E2326 CONGRESSIONAL RECORD — Extensions of Remarks November 20, 2008 

troops played a decisive role in the success of 

the surge. Last month I once again visited 

Baghdad to meet with the leadership of the 

federal government. We stressed our commitment to developing an Iraqi state that 

abides by its constitution and that is based 

upon a federal model with clearly delineated 

powers for its regions. 

In spite of all this, some commentators 

now suggest that the Kurds are causing problems by insisting on territorial demands and 

proceeding with the development of 

Kurdistan’s oil resources. These allegations 

are troubling. We are proceeding entirely in 

accord with the Iraqi constitution, implementing provisions that were brokered by 

the U.S. 

In the constitutional negotiations that 

took place in the summer of 2005, two issues 

were critical to us: first, that the Kurdistan 

Region has the right to develop the oil on its 

territory, and second, that there be a fair 

process to determine the administrative borders of Iraq’s Kurdistan Region—thus resolving once and for all the issue of ‘‘disputed’’ 

territories. 

Unfortunately, ever since the discovery of 

oil in Iraq in the 1920s, successive Iraqi governments have sought to keep oil out of 

Kurdish hands, blocking exploration and development of fields in Kurdistan. Saddam 

Hussein’s government went even further, 

using Iraqi oil revenues to finance the military campaigns that destroyed more than 

4,500 Kurdish villages and to pay for the poison gas used to kill thousands of Kurdish civilians. 

The Kurdish leadership agreed to a U.S.- 

sponsored compromise in 2005 in which the 

central government would have the authority to manage existing oil fields, but new 

fields would fall under the exclusive jurisdiction of the regions. Since then, the KRG has 

taken the lead with Baghdad in negotiations 

on a hydrocarbon law that is faithful to 

Iraq’s constitution and is conducive to modernizing Iraq’s oil infrastructure and substantially increasing its oil production. 

We have awarded contracts for foreign oil 

companies (including some American ones) 

to explore our territory. In so doing, 

Kurdistan is not threatening the unity of 

Iraq. It is simply implementing the constitution. 

The ‘‘disputed territories’’ have a tragic 

history. Since the 1950s, Iraqi regimes encouraged Arabs to settle in Kirkuk and other 

predominantly Kurdish and Turkmen areas. 

Saddam Hussein accelerated this process by 

engaging in ethnic cleansing, expelling or 

killing Kurds and Turkmen, or by requiring 

nationality corrections (in which non-Arabs 

are forced to declare themselves to be Arabs) 

and by moving Arabs into Kurdish homes. 

The dispute between Baghdad and the 

Kurds over Kirkuk has lasted more than 80 

years and has often been violent. All sides 

have now agreed to a formula to resolve the 

problem, to bring justice to Kirkuk, and to 

correct the crimes against Kurds committed 

by Saddam Hussein’s regime. Iraq’s constitution requires that a referendum be held in 

disputed territories to determine if their 

populations want to join the Kurdistan Region. Conducting a plebiscite is not easy, but 

it is preferable to another 80 years of conflict. 

If the pro-Kurdistan side should lose the 

referendum in Kirkuk, I promise that 

Kurdistan will respect that result. And if 

they win, I promise that we will do everything in our power to ensure outsized representation of Kirkuk’s Turkmen, Arabs and 

Christians both on the local level and in the 

parliament and government of the Kurdistan 

Region. 

Regional stability cannot come from resolving internal disputes alone. That is why 

expanding and deepening our ties with Turkey is my top priority. 

My meeting last month in Baghdad with 

the Turkish special envoy to Iraq was a historic and positive development. There should 

be further direct contacts between the KRG 

and Turkey, as well as multilateral contacts 

that involve the U.S. We are eager to work 

with Turkey to seek increased peace and 

prosperity in the region. 

I am proud that the Kurdistan Region is 

both a model and gateway for the rest of 

Iraq. Our difficult path to a secular, federal 

democracy is very much inspired by the U.S. 

And so we look forward to working with the 

Obama-Biden administration to support and 

defend our hard-fought successes in Iraq, and 

to remain proud of what the Kurdistan region is today: a thriving civil society in the 

heart of the Middle East. When we insist on 

strict compliance with our country’s constitution, we are only following America’s 

great example. 

f 

HONORING MATTHEW DONALD 

SHUMAN 

HON. SAM GRAVES OF MISSOURI

IN THE HOUSE OF REPRESENTATIVES

Thursday, November 20, 2008 

Mr. GRAVES. Madam Speaker, I proudly 

pause to recognize Matthew Donald Shuman 

of Kansas City, Missouri. Matthew is a very 

special young man who has exemplified the 

finest qualities of citizenship and leadership by 

taking an active part in the Boy Scouts of 

America, Troop 1247, and earning the most 

prestigious award of Eagle Scout. 

