from MNI 2008 Sep 25 at 21:43 ET:
TARP: Talks Go On; Opposition Building from House Republicans
By Margaret Chadbourn
WASHINGTON (MNI) - The rescue bill aimed to refuel the financial
system stalled Thursday following the emergency White House meeting
among congressional leaders with President Bush and the two presidential
candidates vying to succeed him.
To jumpstart negotiations, Treasury Secretary Hank Paulson and
Federal Reserve Chairman Ben Bernanke responded to calls from Senate
Banking Committee Chairman Chris Dodd and Sen. Harry Reid, the majority
leader, and agreed to meet on Capitol Hill late at night and speed up
the deal making process.
As the intense days of talks continued on the $700 billion plan
presented by Paulson to Congress, the tentative legislative deal in
response was slowed by House Republicans Thursday afternoon when they
circulated alternatives ahead of the White House meeting. Prior to
the session, hopes had been high lawmakers had an agreement to confront
the credit crisis and quicken economic recovery.
"We were surprised that Republicans have indicated right before we
went into the meeting (at the White House) that they had another
suggestion," Reid said during a news conference with reporters late
Thursday night.
"If we get support from House Republicans this could be done in a
matter of days," Reid said.
The sticking points from House Republicans have not been laid out
specifically, yet House Financial Services Chairman Barney Frank said
they dealt with the government providing insurance to beleaguered
financial firms. Frank was slated to join Paulson, Bernanke and Senate
Republican and Democratic leaders, in addition to his Democratic House
colleagues, to focus on a final accord.
"We are going to see if we can put this train back on the tracks,"
Reid said prior to heading into more rounds of negotiating sessions.
A Treasury spokeswoman said Secretary Paulson said:"Treasury staff
has been working with congressional committee staff since Saturday.
There are still open issues to be resolved, and we are committed to
resolving them."
Sen. Reid said a broad agreement on the financial rescue bill was
further complicated by Sen.McCain suspending his campaign to become
involved in the talks centered on giving the Treasury unprecedented power
purchase illiquid assets of troubled firms.
"We all agree that we don't want presidential politics to destroy
the leads that have been made," Reid said. "John McCain did nothing to
help, he only hurt the process."
A principal player in the crafting of a final bill, Sen. Dodd said
there are issues still on the drafting board, including: how to insure
taxpayers are protected, whether to limit executive compensation of
firms whose unmarketable assets are absorbed by the government, how to
implement strict oversight by federal regulators, and how to insert
anti-foreclosure measures. Earlier in the day, he had said there was an
agreement in principle on the $700 billion rescue package.
"This problem has gone far beyond lower Manhattan, the contagion is
being felt all across the country," Dodd said. "We don't have the luxury
of waiting a long time to debate and discuss all this."
Speaking to reporters prior to the meeting, House Speaker Nancy
Pelosi said, "Congress intends to act" in order to stabilize the markets
and protect Main Street. She said lawmakers are "not there yet,"
although she added "time is of the essence."
House Financial Services Chair Frank said he opposes the GOP
proposal floating in his lower chamber to provide insurance to troubled
firms instead of allowing Treasury to purchase their unmarketable
assets, although the specifics are still vague.
"I was fairly optimistic earlier," Frank told reporters. "We don't
know what House Republicans are going to do, I don't think Treasury
Secretary Paulson knows, or the White House, and that's the dilemma."
House Majority Leader Steny Hoyer said negotiations will move
forward without a deadline for arriving at a deal and promised lawmakers
"will be here as long as necessary" to work in Washington on the $700
billion measure. He said if a plan is "going to pass, it needs to be
bipartisan."
When Senator Richard Shelby emerged from the White House meeting
earlier he said there was "no agreement" at this juncture. The highest
ranking Republican on the Senate's banking committee, his comments did
not jibe with the more optimistic remarks of the chairman of the
committee, Dodd.
"We came out of the White House meeting with no agreement," Senator
Richard Shelby told reporters following the session.
TARP: Talks Go On; Opposition Building from House Republicans
By Margaret Chadbourn
WASHINGTON (MNI) - The rescue bill aimed to refuel the financial
system stalled Thursday following the emergency White House meeting
among congressional leaders with President Bush and the two presidential
candidates vying to succeed him.
To jumpstart negotiations, Treasury Secretary Hank Paulson and
Federal Reserve Chairman Ben Bernanke responded to calls from Senate
Banking Committee Chairman Chris Dodd and Sen. Harry Reid, the majority
leader, and agreed to meet on Capitol Hill late at night and speed up
the deal making process.
As the intense days of talks continued on the $700 billion plan
presented by Paulson to Congress, the tentative legislative deal in
response was slowed by House Republicans Thursday afternoon when they
circulated alternatives ahead of the White House meeting. Prior to
the session, hopes had been high lawmakers had an agreement to confront
the credit crisis and quicken economic recovery.
"We were surprised that Republicans have indicated right before we
went into the meeting (at the White House) that they had another
suggestion," Reid said during a news conference with reporters late
Thursday night.
"If we get support from House Republicans this could be done in a
matter of days," Reid said.
The sticking points from House Republicans have not been laid out
specifically, yet House Financial Services Chairman Barney Frank said
they dealt with the government providing insurance to beleaguered
financial firms. Frank was slated to join Paulson, Bernanke and Senate
Republican and Democratic leaders, in addition to his Democratic House
colleagues, to focus on a final accord.
"We are going to see if we can put this train back on the tracks,"
Reid said prior to heading into more rounds of negotiating sessions.
A Treasury spokeswoman said Secretary Paulson said:"Treasury staff
has been working with congressional committee staff since Saturday.
There are still open issues to be resolved, and we are committed to
resolving them."
Sen. Reid said a broad agreement on the financial rescue bill was
further complicated by Sen.McCain suspending his campaign to become
involved in the talks centered on giving the Treasury unprecedented power
purchase illiquid assets of troubled firms.
"We all agree that we don't want presidential politics to destroy
the leads that have been made," Reid said. "John McCain did nothing to
help, he only hurt the process."
A principal player in the crafting of a final bill, Sen. Dodd said
there are issues still on the drafting board, including: how to insure
taxpayers are protected, whether to limit executive compensation of
firms whose unmarketable assets are absorbed by the government, how to
implement strict oversight by federal regulators, and how to insert
anti-foreclosure measures. Earlier in the day, he had said there was an
agreement in principle on the $700 billion rescue package.
"This problem has gone far beyond lower Manhattan, the contagion is
being felt all across the country," Dodd said. "We don't have the luxury
of waiting a long time to debate and discuss all this."
Speaking to reporters prior to the meeting, House Speaker Nancy
Pelosi said, "Congress intends to act" in order to stabilize the markets
and protect Main Street. She said lawmakers are "not there yet,"
although she added "time is of the essence."
House Financial Services Chair Frank said he opposes the GOP
proposal floating in his lower chamber to provide insurance to troubled
firms instead of allowing Treasury to purchase their unmarketable
assets, although the specifics are still vague.
"I was fairly optimistic earlier," Frank told reporters. "We don't
know what House Republicans are going to do, I don't think Treasury
Secretary Paulson knows, or the White House, and that's the dilemma."
House Majority Leader Steny Hoyer said negotiations will move
forward without a deadline for arriving at a deal and promised lawmakers
"will be here as long as necessary" to work in Washington on the $700
billion measure. He said if a plan is "going to pass, it needs to be
bipartisan."
When Senator Richard Shelby emerged from the White House meeting
earlier he said there was "no agreement" at this juncture. The highest
ranking Republican on the Senate's banking committee, his comments did
not jibe with the more optimistic remarks of the chairman of the
committee, Dodd.
"We came out of the White House meeting with no agreement," Senator
Richard Shelby told reporters following the session.