October 02, 2008
Tulsa World
Senate passes bailout
by: JIM MYERS World Washington Bureau
$700 billion bill now goes to the House
WASHINGTON - The Senate easily passed a $700 billion bailout Wednesday of the nation's financial system as leaders from both parties continued to warn of the economic woes that necessitate such dramatic action.
Approved by a vote of 74-25, the bill now goes to the House where a similar version was narrowly rejected earlier this week.
Oklahoma's two senators - Republicans Jim Inhofe and Tom Coburn - split on the vote with Inhofe voting against the bill and Coburn voting for it.
Inhofe, who conceded action was needed, said in the end he was not comfortable with the Bush administration's plan to use that much taxpayer money to buy vaguely defined toxic assets and turn them over to thousands of managers who might have been responsible for the financial problems.
He also questioned the way the package was being pushed through the process.
"Every time I have run into hysteria, world coming to an end, I've been on the opposite side and it's turned out to be right,'' Inhofe said.
He recalled the bomb shelters built in the 1950s, warnings in 1970s of another Ice Age and the Y2K concerns.
"And, now it is almost the same way,'' Inhofe said.
Other approaches, such as insuring the troubled assets instead of buying, should be considered but are not, he said.
Coburn's decision to support the package no doubt came as a bigger surprise for some because of his reputation for holding up certain bills that cost much less and calling for more deliberation on legislation.
"I support that we have to do something now,'' he said in floor remarks.
Without dwelling on his decision, Coburn then returned to a favorite topic of bashing Congress for not living up to its constitutional duties and laid the blame for the crisis on its doorstep.
He told Americans to direct their anger toward Congress for putting every job and retirement at risk.
"We are not going after the cause,'' Coburn said.
"While there is no guarantee this plan will work, I'm confident we will face a financial catastrophe if we do nothing,'' Coburn said following the vote.
"If banks continue to fail and stop lending many Americans could lose their job, be unable to secure a loan for a car, home or college education, and find their life savings and retirement in jeopardy.''
On Monday, members of the state's congressional delegation in the House also split on that chamber's version of the legislation.
Republican Reps. John Sullivan, Frank Lucas and Mary Fallin voted against it while Republican Tom Cole and Democrat Dan Boren voted for it.
Changes in the Senate version so far have not altered those votes.
"There have been improvements made to the financial rescue package by the Senate,'' Sullivan said in a written statement.
He singled out provisions increasing the insurance coverage for individual bank accounts from $100,000 to $250,000.
"I will continue to assess every option in front of me until a final bill is brought before the House for a vote,'' Sullivan said.
Another House vote is expected this week.
Under the proposal, which originated with the Bush administration, the money would buy troubled assets from financial firms.
Supporters say that would help free up the nation's credit market, a necessary step to avoid a major economic setback that easily could spread from Wall Street to Main Street.
They also claim the program could end up making money as the assets gain in value and are resold.
Wednesday's Senate vote brought presidential nominees Republican John McCain and Democrat Barack Obama back to the Capitol. Both supported the bill as did Obama's running mate, Joe Biden.
