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House Republicans expressed skepticism about the administration’s plan for bailing out Wall Street during a closed-door meeting with Vice President Cheney and other administration officials Tuesday.
Lawmakers leaving the hour-and-a-half-long meeting said Cheney was told that the plan lacked the details they needed to grant swift approval for the Treasury to be given $700 billion to purchase failing mortgage-related securities from banks and other financial institutions.
“Just because God created the world in seven days doesn't mean we have to pass this bill in seven days," said Rep. Joe Barton (R-Texas). Barton said he did not appreciate being told he had to vote for legislation with only one week to review complicated terms with which he was not familiar.
In the Senate, some Republicans said they also had doubts about the plan.
Sen. Orrin Hatch (R-Utah) said he has not yet made a decision but is hearing “all negative” feedback from voters in Utah about Treasury Secretary Henry Paulson’s plan.
“Secretary Paulson is a very bright guy with a lot of experience in the financial world, and I always want to listen to whatever he's suggesting. But I'm concerned about it,” Hatch said. He added that his Utah constituents are telling him “not to support that $700 billion bailout. They look at it as a bailout.”
The administration is pressing hard to sell the plan, which it has asked Congress to approve by the end of the week. Paulson and Federal Reserve Chairman Ben Bernanke appeared at a Senate Banking Committee hearing on Tuesday morning and will visit the House Financial Services Committee on Wednesday.
Cheney, White House Chief of Staff Josh Bolten and U.S. National Economic Council director Keith Hennessey were invited to the House GOP conference to address members and answer their questions, Minority Leader John Boehner (R-Ohio) told reporters.
Many lawmakers are struggling to understand the complexities of what they are being asked to approve this week.
“I had never heard of credit default securities until last week,” said Barton.
Rep. Eric Cantor (Va.), the chief deputy whip for the House GOP, said he too was still reviewing the Paulson proposal. “I still have a lot of questions how this works,” he said.
National Republican Senatorial Committee Chairman John Ensign (Nev.) said he has resorted to reaching out to economists for feedback and input.
“Because of the complexity of this, the vast majority of people don't understand it,” he said. “I can't even tell you how many hours I've spent talking, reading, researching and everything just to be able to make an informed decision.
“This is very, very complex but also very dangerous if we do the wrong thing. It's also very dangerous if we don't act,” he said.
Boehner told reporters the package must go through quickly given the gravity facing the economy. Stocks dropped nearly 400 points on Monday amid uncertainty over when Congress would act. On Tuesday, the Dow Jones average was up 38 points at midday.
“If you have three or four weeks, you might have options on the table. If you had three or four months you might have more options on the table,” Boehner said.
He added, “I want this bill as clean as possible.”
Democrats are pressing for the bill to include provisions to help homeowners in danger of foreclosure, as well as restrictions on the compensation that executives of the companies taking part in the bailout may receive.
Some Republicans have also voiced support for such provisions, and Hatch on Tuesday said the Treasury Department should receive an equity stake in return for shoring up endangered companies. Paulson has resisted such steps.
Such a move, Hatch said, “could really protect the taxpayer.” |