Matthew has been very active with his 

troop, participating in many Scout activities. 

Over the many years Matthew has been involved with Scouting, he has not only earned 

numerous merit badges, but also the respect 

of his family, peers, and community. 

Madam Speaker, I proudly ask you to join 

me in commending Matthew Donald Shuman 

for his accomplishments with the Boy Scouts 

of America and for his efforts put forth in 

achieving the highest distinction of Eagle 

Scout. 

f 

COMPTROLLLER OF THE CURRENCY DUGAN REFUTES UNFAIR 

ATTACKS ON THE COMMUNITY 

REINVESTMENT ACT 

HON. BARNEY FRANK OF MASSACHUSETTS

IN THE HOUSE OF REPRESENTATIVES

Thursday, November 20, 2008 

Mr. FRANK of Massachusetts. Madam 

Speaker, during the recent campaign, motivated I believe by an effort to stave off muchneeded legislation establishing appropriate 

regulation for currently unregulated aspects of 

the financial industry, a number of people 

launched a concerted effort to blame the Community Reinvestment Act for our current financial crisis. Their argument—wholly inaccurate—was that the Community Reinvestment Act was the reason that a large number 

of irresponsible subprime loans were made. 

I was very pleased—although not surprised—that Comptroller of the Currency John 

C. Dugan, an appointee of President Bush, 

took the time on November 19th to refute 

these accusations. Comptroller Dugan is as 

well qualified to discuss this as anyone in the 

country, because he has a prime responsibility 

for the regulation of the safety and soundness 

of banks and the banking system. Given that, 

I believe it is essential that all Members have 

the benefit of his analysis. 

Comptroller Dugan is characteristically forthright in addressing the question of the role that 

CRA has played: 

‘‘There are even some that suggest that 

CRA is responsible for the binge of irresponsible subprime lending that ignited the crisis 

we now face. Let me squarely respond to this 

suggestion: I categorically disagree. While not 

perfect, CRA has made a positive contribution 

to community revitalization across the country 

and has generally encouraged sound community development lending, investment and 

service initiatives by regulated banking organizations. 

‘‘CRA is not the culprit behind the subprime 

mortgage lending abuses, or the broader credit quality issues in the marketplace. Indeed, 

the lenders most prominently associated with 

subprime mortgage lending abuses and high 

rates of foreclosure are lenders not subject to 

CRA . . . (B)anks subject to CRA and their 

affiliates originated or purchased only six percent of the reported high cost loans made to 

lower-income borrowers within their CRA assessment areas.’’ 

Madam Speaker, to make it clear that the 

forceful defense of CRA that I have just 

quoted is taken fully in context, I ask that 

those portions of Comptroller Dugan’s speech 

that discuss the CRA be printed here in their 

entirety. This firm statement by President 

Bush’s appointee with prime responsibility for 

the safety and soundness of the banking system should help us end the inaccurate, politically-motivated misrepresentation of the role 

that CRA has played. 

REMARKS BY JOHN C. DUGAN—COMPTROLLER

OF THE CURRENCY BEFORE THE ENTERPRISE

ANNUAL NETWORK CONFERENCE—NOVEMBER

19, 2008 

‘‘. . . Indeed, all of these efforts are fully 

in keeping with the OCC’s mission and the 

way that we approach our regulatory and supervisory responsibilities, including those 

under the Community Reinvestment Act. 

CRA supports banks doing what they do best 

and what they should want to do well—making viable lending and investment decisions, 

with acceptable rates of return, consistent 

with their business plans, I their own communities. 

Given recent public discussion, it is appropriate to ask about the role that CRA plays 

in the credit challenges we face on so many 

fronts. In my view, it plays a very positive 

role. Unfortunately, however, current market disruptions have clouded the accomplishments that CRA has generated, many of 

which we recognized last year during its 30th 

anniversary. There are even some who suggest that CRA is responsible for the binge of 

irresponsible subprime lending that ignited 

the credit crisis we now face. 

Let me squarely respond to this suggestion: I categorically disagree. While not perfect, CRA has made a positive contribution 

to community revitalization across the 

country and has generally encouraged sound 

community development lending, investment, and service initiatives by regulated 

banking organizations. 

