McCain injected Presidential politics in Bail-Out Deal...!

A renegade bloc of Republicans moved to reshape a massive bailout of the U.S. financial system Thursday, surprising and angering Bush administration and congressional leaders who hours earlier announced agreement on the "fundamentals" of a deal.

At the White House meeting that included President Bush, top lawmakers and both presidential candidates, House Minority Leader John A. Boehner (R-Ohio) floated a new plan for addressing the crisis that has hobbled global markets.

Democrats accused Boehner of acting on behalf of Republican presidential candidate Sen. John McCain (Arizona) in trying to disrupt a developing consensus. The new proposal also displeased White House officials, including Treasury Secretary Henry M. Paulson, Jr., who chased after Democrats leaving the meeting and - half-jokingly - dropped to one knee and pleaded with them not to "blow up" the $700 billion deal, according to people present at the meeting.

Under the alternative Republican plan, the government would set up an expanded insurance system, financed by the banks, that would rescue individual home mortgages. The government would not have to buy up the toxic mortgage-backed assets that are weighing down financial institutions.

The apparent breakdown Thursday followed a lunchtime declaration by Republicans and Democrats in the Senate Banking and the House Financial Services committees that they had come to a general accord on many outstanding issues. During a nearly three-hour meeting, lawmakers reached an "agreement on principles."

Under that agreement, the package would be broken into three parts. Paulson would receive $250 billion immediately and $100 billion more upon certification that the funds are necessary. The final $350 billion could be dispersed without additional congressional approval, but Congress would be given 30 days to object.

The agreement calls for strong oversight of the bailout program, including an independent Inspector General and regular audits by the Government Accountability Office (GAO). It also would require the Treasury to set standards to ban "inappropriate or excessive" compensation for executives at participating firms and establish stronger protections for taxpayers, including a requirement that they receive equity in all participating companies. The latter provision ensures that the Treasury could recover the cash it invests in bad assets if the firms return to financial health.

"We've reached fundamental agreement on a set of principles," said Sen. Christopher J. Dodd (C-Connecticut), chairman of the Senate Banking Committee, adding that a bill could pass within days.

Less than 30 minutes later, however, Rep. Spencer Bachus (R-Alabama), who had attended the meeting on behalf of House Republicans, denied that an agreement had been reached. While progress was made on peripheral issues, Bachus said, House Republicans remained adamantly opposed to the central point of the plan: purchasing bad assets from struggling firms.

Bachus said, "John's not trying to call the shots for the House caucus, I can tell you that. He's just opposed to the plan in its present form."

Frank reacted angrily to Bachus' remarks, saying lawmakers had been well on their way toward a bill they could put to a vote and accusing McCain of engineering a breakdown. "This is the presidential campaign of John McCain undermining what Hank Paulson tells us is essential for the country," he said.

Frank was in a fury as he and other Democrats departed for the late afternoon meeting at the White House, a remarkable event given Bush's efforts to stay out of the presidential campaign.

Despite expectations that a deal was near, Boehner took off in a different direction during the meeting, saying the bailout plan was not gaining traction among rank-and-file House Republicans.

As Obama and Frank peppered Boehner with questions about the new proposal, Bush rejected the idea as a too-broad rewrite of his administration's plan, according to the handwritten notes of one Democrat present.

"Don't start over," said Bush. "Don't start over."

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[Gretchen570]

If this isn't making it obvious that we need to vote for a third party , what more evidence do you need?

I am not voting for either McCain or Obama.

Especially after this.

Chuck Baldwin is looking pretty good.

[pharmdmsn]

It's hurting you so much, you poor conservatives! You can't swallow the fact that John McCain is a disaster and unelectable! You sinking and drawning conservatives clutching at a straw! Accept change and realize that the only remaining hope for this country to relive its ideals is electing Barack Obama. Die-hard racists, stop grabbing onto straws like Chuck Baldwin and Ralph Nader when a lifeline Obama boat is nearby and beckoning at you! Accept Change or this will be the end of a great country!

[dixxta]

esse foi o pior video da minha vida (life) me desculpe (sorry) eu odiei (ruim pessimo orror)

[hiriumi]

This was a pretty big bet for McCain hoping that it was going to pass, but it failed. He is out of luck. The fact is that majority of Republicans voted for nay. So much for the leadership.

[HalcyonRain321]

LOL

Did you make that up?

[pig5689]

During the question and answer session at one of his beloved town hall meetings in front of a crowd of about a hundred people an elderly upset woman stood up, grabbed the microphone and proceeded to yell at McCain about the war in Iraq, the trashed economy thanks to greedy Republican pigs, his ignorant flip-flopping, and the shameful lies he's been vomiting out over the last few months. McCain stared at her blankly for a few seconds and then said, the surge is working.

[davidchenard]

This is not about Republicans and Democrats. They both promise to stop the other's bullshit, then continue it when it is their turn. Don't play into their strategy of divide and conquer. The problem was caused by the international bankers who own the FED who also happen to own the banks being bailed out. This is no accident. Paulson caused the problem under orders. Now he is providing the "solution" which happens to require our being robbed blind. We are witnessing a coup. We are under attack.

[conniesnyder]

Hey Harry~don't look now, but the Republicans will say THEY are the ones who have reservations about the bail out (which THEIR policies CAUSED...deregulation and lack of oversight on the Bush watch)and McCain will claim credit while he sabotaged the bill every step of the way. