Virginia delegation splits on bill

By Neil H. Simon, Media General News Service
Published: September 29, 2008

WASHINGTON — Five Virginia House Republicans and one Democrat Monday voted against the $700 billion financial bailout measure.

The five Virginia Republicans voting “no” were Reps. J. Randy Forbes, Thelma Drake, Virgil Goode, Bob Goodlatte and Rob Wittman.

The Democrat was Rep. Robert C. Scott, 3rd, who said it was “a bad deal for the American people.”

Three Virginia House Republicans and two Democrats voted for the bailout.

The bill failed 205 to 228. It would have authorized the federal government to buy a host of bad, mortgage-backed assets from Wall Street firms. The bill included an insurance plan called for by Rep. Eric I. Cantor, R-7th, which would have allowed the government to insure some of the assets to be sold in the private sector.

Goodlatte, R-6th, said he voted against the bailout because “it takes $700 billion of taxpayers’ hard-earned money and hands it over to the very companies that made the bad decisions which led us into this mess in the first place. I have consulted with many economic experts, bankers, as well as small and large businesses, workers and citizens of the 6th District to come to this decision.” 

Scott raised concerns that the government would overpay for assets that are essentially worthless. “Overpaying everyone is an ineffective way” to help failing companies, he said.

Moments after the vote, Cantor walked off the House floor and vowed to return to the drawing board. The House is adjourned through the Jewish holiday of Rosh Hashanah and will return Thursday.

“I’m very disappointed,” Cantor said in an interview after the bill failed. He blamed House Speaker Nancy Pelosi for failing to include more measures to “protect the taxpayers even more.”

Speaking to TV cameras, Cantor held up a copy of a speech Pelosi delivered and said her partisan tone cost the bill Republican support.

“Because somebody hurt their feelings, they decided to punish the country,” said Rep. Barney Frank, D-Mass., chairman of the House Financial Services committee, at a news conference with Democratic leaders.

The vote needed a dozen more votes to pass. “Give me the 12 people’s names,” Frank said, “I will talk uncharacteristically nice to them.”

Roughly two-thirds of Republicans voted ‘no’ on the bill after House Republican leaders said Sunday they would allow members to vote their conscience.

Rep. Tom Davis III, R-11th, said that behind closed doors, though, leaders were much more aggressive in pushing members to support the bill. Davis voted for it.

“What alternative do you have at this point?” Davis said, comparing the economic crisis to an impending hurricane and voting “no” to standing in the storm’s way. It was a theme several Republicans used to justify a “yes” vote.

“If you don’t vote for this ... and credit dries up, there will be no question who to blame,” Davis said.

Constituent calls were running 10 to 1 against the plan, according to a spokesperson for Rep. Rob Wittman, R-1st.

Members of Congress faced a tough vote with that groundswell, said political scientist Paul Freedman of the University of Virginia.

“If you’re a Republican, the only thing worse than voting ‘yes’ on this is conceivably voting ‘no,’” Freedman said.

Wittman said he voted against spending $700 billion to assume Wall Street’s bad debts, because it would also create “a massive new bureaucracy with no guarantee of success.”

On the House floor, Rep. Jim Moran, D-8th, called on lawmakers to support the bailout and its market regulations to restore confidence immediately in the markets, loosen up U.S. lending and create jobs.

“Greed is the accelerator in a capitalist economy,” he said, “but unless we are willing to tap the regulatory breaks once in a while, the economy is going to crash.” Moran said.

Markets tumbled dramatically on news of Congress’ failure to pass the plan. The Dow Jones Industrial Average suffered its largest one-day point drop, nearly 778 points.

Rep. Virgil Goode, R-5th, a “no” vote, said the bailout “will not save America.”

“We need to infuse capital into our financial system and not more federal debt,” Goode said.

Rep. Rick Boucher, D-9th voted “yes,” saying the bill would “restore confidence in our credit markets.”

This bill would have benefited “businesses small and large and consumer borrowing for cars and homes,” Boucher said.

Rep. J. Randy Forbes, R-4th, also a “no” vote, said Sunday he supported delaying action on the bill, saying there was no rush to do something that may not work to correct the flagging economy.