CRA is not the culprit behind the subprime 

mortgage lending abuses, or the broader 

credit quality issues in the marketplace. Indeed, the lenders most prominently associated with subprime mortgage lending abuses 


smartinez on PROD1PC64 with REMARKS
November 20, 2008 CONGRESSIONAL RECORD — Extensions of Remarks E2327 

and high rates of foreclosure are lenders not 

subject to CRA. A recent study of 2006 Home 

Mortgage Disclosure Act data showed that 

banks subject to CRA and their affiliates 

originated or purchased only six percent of 

the reported high cost loans made to lowerincome borrowers within their CRA assessment areas. 

Over the last ten years, CRA has helped 

spur the doubling of lending by banking institutions to small businesses and farms, to 

more than $2.6 trillion. During this period, 

those lenders more than tripled community 

development lending to $371 billion. Overwhelmingly, this lending has been safe and 

sound. For example, single family CRA-related mortgages offered in conjunction with 

NeighborWorks organizations have performed on a par with standard conventional 

mortgages. Foreclosure rates within the 

NeighborWorks network were just 0.21 percent in the second quarter of this year, compared to 4.26 percent of subprime loans and 

0.61 percent for conventional conforming 

mortgages. Similar conclusions were reached 

in a study by the University of North Carolina’s Center for Community Capital, which 

indicates that high-cost subprime mortgage 

borrowers default at much higher rates than 

those who take out loans made for CRA purposes. 

Of course, not all single-family CRA mortgages performed this well, because these 

loans have experienced the same stresses as 

most other types of consumer credit. Nevertheless, a number of studies have shown that 

when these loans are made in conjunction 

with a structured homebuyer counseling program, mortgage performance is substantially 

improved. Affordable CRA multi-family 

projects utilizing low-income housing tax 

credits have also performed well, with an average foreclosure rate through 2006 of 0.08 

percent on the underlying mortgages. 

During the community tours I have taken 

over the past three years, I personally witnessed the positive impact that CRA partnerships have had in transforming communities, expanding homeownership, and promoting job creation and economic development. These partner ships between communities and financial institutions have also 

helped house senior citizens and people with 

special needs, built community facilities, 

and assisted small businesses serving low-income areas. 

In the Anacostia community of D.C., an 

area of economic resurgence that I have 

toured on several occasions, Enterprise’s 

Wheeler Creek project was a critical link in 

stabilizing a neighborhood that had been 

plagued by a troubled public housing project. 

Wheeler Creek involved development of forsale homes in conjunction with a bank community development corporation, as well as 

a bank’s purchase of low-income housing tax 

credits for rental housing. 

CRA projects also act as catalysts for 

other investments, job creation, and housing 

development. Such infusion of capital into 

these markets leverages public subsidies, 

perhaps as much as 10 to 25 times, by attracting additional private capital. Many of 

these CRA equity investments can be made 

under national banks’ public welfare investment authority. These bank investments 

have grown significantly over the years—totaling more than $25 billion over the past 

decade. Indeed, the OCC recently held its 

Managers Conference at the Grand Masonic 

Lodge on North Charles Street here in Baltimore, a public welfare investment funded by 

a national bank. To meet the demand to invest in similar types of projects, OCC successfully sought legislation last year to raise 

the cap on public welfare investments from 

10 to 15 percent of a bank’s capital and assets. This rise will enable the amount of such 

investments to increase by as much as $30 

billion. 

Interpreting national bank public welfare 

investment authority, OCC recently issued 

an approval related to energy conservation 

that may be of interest to Enterprise. This 

approval clarifies that such authority extends to bank investments in renewable energy tax credits primarily benefiting low-and 

moderate-income individuals and areas, government revitalization areas, rural underserved and distressed middle-income areas, 

and designated disaster areas. The investing 

bank can claim the credits and, in some instances, receive positive CRA consideration 

under the investment or community development testes. 

Your Green Communities initiative, and 

others like it, may be able to take advantage 

of these tools to obtain additional resources 

under the public welfare investment authority, CRA, and other available incentives to 

build many more sustainable homes and 

communities across the country. The research and examples described on your Web 

site demonstrate that moving to a green 

economy can generate a significant number 

of jobs, stimulate economic growth, and create a healthy environment in communities 

that Enterprise serves. 

