Bailout Bill Fails in House Vote
Amid Defections in Both Parties
GREG HITT / Wall Street Journal 29sep2008
WASHINGTON The House of Representatives delivered a stunning defeat to legislation designed to rescue the nation's troubled financial system, sweeping aside a call from President Bush to "send a strong signal" of confidence to markets at home and abroad.
The 228-205 vote Monday exposed deep unease among rank-and-file lawmakers in both parties with what would be an unprecedented intervention in the private sector. The vote came as turmoil in financial markets widened, prompting the Federal Reserve to inject new capital into credit markets and forcing the government-arranged sale of Wachovia Corp. to Citigroup.
Monday, the Dow Jones Industrial Average plummeted 777.68 points, its biggest one-day drop in history. It ended down 7% at 10365.45, down 9.3% since crisis erupted a few weeks ago on Wall Street following the meltdown of Lehman Brothers Holdings. All 30 of the blue-chip indicator's components fell Monday.
The Bush-backed package now faces an uncertain future, though party leaders on both sides of the aisle are sure to consider revising the initiative, which Mr. Bush said Monday is needed to "keep the crisis in our financial system from spreading throughout our economy."
After the vote, House Minority Leader John Boehner (R., Ohio) said there would be an effort to bring back another bill, with further changes. "We've got to find a true middle ground," he said. "We need everybody to calm down and relax and get back to work."
Lawmakers on both sides of the aisle suggested the legislation is not dead. House Speaker Nancy Pelosi (D., Calif.) said at a press conference that the "lines of communication" remain open between policymakers and that Congress needs to take another "bite at the apple" on the market rescue plan legislation.
"It is difficult for me to imagine we would leave the market to its own devices and fears until Friday," said Rep. Adam Putnam (R., Fla.), the third-highest ranking Republican in the House. "We're encouraging members to understand the consequences to doing nothing, but I think members have strong convictions about this bill."
Ahead of the vote, Republican and Democratic leaders closed ranks around the White House, in a display of bipartisanship that further underscored the challenges facing the nation.
Mr. Boehner who last week quash an agreement between other congressional leaders urged lawmakers in advance of the roll call to set aside "what's in the best interest of our party," to instead consider the interest of the nation. "These are the votes that separate the men from the boys, and the girls from the women," said Mr. Boehner, who choked up as he spoke. Mr. Boehner also made clear the vote was going to be close, saying it "is in serious doubt."
Ahead of the vote, Mr. Bush and Vice President Richard Cheney, along with Treasury Secretary Henry Paulson, joined in lobbying for the bill, telephoning wavering rank-and file Republicans. A wide range of business groups, including the National Federation of Independent Businesses and the Business Roundtable, also pressed lawmakers in an effort to shore up support.
The measure would give Treasury a $700 billion line of credit and wide authority to buy the toxic mortgages, securities and financial assets that are undermining market confidence and threatening to tilt the U.S. into recession.
Under the bill, the money would be released in installments, with $250 billion being made available to Treasury immediately, followed shortly by another $100 billion. The final installment would be released after the president submits a plan detailing use of the funds, and lawmakers are given 15 days to consider a resolution of disapproval. Alongside the basic bailout, the bill would require Treasury to establish an insurance-based program to buy up bad assets, under which participating institutions would be charged a premium and given access to a fund that would also be used to help finance bailout.
The Bush administration is hoping financial markets will stabilize, as bad assets are pulled under the government's wing. Under the legislation, troubled banks and investment firms would qualify for government assistance, as would pension plans, local governments, and small banks.
The measure was brought to the House floor after several days of sometimes testy negotiations, and a marathon series of talks over the weekend. The effort was spurred by Mr. Bush's surprise declaration more than 10 days ago that the financial architectural of the country was faltering, and in need of immediate repair.
For rank and file lawmakers, the vote forced upon them produced anger and soul-searching about the economic and political costs of the bailout, and a difficult choice: whether to safely vote no on an issue unpopular with voters or swing behind a measure the nation's top economic leaders insist is needed to avoid a recession.
