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North Dakota senators split on bailout vote |
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Thursday, 02 October 2008 |
WASHINGTON (AP) - Sen. Byron Dorgan voted against a $700 billion financial industry bailout bill Wednesday, while Sen. Kent Conrad supported it.
The two North Dakota Democrats rarely split their votes. But the bailout legislation has prompted mixed reaction and strong emotion among members of Congress grappling with how to handle the rapid financial meltdown in recent weeks.
Dorgan, one of the few members of the Senate to oppose deregulation of the banking industry nine years ago, says he does not believe the bill will do enough to regulate financial markets, especially hedge funds and derivatives trading.
"I will not vote for a plan that I believe fails to address the central cause of this crisis — unregulated financial markets that hide the unbelievable speculation and reckless investments by some major financial institutions whose losses are now being loaded on the backs of the American taxpayers," Dorgan said.
He said he tried to convince Connecticut Sen. Christopher Dodd, the chairman of the Senate Banking Committee, to add provisions for more but he was not successful.
"In the end, if this plan is about restoring confidence, the failure to include reform and regulatory measures along with the money is a fatal flaw that I believe will end up hurting our country," Dorgan said.
Conrad, who chairs the Senate Budget Committee and is one of the lead negotiators on the bill, says Congress has to contain the problem to prevent a downward spiral. He said he is most worried about a tightening credit squeeze that could affect small businesses in North Dakota and elsewhere.
The Senate passed the bailout late Wednesday after the House rejected a similar bill Monday. North Dakota's only House member, Democrat Earl Pomeroy, supported it, saying congressional action was crucial to stem the financial crisis. Another House vote is expected Friday.
Senate leaders agreed to add tax breaks for businesses and the middle class and increase deposit insurance in an attempt to revive the legislation after the failed House vote. Conrad was one of the members in charge of negotiating those changes.
He said the stakes are very high.
"This is perhaps the most consequential negotiation I have ever been a part of," Conrad said. "These are real events with real consequences and they aren't just consequences for the boys on Wall Street."
Also Wednesday, Conrad called on U.S. Attorney General Michael B. Mukasey to open a criminal investigation into the failed financial institutions that helped trigger the rapid economic downturn.
"We need to take a long hard look at how our financial system spiraled downward so far so fast," Conrad said. "People need to be held accountable."
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Last Updated ( Tuesday, 07 October 2008 )
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