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GOP promises to deliver bailout vote
2008-10-03
Four days after it failed dramatically, Treasury's $700 billion financial rescue plan was back before the House Friday morning, riding a wave of turmoil in the markets and renewed determination by leaders in both parties to see it over the top. Democrats and Republicans alike will try to grow their vote since Monday's defeat, but the Republicans are most at the center of the storm given the pressure from the Bush Administration and business community for action. Senate Republicans, behind Minority Leader Mitch McConnell (R-Ky.) set the tone Wednesday night, voting by a better than 2-1 margin in favor of the package after revisions were made adding popular tax cuts and expanded federal insurance for deposits at banks. Given the conservative, often populist rhetoric against what critics describe as a “Wall Street bailout," no one expects to find the same level of support in the House. But coming into Friday morning, leaders were confident they could close the gap and switch at least 12 votes—the margin of defeat Monday. Republicans appear sure they can produce 76 votes –a gain of 11—and would like to see that grow to at least 80. Democrats feel they will be north of the 140 votes they had Monday, meaning that a 218 majority is within reach. But the result is still a closely fought, ticklish political landscape in which any backsliding and distrust can cause problems. Both Minority Leader John Boehner (R-Ohio) and the party whip, Rep. Roy Blunt (R-Mo.) could be fatally hurt by another defeat. At the same time Democrats were stung themselves by Monday's loss and are working harder together with Barack Obama, the party's presidential nominee, who is making calls to individual lawmakers to shore up support. In a call to Maryland Rep. Elijah Cummings on Tuesday, for example. Obama spoke of how President Obama could revisit bankruptcy laws to give judges more leeway to restructure residential mortgage payments when threatened with foreclosure. Obama didn't need to lay out a quid pro quo because the message was clear. And Cummings, a no vote Monday, told Obama he was “open" to changing his vote but wasn't there yet. "I have to look beyond [the bailout] to a rainbow called Obama," he said. "When you bring in the Obama factor, that's very very important." Thursday brought another round of public – and private – reversals, with Georgia Rep. John Lewis, a prominent member of the Congressional Black Caucus, telling colleagues at a closed-door meeting that he would support the bailout plan, according to people present – Lewis wouldn't confirm as he left the meeting, but said, “Just watch the board." Republicans, from retiring Minnesota Rep. Jim Ramstad to Tennessee Rep. Zach Wamp, and Democrats, from Nevada Rep. Shelley Berkley to Missouri Rep. Emanuel Cleaver, all declared on Thursday they would support the current bill, according to various news sources. “We're still looking at it," said Rep. Pete Hoekstra, another lawmaker rethinking his vote. The Michigan Republican is more attracted to the Senate package than the initial bill because it would raise the amount of money the Federal Deposit Insurance Corp. insures, from $100,000 to $250,000. Hoekstra told Vice President Dick Cheney on Monday to make that change and is pleased to see it has been included. Hoekstra is also more open to the bailout package now that SEC Chairman Chris Cox agreed to give companies more leeway in pricing their assets under mark-to-marketing accounting rules. But he is upset about “all the pork in the bill," referring to a number of tax extensions in the legislation tailored to specific industries, like a break for wooden arrows that has been mocked by watchdog groups sifting through the 450-page Senate version of the bill. Time is increasingly important. With the Dow Jones Industrial Average dropping another 348 points on Thursday, one GOP aide suggested, the House either passes the bill this week or it never gets done. With Lewis and Cleaver changing their votes and others, like Cummings, now on the fence, Democrats and Republicans alike were predicting significant movement from the Congressional Black Caucus. One member pointed to Reps. G.K. Butterfield of North Carolina, Jesse Jackson, Jr. of Illinois and David Scott of Georgia. Scott has been working with Financial Services Chairman Barney Frank (D-Mass.) and other leaders to address the CBC concerns. A big question mark still are the votes of Democratic budget hawks in the Blue Dog Caucus, who are “uniformly upset" with the Senate for adding tax breaks that will add more than $100 billion to next year's deficit. So far, none of the Blue Dogs have changed from "yes" to "no." Emerging from a meeting with a Blue Dogs on Thursday afternoon, Majority Leader Steny H. Hoyer (D-Md.) said, “Nobody (in the room) announced they were going to be opposed." Tennessee Rep. John Tanner said, “The Blue Dogs are uniformly upset about what the Senate did without paying for extensions." Others leaving the session backed up his claim, but most of them acknowledge that they don't have a choice but to accept the new package. “We don't have any alternative," Tennessee Rep. Jim Cooper said after emerging from a meeting with the Blue Dogs. “What choice to do we have?" Cooper suggested the Thursday was “part of the therapy" after the Senate added more than $100 billion to the deficit. “You have to vent." But not too long. GOP leadership staff petitioned Democrats on Thursday to limit debate on the bill to an hour after allowing lawmakers three hours to debate the plan on Monday. This is an extraordinary turnabout for House Republicans, who have bitterly complained in the past that Democrats aren't allowing open debate and a fair amendment process. On the bailout, Republicans would rather just line up their people and have a quick vote, it seems, rather than letting the debate get out of control again. Opponents don't have the momentum, but they are still making a strong case in the waning hours. Many offered alternatives, including Ohio Rep. Steven C. LaTourette who wants to reduce the total cost of the measure by $450 billion to $250 billion. Even here, many expect that LaTourette will finally vote for the bill having made his last protest. Glenn Thrush, Daniel W. Reilly, John Bresnahan and Ryan Grim contributed to this story.
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