Sen. Richard Shelby (R-Ala.) said Friday that the bailout plan put forth by the Bush administration won't work and that Congress is rushing to judgment.

"I think that what you have here is a profound proposal by the Secretary of the Treasury that a lot of people, Democrats and Republicans, have trouble with," he said on CNBC. "One, they're rushing the judgment. It's not linear. They're trying to push this in an emotional state saying the sky is falling if we don't do so and so."

Shelby, the ranking Republican on the Senate Banking Committee, later added: "What they're trying to do is bail out banks, not settle -- put liquidity into the market. And if you start with a structure that's wrong, no matter what you add to it, it won't work."

See the video here: http://www.cnbc.com/id/15840232?video=868529751.