By NEIL H. SIMON, Media General News Service
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WASHINGTON—As the shape of a $700 billion proposal to rescue the economy shifted, Sen. Jim Webb, D-Va., called Monday for tighter regulation of Wall Street and salary caps for executives of firms that receive bailouts.
Most of Virginia’s congressional delegation waited to react to the quickly changing proposal.
Webb, the only member of the delegation to formally outline his views, said on the Senate floor that Congress should address “systemic flaws” in the financial markets – and not pass a “mechanical fix.”
“No bailout should occur without a return to increased regulation.” Webb said.
Rep. Eric I. Cantor, R-7th, disagreed with Webb, who is considering reinstating market regulations repealed in 1999 that had barred bank holding companies from owning other financial companies.
“We need to look forward to a new vision of what regulation should be not backwards,” Cantor said.
President Bush tried to prod lawmakers to act on the proposal it released over the weekend. Senate banking chairman Christopher Dodd, D-Conn., then released counter-offers. Both would give the government power to buy private-sector debt, including that held by foreign institutions.
With Congress planning to adjourn Friday for full-time campaigning, members braced Monday for late meetings as both sides tried to make sense of proposed legislation.
Besides the executive pay cap, Democrats want judges to be able to lower monthly mortgage payments for bankrupt homeowners so people could stay in their homes and avoid foreclosure.
Details of the overall bailout bill changed frequently as the lobbying intensified, said Rep. Virgil Goode, R-5th.
He said any plan that would have the U.S. government bail out foreign companies doing business here would be “particularly troubling.”
Reps. Robert C. Scott, D-3rd, and Tom Davis III, R-11th, both were said to be reviewing the proposals.
During an election season when many Republicans had tried to distance themselves from Bush, Cantor said most lawmakers were taking cues from Treasury Secretary Henry M. Paulson Jr. and were eager to act quickly on the plan.
“We have to do something to make sure our capital markets remain viable and remain robust,” said Rep. Eric I. Cantor, R-7th.
But Rep. James P. Moran, D-8th, suggested Congress take its time and return after the November elections to work on the package in a lame duck session.
“No responsible corporation would make a decision this important without reflection, and without consultation,” he said. “I’m not sure we’re going to be able to control the direction of the market one way or the other.”
(E-mail nsimon@mediageneral.com or call Neil Simon at 202-669-7669.)
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Most of Virginia’s congressional delegation waited to react to the quickly changing proposal.
Webb, the only member of the delegation to formally outline his views, said on the Senate floor that Congress should address “systemic flaws” in the financial markets – and not pass a “mechanical fix.”
“No bailout should occur without a return to increased regulation.” Webb said.
Rep. Eric I. Cantor, R-7th, disagreed with Webb, who is considering reinstating market regulations repealed in 1999 that had barred bank holding companies from owning other financial companies.
“We need to look forward to a new vision of what regulation should be not backwards,” Cantor said.
President Bush tried to prod lawmakers to act on the proposal it released over the weekend. Senate banking chairman Christopher Dodd, D-Conn., then released counter-offers. Both would give the government power to buy private-sector debt, including that held by foreign institutions.
With Congress planning to adjourn Friday for full-time campaigning, members braced Monday for late meetings as both sides tried to make sense of proposed legislation.
Besides the executive pay cap, Democrats want judges to be able to lower monthly mortgage payments for bankrupt homeowners so people could stay in their homes and avoid foreclosure.
Details of the overall bailout bill changed frequently as the lobbying intensified, said Rep. Virgil Goode, R-5th.
He said any plan that would have the U.S. government bail out foreign companies doing business here would be “particularly troubling.”
Reps. Robert C. Scott, D-3rd, and Tom Davis III, R-11th, both were said to be reviewing the proposals.
During an election season when many Republicans had tried to distance themselves from Bush, Cantor said most lawmakers were taking cues from Treasury Secretary Henry M. Paulson Jr. and were eager to act quickly on the plan.
“We have to do something to make sure our capital markets remain viable and remain robust,” said Rep. Eric I. Cantor, R-7th.
But Rep. James P. Moran, D-8th, suggested Congress take its time and return after the November elections to work on the package in a lame duck session.
“No responsible corporation would make a decision this important without reflection, and without consultation,” he said. “I’m not sure we’re going to be able to control the direction of the market one way or the other.”
(E-mail nsimon@mediageneral.com or call Neil Simon at 202-669-7669.)
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