As the credit market stabilizes, CRA-driven initiatives can also help us tackle challenges such as the preservation of homeownership opportunities and rental housing 

development. Opportunities also lie ahead 

for bank partnerships with Enterprise affiliates and other nonprofits to help mitigate 

the impact of foreclosures in communities 

across the country. . . 

Our nation has accomplished much since 

CRA’s passage. Perhaps even Jim Rouse 

could not imagine how much the flow of 

CRA-related capital and credit has contributed to affordable homeownership, jobs and 

business development, and healthy neighborhoods. In today’s challenging economy, the 

need for the positive results that CRA has 

generated are even greater, and the same is 

true for organizations like Enterprise. 

Thank you very much.’’ 

f 

HONORING JOHN M. MILAM 

HON. CHARLES A. GONZALEZ OF TEXAS

IN THE HOUSE OF REPRESENTATIVES

Thursday, November 20, 2008 

Mr. GONZALEZ. Madam Speaker, I rise 

today to honor a constituent of mine. Mr. John 

M. Milam has just retired after 34 years with 

San Antonio’s transit system, VIA, the last 16 

leading the company as general manager, 

president, and CEO, and I wish to thank him 

for his dedication and for his service to our 

community. 

Over the course of his tenure with VIA, Mr. 

Milam continually embraced change, and the 

system grew and improved in countless ways. 

He was among the first to install GPS tracking 

on VIA buses, ensuring that he knew where 

every bus and paratransit vehicle was at any 

moment, resulting in the best planned routes 

designed with the latest information. VIA acquired newer, more energy efficient vehicles, 

improving their finances as well as the environment. Mr. Milam’s insistence on making 

VIA one of the most cost-efficient transit systems in the country saved the system in the 

mid-1990s and allowed him to expand and improve services, making our public transportation system truly outstanding. 

It is all too easy to take a well-run transit 

system for granted. San Antonians simply expect VIA to be there when we need it, to run 

smoothly, and to provide a restful ride. John 

Milam ran VIA so well he made it look easy. 

But for hundreds of thousands of people, on 

millions of trips, over dozens of years, the efforts of John M. Milam made living in San Antonio that much better. The programs he 

began will continue to improve the area for 

years to come. He leaves behind a great legacy and we can all say, ‘‘John, thanks for a 

great ride.’’ 

f 

HONORING BRANDEN DEMAR 

THOELE 

HON. SAM GRAVES OF MISSOURI

IN THE HOUSE OF REPRESENTATIVES

Thursday, November 20, 2008 

Mr. GRAVES. Madam Speaker, I proudly 

pause to recognize Branden Demar Thoele of 

Kansas City, Missouri. Branden is a very special young man who has exemplified the finest 

qualities of citizenship and leadership by taking an active part in the Boy Scouts of America, Troop 1378, and earning the most prestigious award of Eagle Scout. 

Branden has been very active with his 

troop, participating in many Scout activities. 

Over the many years Branden has been involved with Scouting, he has not only earned 

numerous merit badges, but also the respect 

of his family, peers, and community. 

Madam Speaker, I proudly ask you to join 

me in commending Branden Demar Thoele for 

his accomplishments with the Boy Scouts of 

America and for his efforts put forth in achieving the highest distinction of Eagle Scout. 

f 

EXPRESSING CONDOLENCES TO 

THE FAMILIES OF CARLOS 

MARIN, ARTURO HERRERA, JAKE 

BRISBIN, JR., AND MATTHEW 

PETER JUNEAU 

HON. SOLOMON P. ORTIZ OF TEXAS

IN THE HOUSE OF REPRESENTATIVES

Thursday, November 20, 2008 

Mr. ORTIZ. Madam Speaker, I rise today to 

express my sadness on the untimely deaths of 

U.S. International Water and Boundary Commissioner, IWBC, Carlos Marin, IWBC Mexican Commissioner Arturo Herrera, Executive 

Director of the Rio Grande Council of Governments Jake Brisbin, Jr., and pilot Matthew 

Peter Juneau, who all lost their lives in a September 16 plane crash outside of Presidio, TX. 

I was shocked to hear of the plane crash 

and am deeply saddened by the loss. My 

deepest condolences are with the families of 

those who perished. 

I had the privilege of working with Commissioners Marin and Herrera on numerous 

issues affecting South Texas. They were 

strong advocates of continued cooperation between the United States and Mexico. Their 

service to the IWBC was matched by their 

dedication to improving the quality of life between the two nations. 

I will keep their families in my thoughts and 

prayers. 


smartinez on PROD1PC64 with REMARKS