And across the Capitol, there was an overwhelming sense that decisions made on the plan would be career defining. There is no extra courage to go around," said Rep. Jim Cooper (D., Tenn.).
Many lawmakers said they weren't willing to go out on a limb. Rep. Lynn Woolsey (D., Calif.) said there still were "major questions unanswered" about the need for bailout. She said Wall Street isn't being asked to pony up enough to fund the rescue, and voiced doubts about whether the Bush administrationwhich engineered a series of earlier market interventions, including the takeover of Fannie Mae and Freddie Mac should be trusted this go-around.
"President Bush and Secretary Paulson have been wrong from the start about just about everything," she said.
Concern about the package was deepest among House Republicans, especially conservatives troubled with the cost and scope of the powers that would be granted Treasury. Negotiators tried to accommodate those concerns, adding in the insurance proposal, as a way to bring a more free-market patina to the bill.
But many Republicans still found the measure difficult to support. Rep. Jeb Hensarling (R., Texas) said he understands the "grave situation that every American will face should our credit markets freeze," but warned the bailout would fundamentally change the role of government in the economy. "I cannot in good conscience support this legislation," he said.
source: 29sep2008
House Bailout Vote Breakdown
WSJ 29sep2008
The 228-205 roll call Monday of the vote by which the House rejected a $700 billion emergency bailout for the nation's financial system.
A ``yes'' vote is a vote in favor of the bailout package.
Voting yes were 140 Democrats and 65 Republicans.
Voting no were 95 Democrats and 133 Republicans.
X denotes those not voting.
There is 1 vacancy in the 435-member House.
ALABAMA
Democrats Cramer, Y; Davis, Y.
Republicans Aderholt, N; Bachus, Y; Bonner, Y; Everett, Y;
Rogers, Y.
ALASKA
Republicans Young, N.
ARIZONA
Democrats Giffords, N; Grijalva, N; Mitchell, N; Pastor, N.
Republicans Flake, N; Franks, N; Renzi, N; Shadegg, N.
ARKANSAS
Democrats Berry, Y; Ross, Y; Snyder, Y.
Republicans Boozman, Y.
CALIFORNIA
Democrats Baca, N; Becerra, N; Berman, Y; Capps, Y; Cardoza, Y; Costa, Y; Davis, Y; Eshoo, Y; Farr, Y; Filner, N; Harman, Y; Honda, Y; Lee, N; Lofgren, Zoe, Y; Matsui, Y; McNerney, Y; Miller, George, Y; Napolitano, N; Pelosi, Y; Richardson, Y; Roybal-Allard, N; Sanchez, Linda T., N; Sanchez, Loretta, N; Schiff, N; Sherman, N; Solis, N; Speier, Y; Stark, N; Tauscher, Y; Thompson, N; Waters, Y; Watson, N; Waxman, Y; Woolsey, N.
Republicans Bilbray, N; Bono Mack, Y; Calvert, Y; Campbell, Y; Doolittle, N; Dreier, Y; Gallegly, N; Herger, Y; Hunter, N; Issa, N; Lewis, Y; Lungren, Daniel E., Y; McCarthy, N; McKeon, Y; Miller, Gary, Y; Nunes, N; Radanovich, Y; Rohrabacher, N; Royce, N.
COLORADO
Democrats DeGette, Y; Perlmutter, Y; Salazar, N; Udall, N.
Republicans Lamborn, N; Musgrave, N; Tancredo, Y.
CONNECTICUT
Democrats Courtney, N; DeLauro, Y; Larson, Y; Murphy, Y.
Republicans Shays, Y.
DELAWARE
Republicans Castle, Y.
FLORIDA
Democrats Boyd, Y; Brown, Corrine, Y; Castor, N; Hastings, Y; Klein, Y; Mahoney, Y; Meek, Y; Wasserman Schultz, Y; Wexler, Y.
Republicans Bilirakis, N; Brown-Waite, Ginny, N; Buchanan, N; Crenshaw, Y; Diaz-Balart, L., N; Diaz-Balart, M., N; Feeney, N; Keller, N; Mack, N; Mica, N; Miller, N; Putnam, Y; Ros-Lehtinen, N; Stearns, N; Weldon, Y; Young, N.
