com, 3/2/09)
-- Rep. Marshall: "Increasing Spending Without Coming Up With Revenue
That Matches That Spending Or Cutting Spending Some Place Else Is Just
Not The Direction That We Need To Head In." Marshall: "Frankly all of
us would like to see more Americans have access to health care and
there will be a lot of different arguments concerning the appropriate
plan, but I think there's a larger issue on the table now and I think
the President has a real opportunity to show some leadership with
regard to that issue, and it's the long-term fact that our budget just
isn't sustainable ... Increasing spending without coming up with
revenue that matches that spending or cutting spending some place else
is just not the direction that we need to head in. We've been doing
that too long now. We're addicted to debt, w e ran up debt
unbelievably during the Bush administration years, and I hope the
administration will show some real leadership and head this country
towards a sustainable course in the long run." (David Chalian, "Blue
Dog To Obama: Health Care Shouldn't Increase Debt," ABC News' "The
Note" Blog, www.abcnews.com, 3/2/09)
Democrats Have Already Passed And Proposed Trillions Since President Obama Was Sworn In:
President Obama Proposed Spending Between $3.5 And $4 Trillion In His FY2010 Budget. "Obama's budget overview will call for between $3.5 trillion and $4 trillion in spending in fiscal year 2010 and creates space for up to $750 billion in additional bank bailout funds this year - money that hasn't been requested and the administration hopes will not be necessary to stabilize the still-reeling financial system." (Major Garrett, "Obama's Budget Projects $1.75 Trillion Deficit," FoxNews.com, www.foxnews.com, 2/26/09)
Last Month, President Obama Signed The $787 Billion Economic Stimulus Package. "The $787 billion stimulus bill that President Barack Obama signed Tuesday was a warm-up act, an emergency provision aimed at stimulating a moribund economy." (David Lightman and Margaret Talev, "How Much Government Spending Is Ahead? Stay Tuned," The Miami Herald, 2/20/09)
Last Week, Democrats In The House Passed A $410 Billion Omnibus Spending Bill. "The U.S. House voted to boost spending on domestic programs by 8 percent, ease restrictions on travel to Cuba and kill a school voucher program in Washington, D.C., as part of a $410 billion spending bill." (Brian Faler, "House Approves $410 Billion 'Omnibus' Spending Bill," Bloomberg, 2/25/09)
President Obama Announced A $275 Billion Plan To Stave Off Foreclosures. "After a week dominated by programs that involve spending -- in addition to the stimulus package, the plan to stave off foreclosures could cost taxpayers as much as $275 billion -- Mr. Obama used his weekly radio and Internet address to chart the immediate road ahead." (Sheryl Gay Stolberg, "Obama Pledges To Seek Deficit Cuts," The New York Times, 2/21/09)
WILL A HEALTH CARE PROPOSAL INCLUDE CAMPAIGN PROMISES?
During The Campaign, Obama Proposed An Employer Mandate And Government-Organized Marketplace For Health Insurance:
Obama Proposed A "Government-Organized Marketplace" For Health Insurance. "During his presidential campaign, Mr. Obama proposed a system in which people could buy insurance through a government-organized marketplace, where private plans and a new government-run plan would compete." (Laura Meckler, "Tough Questions Dog Health-Care Overhaul," The Wall Street Journal, 3/3/09)
Obama Proposed Forcing Businesses To Cover Their Employees Or Pay Into A Fund. "During his campaign, Mr. Obama proposed that large businesses be required to offer coverage or pay into a fund, while small businesses that offer coverage would get a tax credit." (Laura Meckler, "Tough Questions Dog Health-Care Overhaul," The Wall Street Journal, 3/3/09)
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Today, President Obama Will Host A Health Care Summit:
Today, President Obama Will Host A Summit On Health Care Issues. "On Thursday, Mr. Obama will host a summit on health-care issues where a variety of stakeholders will come together with members of Congress." (Laura Meckler, "Tough Questions Dog Health-Care Overhaul," The Wall Street Journal, 3/3/09)
EVEN MORE SPENDING? HIGHER TAXES?
