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Washington: Corker gives thumbs down to financial bailout plan
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WASHINGTON — Sen. Bob Corker, R-Tenn., a member of the Senate Banking Committee, said the sweeping financial bailout outlined by Treasury Secretary Henry Paulson fails to provide sufficient oversight, and he indicated he likely will vote against the bill.
“I think he’s asking for more freedom, more leeway with $700 billion than is appropriate,” Sen. Corker said Monday, a day after meeting with Mr. Paulson and Federal Reserve Chairman Ben Bernanke about the proposal. “There are some parameters that have to exist with a $700 billion outlay, and (Mr. Paulson) resisted all of those.”
CORKER ON BAILOUT
Sen. Bob Corker, R-Tenn., a member of the Senate Banking Committee, said he is concerned by Treasury Secretary Henry Paulson’s unwillingness to include measures that provide more oversight and taxpayer protections with the $700 billion bailout.
The Treasury Department’s plan, unveiled over the weekend, would involve the federal government buying up to $700 billion worth of “toxic” debt, such as overdue mortgages, from ailing financial firms. The proposal has come under attack by Democrats and Republicans for using taxpayer dollars to rescue private corporations and for wording in the plan that says Mr. Paulson’s decisions “may not be reviewed by any court of law or any administrative agency.”
Rep. Lincoln Davis, D-Tenn., a member of the House Financial Services Committee, said he still is reviewing the proposal, along with alternatives offered by Sen. Chris Dodd, D-Conn., and Rep. Barney Frank, D-Mass., both chairmen of their respective chambers’ committees on banking.
Mr. Paulson and Mr. Bernanke are scheduled to testify before the Senate Banking Committee today and the House Financial Services Committee on Wednesday.
Last week, as details of the Treasury Department plan began to emerge, Rep. Davis had said he was “extremely unhappy” that “the wealthy and risk-taking investors are getting bailed out at the expense of people who make minimum wage.”
Sen. Corker said he is most troubled by the fact that Mr. Paulson intends for the government to purchase the distressed debt at prices above market value to give financial institutions better footing, which could leave taxpayers on the money-losing end of the deal. He said he suggested to Mr. Paulson that a third-party entity be created to provide oversight of the transactions, but he was met with resistance.
“There are major questions about whether the entire engineering of our financial system should be left to one man with total leeway to deal with this,” Sen. Corker said. “Compound that with the fact that Secretary Paulson likely will not be here (after a new presidential administration is inaugurated) in January 2009 — that is very troubling.”
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Comments
The "bailout" plan is proof of what is REALLY happening in our government which has been a long time practice of politics, power and greed, not to mention disconcern for ALL Americans. If this bailout passes the House and Senate; then ladies and gentlemen, YOU are gulity of self preservation and sacrifice of all those who put you in office.
Our constitution never said it was OK to fill a seat of public service and responsibility to the masses and all in while become rich, selfish and money biased fat a#&*&!!! Get the point Congressmen and women & Senators? We need TWO new admendments to the constitution, first; you can't be a rich money munger and hold public office and secondly, you cannot become rich by the spoils of your abuse of power at the local, state and federal levels. Our representation at this time is mostly tainted and tilted to insure and maintain the "fat cat" status that has been the status quo of OUR government for a long, long time.
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