13 months ago
SACRAMENTO, CA - Northern California congressional leaders largely reacted with disappointment to the House defeat of a $700 billion bailout package designed to bolster the struggling credit market.
Click on the video link to hear their reactions.
The measure was defeated by a vote of 228 to 205, with more than two-thirds of Republicans and 40 percent of Democrats voting against it. (See the total roll call vote here.)
Most congressional leaders in the Sacramento and Central Valley region voted in favor of the bill, however, John Doolittle, R-Roseville, voted against it.
"I opposed this bailout today because I was never convinced that simply spending $700 billion would solve the underlying problem," said Doolittle, who instead is proposing alternatives that include injecting private capital in the market through changes in the tax code.
Congressman Dan Lungren, R-Gold River, expressed disappointment over the plan's defeat.
"I just felt we had to do it, and I'm very, very disappointed that we lost this today," said Lungren.
Lungren added that the bipartisan effort failed to get enough votes from both sides of the aisle and that further negotiations will be needed later in the week after Congress observes Rosh Hashanah, commonly referred to as the Jewish New Year.
"I just hope we can get something that was as good as this was today, which was imperfect, but it had a lot of taxpayer protections," said Lungren.
Doris Matsui, D-Sacramento, also supported the bailout plan, stating that it would have taken responsible steps toward solving the financial crisis.
Matsui expressed hope that the House will pass a comprehensive and responsible relief package.
"We must protect people's jobs. We cannot stand by and watch as businesses are forced to cut back operations. We have to preserve people's retirement accounts, their ability to access credit to buy a home, to open a small business or take out a loan to send their children to college," said Matsui.
Jerry McNerney, D-Pleasanton, also supported the plan stating it was the only plan available to stabilize the economy.
"Although far from perfect, the plan ahd many provisions which I felt justified its passage, including: protection of American taxpayers, assistance for families facing the prospect of foreclosure, and limits on executive pay," said McNerney.
Dennis Cardoza, D-Merced, voted in favor of the bill and stated that he would be part of the effort to try to resurrect the bail out.
"It is absolutely imperative that we calm the markets to provide liquidity in the situation so that banks can do business with each other, so small businesses can be lent to, and so we can try to lessen the impact on the economy," said Cardoza.
Wally Herger, R-Chico, also voted in favor of the bail out plan and was surprised by its failure.
"We're concerned about what can potentially happen to our local banks and our ability to be able to borrow money and make payrolls for small businesses and farmers in Northern California and the nation," said Herger.
George Radanovich, R-Mariposa, said that he supported the bill because he felt it was necessary for our economy.
"This is not just a Wall Street issue. If it were, I wouldn't mind letting them stew. This will affect every American, I'm convinced of that," said Radanovich.
In addition to Dootlittle, Congressman Mike Thompson, D- Napa, whose district covers parts of Napa and Sonoma counties, also voted against the legislation.
News10/KXTV