President Obama's Health Care Plan Could Cost More Than $1 Trillion:
Estimates Place The Cost Of President Obama's Health Care Plan At Over $1 Trillion Over The Next Decade. "Estimates put the full cost of Mr. Obama's health plan at more than $1 trillion over 10 years." (Laura Meckler, "Tough Questions Dog Health-Care Overhaul," The Wall Street Journal, 3/3/09)
The President Has Been Vague About Funding His Health Care Plan:
President Obama Has Been Vague On How His Health Care Plan Would Be Financed. "Mr. Obama has been vague about how the country's future health-care system should be structured, but he was detailed last week about how to pay for it. He proposed raising $634 billion over 10 years through tax increases on the wealthy and cuts to existing government health-care spending." (Laura Meckler, "Tough Questions Dog Health-Care Overhaul," The Wall Street Journal, 3/3/09)
In The Past, Obama Proposed Funding Health Care Reforms By Repealing The Bush Tax Cuts:
Originally, President Obama Said He Would Finance His Health Care Plans By Rolling Back The Bush Tax Cuts. "On his Presidential Transition website, President Obama said he would 'pay for his $50 - $65 billion health care reform effort by rolling back the Bush tax cuts for Americans earning more than $250,000 per year and retaining the estate tax at its 2009 level.'" (Jake Tapper, "Read His Lips: New Taxes," ABC News' "Political Punch" Blog, www.abcnews.com, 2/26/09)
But Instead, Democrats Have Already Announced Plans For Billions In New Taxes To Fund Health Care:
President Obama Still Plans On Ending The Bush Tax Cuts; But Instead Of Using Them To Fund Health Care, He Proposed A New Tax. "But as we learned yesterday afternoon, though the President is certainly planning on raising taxes on the wealthiest Americans by allowing the Bush tax cuts to expire next year -- making the top rate jump from 35% to 39.6% -- the President plans on partially funding the Health Care Reserve fund by raising another, new tax on those families making $250,000 a year, specifically from reducing the itemized deduction rate for families with incomes over $250,000, limiting it to 28 percent." (Jake Tapper, "Read His Lips: New Taxes," ABC News' "Political Punch" Blog, www.abcnews.com, 2/26/09)
President Obama Proposed A $634 Billion Reserve Fund For Health Care, That Experts Believe Will Cost At Least $1 Trillion. "President Obama is proposing to begin a vast expansion of the U.S. health-care system by creating a $634 billion reserve fund over the next decade, launching an overhaul that most experts project will ultimately cost at least $1 trillion. The 'reserve fund' in the budget proposal being released today is Obama's attempt to demonstrate how the country could extend health insurance to millions more Americans and at the same time begin to control escalating medical bills that threaten the solvency of families, businesses and the government." (Ceci Connolly, "Obama Proposes $634 Billion Fund For Health Care," The Washington Post, 2/26/09)
Democrats Plan To Pay For The Reserve Fund By Capping Tax Deductions, Amounting In A Tax Increase Of More Than $300 Billion. "About half the money for the new fund would come by capping itemized tax deductions for Americans in the top income bracket. The proposal, which administration officials characterize as a 'shared-responsibility issue,' would reduce the value of tax deductions for families earning more than $250,000 by about 20 percent, according to administration documents." (Ceci Connolly, "Obama Proposes $634 Billion Fund For Health Care," The Washington Post, 2/26/09)
Does The Obama Administration Plan On Using An Employer Tax Exclusion To Help Fund Health Care?
