Boston Herald
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House rejects financial bailout bill
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(0) RateThe U.S. House today rejected an historic $700 billion bailout of Wall Street despite legislative leaders’ appeals to rank-and-file members that the bill was needed to save the U.S. economy from possible catastrophe.
The Dow immediately plunged as investors watched the dramatic House vote on television, but recovered a bit after the stunning developments.
After more than three hours of debate, the legislation was rejected by a 228-205 final vote.
Democrats provided the bulk of the votes for the bill, but Republicans reportedly couldn’t round up enough votes from their side.
“We must protect Main Street,” said U.S. Rep. Ed Markey (D-Malden), echoing the sentiments of others who said they disliked having to pass the bill but felt they had no choice to vote for it to avert economic disaster.
U.S. Rep. Barney Frank (D-Newton), a key negotiator as chairman of the House Financial Services Committee, appealed to fellow liberals to vote for the package, despite reservations that it doens’t do enough for the poor.
The poor will “get nothing” if no compromise package was approved, said Frank, insisting Democrats did everything they could to protect taxpapyers and lower-income people in the bill.
Leading Republicans, who faced a mini-revolt within their ranks over the wisdom of the federal government interfering in the markets, also appealed for bi-partisan votes.
“The American people are angry,” acknowledged U.S. Rep. John Boehner (R-Ohio).
But the “imperfect” bill - which authorized the Treasury to buy up billions of dollars in bad subprime-mortgage debt from reeling Wall Street firms - was better than not acting at all and risking a financial-system meltdown, said Boehner.
Rejection of the bill came only a day after the White House and congressional leaders reached a dramatic, tentative agreement after days of grueling negotiations.
Earlier today, President George Bush kept the pressure on lawmakers to pass the bill, which he said was needed to keep the nation’s financial system from seizing up and harming the economy as a whole.
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