Representatives Defend Bailout Votes

WHEELING - Local legislators defended their votes for and against a $700 billion Wall Street bailout plan that failed Monday in a 228-205 decision by the House of Representatives.

U.S. Rep. Shelley Moore Capito, R-W.Va., was the lone "no" vote among local representatives Charles Wilson and Zack Space, both D-Ohio, and Alan Mollohan, D-W.Va., all of whom voted in favor of the plan.

Space could not be reached for comment at press time Monday.

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People enter the Wall Street subway station Monday, in New York. Wall Street’s worst fears came to pass Monday when the government's financial bailout plan failed in Congress and stocks plunged precipitously, hurtling the Dow Jones industrials down 777.68, or 6.98 percent to 10,365.45.

"Today, the American people stood up to say they wouldn't stand for a $700 billion bailout," Capito said. "As a steward of West Virginia tax dollars, I couldn't in good conscience support something that would have amounted to the largest bailout in history, nor was I willing to turn my back on my constituents who were adamantly opposed to this proposal.

"A problem with its roots in bloated mortgages and Wall Street board rooms shouldn't fall at the feet of taxpayers for a fix. West Virginia families who pay their bills on time and play by the rules deserve far better than this $700 billion bet that would shoulder enormous debt on our children and grandchildren in the blink of an eye.

"We are in unchartered waters and I have a fundamental disagreement with the idea that we were about to spend $700 billion of taxpayer money to protect Wall Street investments without significant assurances that this would work. This is too much money, with too little time, too little support and no way to know if the plan would even do the job. Now we can come back to the drawing board and work for an outcome that is more in line with the needs or West Virginia taxpayers."

Capito spokesman Jonathan Coffin said Congress likely will be back in session Thursday.

"We'll look to see this process move forward," he said. "The discussion is not over, and we'll be seeking a plan that is a better deal for the taxpayers. The reality is that we shouldn't acquiesce to a misguided deal just to meet an artificial deadline. The goal must be to get the right deal for West Virginians, and that's where the congresswoman's focus will be."

"It is necessary to keep a credit crisis - that is already making it harder to buy a home, get a loan to start a small business, or even finance a student's college education - from creating much more serious economic problems in communities all across America," Mollohan said.

He described Monday's vote as a setback, noting Congress would remain in session to work on the legislation to stabilize the nation's financial system.

"Eleven days ago, President Bush and Treasury Secretary Henry Paulson told Congressional leaders that a looming financial crisis threatened the economy. This warning, coming after months of assurance from the President that the fundamentals of the economy were strong, caught many in the country by surprise. Congressional Democrats took their warning seriously and began an intense period of negotiations with the administration to refashion the president's initial plan, which was little more than a $700 billion no-strings-attached bailout for some of Wall Street's biggest firms," he said.

Provisions were added to the proposed legislation. According to information from Mollohan's office, "Specifically, the plan would: give the government an ownership stake in participating companies, ensuring that taxpayers would not foot the bill for mistakes made on Wall Street; place sharp restrictions on executive compensation for participating companies; allow the government to purchase troubled assets from pension plans, local governments, and small banks that serve low- and middle-income families; put taxpayers first in line to recover assets if participating companies fail; establish four separate oversight entities, including an independent board appointed by bipartisan leaders of Congress that can overrule the Treasury Department; and direct the Treasury Department to modify mortgages it owns to help reduce the 2 million foreclosures projected over the next year."

Wilson also noted the plan was improved since first being presented by Bush.

"I'm disappointed that so many members of the House put their own political futures ahead of America's future. I believe I stood up for America and voted for the country with this vote. I supported this emergency legislation because it was crafted and supported by a group of Democrats and Republicans, it was not a gift to Wall Street and because it would have protected Main Street. Our plan required that every dollar be paid back," he said.

According to Wilson's office, improvements to the legislation included: "Banning multi-million dollar golden parachutes for executives who retire from failing companies; tough independent oversight and transparency; and preventing home foreclosures crippling the American economy, allowing the government to work with loan servicers on new mortgage terms."