GEORGIA
Democrats Barrow, N; Bishop, Y; Johnson, N; Lewis, N; Marshall, Y; Scott, N.
Republicans Broun, N; Deal, N; Gingrey, N; Kingston, N; Linder, N; Price, N; Westmoreland, N.
HAWAII
Democrats Abercrombie, N; Hirono, N.
IDAHO
Republicans Sali, N; Simpson, Y.
ILLINOIS
Democrats Bean, Y; Costello, N; Davis, Y; Emanuel, Y; Foster, Y; Gutierrez, Y; Hare, Y; Jackson, N; Lipinski, N; Rush, N; Schakowsky, Y.
Republicans Biggert, N; Johnson, N; Kirk, Y; LaHood, Y; Manzullo, N; Roskam, N; Shimkus, N; Weller, X.
INDIANA
Democrats Carson, N; Donnelly, Y; Ellsworth, Y; Hill, N; Visclosky, N.
Republicans Burton, N; Buyer, N; Pence, N; Souder, Y.
IOWA
Democrats Boswell, Y; Braley, N; Loebsack, Y.
Republicans King, N; Latham, N.
KANSAS
Democrats Boyda, N; Moore, Y.
Republicans Moran, N; Tiahrt, N.
KENTUCKY
Democrats Chandler, N; Yarmuth, N.
Republicans Davis, N; Lewis, Y; Rogers, Y; Whitfield, N.
LOUISIANA
Democrats Cazayoux, N; Jefferson, N; Melancon, Y.
Republicans Alexander, N; Boustany, N; McCrery, Y; Scalise, N.
MAINE
Democrats Allen, Y; Michaud, N.
MARYLAND
Democrats Cummings, N; Edwards, N; Hoyer, Y; Ruppersberger, Y;
Sarbanes, Y; Van Hollen, Y.
Republicans Bartlett, N; Gilchrest, Y.
MASSACHUSETTS
Democrats Capuano, Y; Delahunt, N; Frank, Y; Lynch, N; Markey,
Y; McGovern, Y; Neal, Y; Olver, Y; Tierney, N; Tsongas, Y.
MICHIGAN
Democrats Conyers, N; Dingell, Y; Kildee, Y; Kilpatrick, N;
Levin, Y; Stupak, N.
Republicans Camp, Y; Ehlers, Y; Hoekstra, N; Knollenberg, N;
McCotter, N; Miller, N; Rogers, N; Upton, Y; Walberg, N.
MINNESOTA
Democrats Ellison, Y; McCollum, Y; Oberstar, Y; Peterson, N;
Walz, N.
Republicans Bachmann, N; Kline, Y; Ramstad, N.
MISSISSIPPI
Democrats Childers, N; Taylor, N; Thompson, N.
Republicans Pickering, Y.
MISSOURI
Democrats Carnahan, Y; Clay, N; Cleaver, N; Skelton, Y.
Republicans Akin, N; Blunt, Y; Emerson, Y; Graves, N; Hulshof,
N.
MONTANA
Republicans Rehberg, N.
NEBRASKA
Republicans Fortenberry, N; Smith, N; Terry, N.
NEVADA
Democrats Berkley, N.
Republicans Heller, N; Porter, Y.
NEW HAMPSHIRE
Democrats Hodes, N; Shea-Porter, N.
NEW JERSEY
Democrats Andrews, Y; Holt, Y; Pallone, Y; Pascrell, N; Payne,
N; Rothman, N; Sires, Y.
Republicans Ferguson, Y; Frelinghuysen, N; Garrett, N;
LoBiondo, N; Saxton, Y; Smith, N.
NEW MEXICO
Democrats Udall, N.
Republicans Pearce, N; Wilson, Y.