There Is Speculation That Democrats Will Propose An Employer Tax Exclusion To Help Fund The Health Care Proposals. "The administration, as John Cohn says, means to leave the rest of the financing question to Congress. But according to both members of Congress and the administration, that ambiguity obscures a specific solution under examination: The employer tax exclusion." (Ezra Klein, "What Obama's Budget Does -- And Doesn't - Say," The American Prospect's "Ezra Klein" Blog, www.prospect.org, 2/22/09)
-- This Is The Same Idea That The Obama Campaign "Brutalized" McCain For
Suggesting. "This is a particularly tricky policy for the Obama
administration to propose because they brutalized John McCain for
suggesting much the same thing. McCain, they said, was planning to tax
employer health care benefits for the first time in history." (Ezra
Klein, "What Obama's Budget Does -- And Doesn't - Say," The American
Prospect's "Ezra Klein" Blog, www.prospect.org, 2/22/09)
Even Other Democrats Are Beginning To Question The Amount Of Debt That President Obama's Health Care Plans Would Bring:
Rep. Jim Marshall (D-GA) Suggested Avoiding More Debt Was More Important Right Now Than Providing Universal Health Care. "One Blue Dog Democrat in the House made clear today that he is unlikely to support President Obama's health care reform plans unless it is revenue neutral and does not add long-term debt to the nation's balance sheet. In an appearance on ABC News Now's 'Politics Live,' Rep. Jim Marshall, D-Ga. ... suggested that avoiding additional debt is a greater priority for the country's economic health than providing universal health care coverage for all Americans." (David Chalian, "Blue Dog To Obama: Health Care Shouldn't Increase Debt," ABC News' "The Note" Blog, www.abcnews.com, 3/2/09)
-- Rep. Marshall: "Increasing Spending Without Coming Up With Revenue
That Matches That Spending Or Cutting Spending Some Place Else Is Just
Not The Direction That We Need To Head In." Marshall: "Frankly all of
us would like to see more Americans have access to health care and
there will be a lot of different arguments concerning the appropriate
plan, but I think there's a larger issue on the table now and I think
the President has a real opportunity to show some leadership with
regard to that issue, and it's the long-term fact that our budget just
isn't sustainable ... Increasing spending without coming up with
revenue that matches that spending or cutting spending some place else
is just not the direction that we need to head in. We've been doing
that too long now. We're addicted to debt, w e ran up debt
unbelievably during the Bush administration years, and I hope the
administration will show some real leadership and head this country
towards a sustainable course in the long run." (David Chalian, "Blue
Dog To Obama: Health Care Shouldn't Increase Debt," ABC News' "The
Note" Blog, www.abcnews.com, 3/2/09)
Democrats Have Already Passed And Proposed Trillions Since President Obama Was Sworn In:
President Obama Proposed Spending Between $3.5 And $4 Trillion In His FY2010 Budget. "Obama's budget overview will call for between $3.5 trillion and $4 trillion in spending in fiscal year 2010 and creates space for up to $750 billion in additional bank bailout funds this year - money that hasn't been requested and the administration hopes will not be necessary to stabilize the still-reeling financial system." (Major Garrett, "Obama's Budget Projects $1.75 Trillion Deficit," FoxNews.com, www.foxnews.com, 2/26/09)
Last Month, President Obama Signed The $787 Billion Economic Stimulus Package. "The $787 billion stimulus bill that President Barack Obama signed Tuesday was a warm-up act, an emergency provision aimed at stimulating a moribund economy." (David Lightman and Margaret Talev, "How Much Government Spending Is Ahead? Stay Tuned," The Miami Herald, 2/20/09)
Last Week, Democrats In The House Passed A $410 Billion Omnibus Spending Bill. "The U.S. House voted to boost spending on domestic programs by 8 percent, ease restrictions on travel to Cuba and kill a school voucher program in Washington, D.C., as part of a $410 billion spending bill." (Brian Faler, "House Approves $410 Billion 'Omnibus' Spending Bill," Bloomberg, 2/25/09)
President Obama Announced A $275 Billion Plan To Stave Off Foreclosures. "After a week dominated by programs that involve spending -- in addition to the stimulus package, the plan to stave off foreclosures could cost taxpayers as much as $275 billion -- Mr. Obama used his weekly radio and Internet address to chart the immediate road ahead." (Sheryl Gay Stolberg, "Obama Pledges To Seek Deficit Cuts," The New York Times, 2/21/09)
WILL A HEALTH CARE PROPOSAL INCLUDE CAMPAIGN PROMISES?
