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Area lawmakers not unanimous on bailout vote
WASHINGTON -- The Big Country delegation is often in sync when it comes to voting in the House, but the three Republicans went their own ways on a bailout package that also extends the wind energy production tax credit.
They reached common ground again in their continuing worries about the economy despite the $700 billion rescue plan the House approved 263-171 Friday.
U.S. Rep. Randy Neugebauer of Lubbock expects more turbulence in the economy.
"There's no doubt that this angst in the credit markets and stuff is going to create some short-term economic bumps in our economy," he said.
Neugebauer stuck to his no vote Friday on the rescue plan designed to stave off economic collapse. He said he was surprised U.S. Rep. Mac Thornberry of Clarendon and U.S. Rep. Mike Conaway of Midland reversed their votes Friday to help the package pass.
The Senate approved a revised bailout Wednesday, and President Bush signed the bill on Friday. The proposal will use the money to buy up soured securities backed by mortgages, relieving financial institutions of bad assets.
Neugebauer said he never saw "compelling evidence" the bailout package was the cure for what ails credit markets.
And he's alarmed because people on Wall Street and others advise him the economic rescue plan the House approved today is not enough to fix the problem.
"We don't want this to be the first installment," Neugebauer, a member of the House Financial Services Committee, said Friday.
The program needs congressional oversight and evaluation as it kicks off, the 19th Congressional District representative said.
"And if it's not working, we sure don't' want to get $700 billion into the program and then decide maybe we need a different program," Neugebauer said.
Neugebauer said the legislation has some beneficial items such as an increase from $100,000 to $250,000 of Federal Deposit Insurance Corp. coverage for customer deposits. Tax provisions such as the extension of the wind energy production tax credit for a year are also good.
"I know that people in the industry are going to be relieved that it did in fact finally did become law," Neugebauer said.
Wind industry advocates contend the credit is vital to expansion of the alternate energy source.
After the bill failed Monday in the House, party leaders attached tax legislation as a sweetener and sent it back to Congress.
Calls from Bush and Treasury Secretary Henry Paulson on Monday didn't persuade Neugebauer to vote for the rescue plan the first time. Calls Thursday from a former secretary of commerce and a former FDIC chairman didn't do the trick for the revised package.
U.S. Rep. Mike Conaway had one eye on the gyrations of the stock market and the other on revisions that made the rescue package more appealing.
The decision to reverse his vote was tough because he doesn't believe massive government intervention is the answer to the woes on Wall Street, he said in a statement Friday.
"However, I know that we must act quickly to restore investor and lender confidence and return our great nation to the most thriving economy in the world," Conaway said.
Increased FDIC insurance will calm customers' fears about the safety of their money in banks, Conaway of the 11th Congressional District said.
"Above all else, I voted for this plan because I believe the threats to our economy are real and grave," Conaway said.
The financial crisis will hit everyone if Congress takes no action, he said.
Conaway received frequent vote-wooing calls from President Bush this week.
The three Republicans must soon account for their votes on the bailout package to constituents back in the days leading up to the election.
Thornberry, of the 13th Congressional District, expects many will be unhappy that he reversed his vote, and many others would have been unhappy if he hadn't.
"So you can't cast a vote based on a poll," he said today. "You just have to use your best judgment to figure out what's right."
Thornberry also liked the modified bailout's FDIC coverage increase.
More money will flow into banks, raising more capital because depositors have more confidence in insured accounts, he said.
Changes in accounting rules allowed in the legislation mean banks won't have to take big write-downs on their soured mortgage assets. The Securities and Exchange Commission already took steps this week to clarify the accounting rules.
Thornberry said these changes prevent the entire burden for the bailout from resting with taxpayers. Private capital will help shore up financial institutions.
He also was afraid if the leadership had to float a new bailout bill, House Speaker Nancy Pelosi, a Democrat, would stud it with undesirable measures to attract Democrats' votes.
"This was as good as it was going to get from my perspective," Thornberry said.
The bill goes against his philosophy of less government and less government regulation, one reason his decision was hard.
"But I also believe that we are in a severe economic crisis, especially in the credit markets, and we were not going to be able to get out of it without some sort of government action," he said.
Washington regional correspondent Trish Choate can be reached at (202) 408-2709 or choatet@shns.com.



Posted by Steppenwolfe on October 4, 2008 at 5:29 p.m. (Suggest removal)
Actually it good to see that our representatives considered the issue very seriously and made their own decisions with pointing fingers and making negative accusations with those who came to opposing conclusions.
I for one am not happy with the circumstances or the “rescue plan” but like most Americans I do not have enough information to make an informed decision.
What would have been the potential consequences if the “rescue plan” had been rejected? I doubt if the consequences would have as harsh for Texas as for, let me say New York or California.
What financial and economic troubles do we still face?
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