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Bailout plan fails and the finger-pointing begins

COMBINED WIRE SERVICES

September 30, 2008

The financial-rescue plan intended to restore confidence in the U.S. banking system collapsed yesterday in partisan wrangling and finger pointing, setting off a scramble among the plan's backers for additional support before another vote.

Republicans blamed House Speaker Nancy Pelosi (D-Calif.) - whose scathing speech near the close of the debate assailed President George W. Bush's economic policies and a "right-wing ideology of anything goes, no supervision, no discipline, no regulation" of financial markets - for the defeat.

It was not much different from her usual tough words against the president and his party, but it apparently offended some Republicans nonetheless.

Rep. Adam Putnam (R-Fla.), the No. 3 House Republican, said Pelosi's "speech cost us votes" because it set a "partisan tone."

Republican presidential nominee John McCain leveled a similar charge against his Democratic challenger, Barack Obama.

"Senator Obama and his allies in Congress infused unnecessary partisanship into the process," he told reporters.

Democrats voted 140 to 95 in favor of the legislation, while just 65 Republicans backed the bill and 133 opposed it.

"The Republicans killed this," said House Financial Services Committee chairman Barney Frank (D-Mass.). "I think they are covering up the embarrassment of not having the votes."

House Appropriations Committee chairman David Obey (D-Wis.) scoffed at assertions that Pelosi's speech turned Republicans against the package, sinking the bill.

"Do they really think it's credible to say that they changed their mind on how they were going to vote because of a speech?" he said. "If they're that tenderhearted, they don't belong in this place."

The president, who in the days before the vote had warned of dire consequences if the bill was not passed, said yesterday that he was "very disappointed" by the defeat but vowed to continue pressing for an agreement.

Obama called for calm after the House vote and said a rescue package would eventually pass.

"It's important for the American public and for the markets to stay calm," he said at a rally in Westminster, Colo. "There are going to be some bumps and trials and tribulations and ups and downs before we get this rescue package done."

Banking Committee chairman Christopher Dodd (D-Conn.), appearing before reporters with Sen. Judd Gregg (R-N.H.), said a bailout plan could still pass Congress.

"We don't intend to leave here without the job being done," Dodd said. "While it may take another few days, we're confident that can happen."

Pelosi said yesterday that she was prepared to work with Republicans to pass the bill.

"The legislation may have failed; the crisis is still with us," she said. "What happened today cannot stand."

QUOTES

'The legislation may have failed; the crisis is still with us.' - House Speaker Nancy Pelosi (D-Calif.)

'I'm disappointed ... We've put forth a plan that was big because we've got a big problem.' - George W. Bush

"Madam Speaker, this is a huge cow patty with a piece of marshmallow stuck in the middle of it. I'm not going to eat that cow patty." Rep. Paul Broun (R-Ga.), on voting "no"

'Because somebody hurt their feelings, they decided to punish the country.'

- Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee