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Markets drop as House denies $700 billion Wall Street bailout
By AUDREY M. MARKS
The Dow Jones average plunged Monday as the U.S. House of Representatives rejected a federal financial intervention.
Despite a final vote of 228-205 against the $700 billion bail out, House leaders have vowed to bring the bill back for a second vote.
While Republican and Democrat House leaders pleaded with members during the three hour debate that inaction was much worse than the planned federal intervention, the votes in opposition to the plan were split on both sides of the aisle. Republicans made up 133 of the opposition and 94 Democrats voted against the bailout.
U.S. Rep. Nick Lampson, D-Stafford, said Monday before the vote, he was opposed to the plan he calls a “boondoggle” that would saddle every man, woman, and child with $2,500.
“The American taxpayer should not, must not, and cannot be viewed as an insurance policy for the misdeeds of Wall Street tycoons,” Lampson said in an e-mail statement to constituents. “Congress needs to exercise fiscal discipline and common sense.”
Republican challenger Pete Olson said Monday he would also have voted no on the financial bail out.
“While the financial dangers are real and impending, Congress must first make sure that they do not cause further unintended consequences with hasty action,” Olson said in a statement.
According to a congressional summary of the Emergency Economic Stabilization Act of 2008, up to $700 billion would be used to buy bad loans, with a focus on mortgages that are “clogging the balance sheets of financial institutions and making it difficult for working families, small businesses, and other companies to access credit, which is vital to a strong and stable economy.”
Supporters of the bill, from both sides of the aisle, pressed for the urgency that would drag down more than Wall Street if there was no congressional action.
Ranking Member of the House Committee on Financial Services, Rep. Spencer Bachus, R-Ala., said aside from Wall Street a collapse in the market could effect credit lines for loans, student education loans for college and put pensions in peril.
“I’m not willing to put a bullet into the revolver and spin it,” Bachus said.
Congress has already committed more than $130 billion in the last to help Bear Stearns, Fannie Mae and Freddie Mac, as well as the American International Group.
The House will reconvene on Thursday, after observing Rosh Hashanah, to take up attempts to cure the financial market. No plan has been outlined as of Tuesday of what Congress will consider.
Despite a final vote of 228-205 against the $700 billion bail out, House leaders have vowed to bring the bill back for a second vote.
While Republican and Democrat House leaders pleaded with members during the three hour debate that inaction was much worse than the planned federal intervention, the votes in opposition to the plan were split on both sides of the aisle. Republicans made up 133 of the opposition and 94 Democrats voted against the bailout.
U.S. Rep. Nick Lampson, D-Stafford, said Monday before the vote, he was opposed to the plan he calls a “boondoggle” that would saddle every man, woman, and child with $2,500.
“The American taxpayer should not, must not, and cannot be viewed as an insurance policy for the misdeeds of Wall Street tycoons,” Lampson said in an e-mail statement to constituents. “Congress needs to exercise fiscal discipline and common sense.”
Republican challenger Pete Olson said Monday he would also have voted no on the financial bail out.
“While the financial dangers are real and impending, Congress must first make sure that they do not cause further unintended consequences with hasty action,” Olson said in a statement.
According to a congressional summary of the Emergency Economic Stabilization Act of 2008, up to $700 billion would be used to buy bad loans, with a focus on mortgages that are “clogging the balance sheets of financial institutions and making it difficult for working families, small businesses, and other companies to access credit, which is vital to a strong and stable economy.”
Supporters of the bill, from both sides of the aisle, pressed for the urgency that would drag down more than Wall Street if there was no congressional action.
Ranking Member of the House Committee on Financial Services, Rep. Spencer Bachus, R-Ala., said aside from Wall Street a collapse in the market could effect credit lines for loans, student education loans for college and put pensions in peril.
“I’m not willing to put a bullet into the revolver and spin it,” Bachus said.
Congress has already committed more than $130 billion in the last to help Bear Stearns, Fannie Mae and Freddie Mac, as well as the American International Group.
The House will reconvene on Thursday, after observing Rosh Hashanah, to take up attempts to cure the financial market. No plan has been outlined as of Tuesday of what Congress will consider.
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