By Sean Mussenden
Media General News Service
Media General News Service
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WASHINGTON—Several North Carolina Democrats and Republicans with oversight of the financial sector balked Monday at the Bush administration’s proposal to purchase billions of dollars of Wall Street securities tied to bad mortgages.
"I’m not willing to vote for $700 billion to save an industry that comes out just as crooked on the other end," said Rep. Brad Miller, D-N.C., one of four North Carolina lawmakers on the House Financial Services committee. "I want real reforms."
To get credit flowing again and boost the economy, Treasury Secretary Henry Paulson asked Congress Sunday to allow the government to buy up to $700 billion worth of the toxic securities.
Leading congressional Democrats released their own bailout proposals Monday, arguing that any plan must be accompanied by increased government oversight of Wall Street and assistance for individuals hurt by the souring economy.
Like Miller, Rep. Mel Watt, D-N.C., a member of the financial services committee, said any bailout also needs to include protections for some individual homeowners, not only large investors harmed by the subprime mortgage crisis.
Watt said that in meetings with constituents in North Carolina last weekend, "Lots of people were asking ‘Will there be something in this package for people who are trying to pay off their mortgages but having trouble, and not just people on Wall Street?’"
Negotiations between congressional Democrats and the administration continued Monday. Associated Press reported that the administration agreed to some Democratic demands, including a provision to help prevent foreclosures on homes the government purchases from Wall Street firms.
Meanwhile, some Republicans said they would probably oppose the bailout, despite requests from GOP leaders and the Bush administration to approve the proposal quickly with few changes.
Rep. Walter Jones, R-N.C., who serves on the financial services committee, said there was a chance the administration could persuade him to support the package, but he thought it unlikely.
"I just don’t like the idea of these corporations, who made all these mistakes, all of a sudden saying, ‘Okay, Mr. Taxpayer, it’s time for you to bail us out,’" Jones said.
Bush tried Monday to inject a note of urgency in congressional deliberations, saying, "The whole world is watching."
Jones, though, said he was not convinced. "They’ve tried to panic the American people," into pressuring Congress to approve it, he said.
Sen. Elizabeth Dole, R-N.C., who serves on the Senate Banking committee, which scheduled a hearing on the bailout for today, said she remains "skeptical."
"I don’t think those advocating for the rescue have fully made their case," she said. "I have very serious concerns that this proposal could leave taxpayers holding the bag."
Rep. Patrick McHenry, R-N.C., said a major concern was the amount of taxpayer money needed to finance the bailout. Analysts said over the weekend that the plan might end up costing taxpayers less than $700 billion – and possibly make money – if the government is eventually able to sell enough of the poorly performing mortgage securities for a profit.
"Ultimately, my responsibility is to the American taxpayer - who will be the underwriter of this dramatic proposal," McHenry, a member of the financial services committee, said in a statement.
The full-court press by the administration put many free-market conservatives in Congress who generally oppose government intervention in the economy in a tough spot.
Rep. Virginia Foxx, R-N.C., was among 30 House conservatives who sent a letter to the administration last week after it announced an $85 billion bailout of the insurance firm AIG.
"We urge you in the strongest terms possible to refrain from conducting any additional government-financed bailouts for large financial firms. Regardless of the precautions taken, the risk to taxpayers and to the long-term future health of our economy remain just too great to justify," the group wrote.
In a statement Monday, Foxx said she had not yet decided whether to support the latest bailout. She expressed concern that the administration’s early proposal "looks like a blank check with no accountability. Taxpayers deserve better."
Sean Mussenden can be reached at smussenden@mediageneral.com or 202-662-7668.
"I’m not willing to vote for $700 billion to save an industry that comes out just as crooked on the other end," said Rep. Brad Miller, D-N.C., one of four North Carolina lawmakers on the House Financial Services committee. "I want real reforms."
To get credit flowing again and boost the economy, Treasury Secretary Henry Paulson asked Congress Sunday to allow the government to buy up to $700 billion worth of the toxic securities.
Leading congressional Democrats released their own bailout proposals Monday, arguing that any plan must be accompanied by increased government oversight of Wall Street and assistance for individuals hurt by the souring economy.
Like Miller, Rep. Mel Watt, D-N.C., a member of the financial services committee, said any bailout also needs to include protections for some individual homeowners, not only large investors harmed by the subprime mortgage crisis.
Watt said that in meetings with constituents in North Carolina last weekend, "Lots of people were asking ‘Will there be something in this package for people who are trying to pay off their mortgages but having trouble, and not just people on Wall Street?’"
Negotiations between congressional Democrats and the administration continued Monday. Associated Press reported that the administration agreed to some Democratic demands, including a provision to help prevent foreclosures on homes the government purchases from Wall Street firms.
Meanwhile, some Republicans said they would probably oppose the bailout, despite requests from GOP leaders and the Bush administration to approve the proposal quickly with few changes.
Rep. Walter Jones, R-N.C., who serves on the financial services committee, said there was a chance the administration could persuade him to support the package, but he thought it unlikely.
"I just don’t like the idea of these corporations, who made all these mistakes, all of a sudden saying, ‘Okay, Mr. Taxpayer, it’s time for you to bail us out,’" Jones said.
Bush tried Monday to inject a note of urgency in congressional deliberations, saying, "The whole world is watching."
Jones, though, said he was not convinced. "They’ve tried to panic the American people," into pressuring Congress to approve it, he said.
Sen. Elizabeth Dole, R-N.C., who serves on the Senate Banking committee, which scheduled a hearing on the bailout for today, said she remains "skeptical."
"I don’t think those advocating for the rescue have fully made their case," she said. "I have very serious concerns that this proposal could leave taxpayers holding the bag."
Rep. Patrick McHenry, R-N.C., said a major concern was the amount of taxpayer money needed to finance the bailout. Analysts said over the weekend that the plan might end up costing taxpayers less than $700 billion – and possibly make money – if the government is eventually able to sell enough of the poorly performing mortgage securities for a profit.
"Ultimately, my responsibility is to the American taxpayer - who will be the underwriter of this dramatic proposal," McHenry, a member of the financial services committee, said in a statement.
The full-court press by the administration put many free-market conservatives in Congress who generally oppose government intervention in the economy in a tough spot.
Rep. Virginia Foxx, R-N.C., was among 30 House conservatives who sent a letter to the administration last week after it announced an $85 billion bailout of the insurance firm AIG.
"We urge you in the strongest terms possible to refrain from conducting any additional government-financed bailouts for large financial firms. Regardless of the precautions taken, the risk to taxpayers and to the long-term future health of our economy remain just too great to justify," the group wrote.
In a statement Monday, Foxx said she had not yet decided whether to support the latest bailout. She expressed concern that the administration’s early proposal "looks like a blank check with no accountability. Taxpayers deserve better."
Sean Mussenden can be reached at smussenden@mediageneral.com or 202-662-7668.