WASHINGTON, DC -- In the wake of the Federal Reserve's latest rate cuts and actions to help Bear Stearns meet its financial obligations, U.S. Senator Jack Reed (D-RI), a senior member of the Banking Committee, today issued the following statement:

"This weekend's dramatic and extraordinary action by the Federal Reserve and the Treasury Department demonstrate the urgent and critical challenges facing our economy.

"The same focus and aggressiveness the Administration directed toward rescuing Bear Sterns should be applied to the economic problems facing America's homeowners.

"The President needs to address the middle-class folks who are struggling with the mortgage crisis, their neighbors whose homes are losing value due to foreclosures, and the local communities dealing with the fallout from declining property taxes.

"Democrats have put forth a plan that would help more families refinance out of bad loans, stabilize the economy, and improve regulations so this type of foreclosure crisis never happens again.

"Now that the Bush Administration has addressed the concerns of sophisticated investors, it should support legislation to reduce the impact of the foreclosure crisis on middle-class families."