NEW YORK
Democrats Ackerman, Y; Arcuri, Y; Bishop, Y; Clarke, Y; Crowley, Y; Engel, Y; Gillibrand, N; Hall, Y; Higgins, Y; Hinchey, N; Israel, Y; Lowey, Y; Maloney, Y; McCarthy, Y; McNulty, Y; Meeks, Y; Nadler, Y; Rangel, Y; Serrano, N; Slaughter, Y; Towns, Y; Velazquez, Y; Weiner, Y.
Republicans Fossella, Y; King, Y; Kuhl, N; McHugh, Y; Reynolds, Y; Walsh, Y.
NORTH CAROLINA
Democrats Butterfield, N; Etheridge, Y; McIntyre, N; Miller, Y; Price, Y; Shuler, N; Watt, Y.
Republicans Coble, N; Foxx, N; Hayes, N; Jones, N; McHenry, N; Myrick, N.
NORTH DAKOTA
Democrats Pomeroy, Y.
OHIO
Democrats Kaptur, N; Kucinich, N; Ryan, Y; Space, Y; Sutton, N; Wilson, Y.
Republicans Boehner, Y; Chabot, N; Hobson, Y; Jordan, N; LaTourette, N; Latta, N; Pryce, Y; Regula, Y; Schmidt, N; Tiberi, N; Turner, N.
OKLAHOMA
Democrats Boren, Y.
Republicans Cole, Y; Fallin, N; Lucas, N; Sullivan, N.
OREGON
Democrats Blumenauer, N; DeFazio, N; Hooley, Y; Wu, N.
Republicans Walden, Y.
PENNSYLVANIA
Democrats Altmire, N; Brady, Y; Carney, N; Doyle, Y; Fattah, Y; Holden, N; Kanjorski, Y; Murphy, Patrick, Y; Murtha, Y; Schwartz, Y; Sestak, Y.
Republicans Dent, N; English, N; Gerlach, N; Murphy, Tim, N; Peterson, Y; Pitts, N; Platts, N; Shuster, N.
RHODE ISLAND
Democrats Kennedy, Y; Langevin, Y.
SOUTH CAROLINA
Democrats Clyburn, Y; Spratt, Y.
Republicans Barrett, N; Brown, Y; Inglis, Y; Wilson, Y.
SOUTH DAKOTA
Democrats Herseth Sandlin, N.
TENNESSEE
Democrats Cohen, Y; Cooper, Y; Davis, Lincoln, N; Gordon, Y; Tanner, Y.
Republicans Blackburn, N; Davis, David, N; Duncan, N; Wamp, N.
TEXAS
Democrats Cuellar, N; Doggett, N; Edwards, Y; Gonzalez, Y; Green, Al, N; Green, Gene, N; Hinojosa, Y; Jackson-Lee, N; Johnson, E. B., Y; Lampson, N; Ortiz, N; Reyes, Y; Rodriguez, N.
Republicans Barton, N; Brady, Y; Burgess, N; Carter, N; Conaway, N; Culberson, N; Gohmert, N; Granger, Y; Hall, N; Hensarling, N; Johnson, Sam, N; Marchant, N; McCaul, N; Neugebauer, N; Paul, N; Poe, N; Sessions, Y; Smith, Y; Thornberry, N.
UTAH
Democrats Matheson, N.
Republicans Bishop, N; Cannon, Y.
VERMONT
Democrats Welch, N.
VIRGINIA
Democrats Boucher, Y; Moran, Y; Scott, N.
Republicans Cantor, Y; Davis, Tom, Y; Drake, N; Forbes, N; Goode, N; Goodlatte, N; Wittman, N; Wolf, Y.
WASHINGTON
Democrats Baird, Y; Dicks, Y; Inslee, N; Larsen, Y; McDermott, Y; Smith, Y.
Republicans Hastings, N; McMorris Rodgers, N; Reichert, N.
WEST VIRGINIA
Democrats Mollohan, Y; Rahall, Y.
Republicans Capito, N.
WISCONSIN
Democrats Baldwin, Y; Kagen, N; Kind, Y; Moore, Y; Obey, Y.
Republicans Petri, N; Ryan, Y; Sensenbrenner, N.
WYOMING
Republicans Cubin, Y.
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