During The Campaign, Obama Proposed An Employer Mandate And Government-Organized Marketplace For Health Insurance:
Obama Proposed A "Government-Organized Marketplace" For Health Insurance. "During his presidential campaign, Mr. Obama proposed a system in which people could buy insurance through a government-organized marketplace, where private plans and a new government-run plan would compete." (Laura Meckler, "Tough Questions Dog Health-Care Overhaul," The Wall Street Journal, 3/3/09)
Obama Proposed Forcing Businesses To Cover Their Employees Or Pay Into A Fund. "During his campaign, Mr. Obama proposed that large businesses be required to offer coverage or pay into a fund, while small businesses that offer coverage would get a tax credit." (Laura Meckler, "Tough Questions Dog Health-Care Overhaul," The Wall Street Journal, 3/3/09)
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Saturday, December 13, 2008
PrimeRevenue Sees $50 Billion Benefit for Big Three and Suppliers With Government-Backed Finance Option
(BUSINESS WIRE)--PrimeRevenue described a program today outlining how a US government-backed initiative could provide 18 to 24 months or more in operational cashflow for the Big Three and their US-based direct suppliers. The value of the supply chain finance program, which could be deployed within a few weeks, is highlighted by recent published reports of automotive suppliers seeking cash advance payment on receivables in light of the current financial turmoil in the industry.
The program’s operation is based upon an underlying federal guarantee of Big Three payables to their direct suppliers. Unlike a loan, this guarantee would act as a ‘backstop’ to the Big Three’s payables, effectively honoring payment of those obligations in the event of a default. Private sector financial institutions would rely on the government guarantee to fund the early payment of receivables at rates highly favorable to the suppliers, providing a working capital improvement opportunity for both sides of the supply chain relationship.
“The US automotive industry has been deeply affected by the current turmoil in the credit markets,” said Joe Juliano, CEO of PrimeRevenue, “While not a panacea, Supply Chain Finance can be implemented quickly to support the liquidity needs of US auto companies and their suppliers, while at the same time unlocking significant bank funding, to help buy the time necessary to make these businesses successful again.”
James D. Robinson III, former Chairman and CEO of American Express Company, and General Partner, RRE Ventures is a board member of PrimeRevenue. In supporting the program, Mr. Robinson stated, “Supply Chain Finance provides a meaningful complement to solutions on the table today. Together with other government and industry initiatives, this approach directly can help the auto suppliers and the Big Three generate immediate working capital.”
A Supply Chain Finance (SCF) platform is a secure website that links payment information between companies, their suppliers, and financial institutions. Companies publish their payables information to the platform, well in advance of the payment maturity date. Suppliers access the website to view their receivables. If they wish, suppliers may select receivables to be paid in advance of the maturity date. Early payment requests are paid by third-party banks, directly to the supplier’s bank account, less a financing fee. In the case of a government-backed SCF program, financing rates would be extremely attractive as Big Three payables would be guaranteed by the US Treasury.
PrimeRevenue has forwarded information regarding its Supply Chain Finance approach to Congress, the Treasury and others.
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The program’s operation is based upon an underlying federal guarantee of Big Three payables to their direct suppliers. Unlike a loan, this guarantee would act as a ‘backstop’ to the Big Three’s payables, effectively honoring payment of those obligations in the event of a default. Private sector financial institutions would rely on the government guarantee to fund the early payment of receivables at rates highly favorable to the suppliers, providing a working capital improvement opportunity for both sides of the supply chain relationship.
“The US automotive industry has been deeply affected by the current turmoil in the credit markets,” said Joe Juliano, CEO of PrimeRevenue, “While not a panacea, Supply Chain Finance can be implemented quickly to support the liquidity needs of US auto companies and their suppliers, while at the same time unlocking significant bank funding, to help buy the time necessary to make these businesses successful again.”
James D. Robinson III, former Chairman and CEO of American Express Company, and General Partner, RRE Ventures is a board member of PrimeRevenue. In supporting the program, Mr. Robinson stated, “Supply Chain Finance provides a meaningful complement to solutions on the table today. Together with other government and industry initiatives, this approach directly can help the auto suppliers and the Big Three generate immediate working capital.”
A Supply Chain Finance (SCF) platform is a secure website that links payment information between companies, their suppliers, and financial institutions. Companies publish their payables information to the platform, well in advance of the payment maturity date. Suppliers access the website to view their receivables. If they wish, suppliers may select receivables to be paid in advance of the maturity date. Early payment requests are paid by third-party banks, directly to the supplier’s bank account, less a financing fee. In the case of a government-backed SCF program, financing rates would be extremely attractive as Big Three payables would be guaranteed by the US Treasury.
PrimeRevenue has forwarded information regarding its Supply Chain Finance approach to Congress, the Treasury and others.
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