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Home arrow Leading The News arrow Housing splits GOP, Bush
Leading The News PDF Print E-mail
Housing splits GOP, Bush
Posted: 07/15/08 07:50 PM [ET]

The housing crisis created a wedge between congressional Republicans and the president on Tuesday, giving Democrats an opportunity to push their plan.

Hours after President Bush called on Congress to pass the mammoth housing package quickly, congressional Republicans broke with him, trying to slow or stop an effort to shore up mortgage giants Fannie Mae and Freddie Mac.

The split prompted House Democrats to restore a top priority of the House liberals and the Congressional Black Caucus — $4 billion for local governments to buy foreclosed properties.

The Republican moves confused and amused Democrats who still seem prepared to steamroll past the objections of the minority and pass the bill early next week.

“I knew I was taking on extra responsibility when I took over the committee,” said Financial Services chairman Rep. Barney Frank (D-Mass.). “I didn’t know I was becoming the referee of Republican family disputes.”

The rescue plan, authored by Treasury Secretary Henry Paulson, also ran into headwinds in the Senate.

In a Banking Committee hearing, Sen. Jim Bunning (R-Ky.) berated Paulson, ridiculing his plan and at one point shouting, “I will do everything I can to stop it!” And Sen. Richard Shelby (Ala.), the top Republican on the committee, raised doubts about the proposals and indicated that he wouldn’t rubber stamp them.

The administration is asking for temporary authority for the Treasury Department to extend an unlimited line of credit to the mortgage giants and to purchase equity in them. It also wants Congress to allow the Federal Reserve to consult with Fannie’s and Freddie’s regulator on capital levels.

House Minority Leader John Boehner (R-Ohio) and Minority Whip Roy Blunt (R-Mo.) said the housing bill, which they’ve opposed previously, should be split from the rescue of the mortgage giants.

They want hearings on the plan to bolster the mortgage giants, which would bog the bill down for weeks and directly contradict the administration’s plan to move speedily to shore up the congressionally chartered companies.

“There is little question that action is necessary, but there are also important questions that must be answered about the Treasury proposal before we act,” the two leaders said in a joint statement.

That’s a break from Bush, who in a White House news conference said speed was of the essence.

“I urge members to move quickly to enact the plan in its entirety, along with the good oversight legislation that we have recommended for both Fannie Mae and Freddie Mac,” Bush said.

The Republican leaders’ call came 24 hours after a similar request by Rep. Jeb Hensarling (Texas), chairman of the conservative Republican Study Committee. That prompted Frank to allege “the most right-wing members of the Republican Party are in charge.”

But Boehner spokesman Michael Steel rejected that characterization, saying Boehner has long opposed the underlying bill and doesn’t think the legislation for the mortgage companies should be “jammed through.”


 
 
 
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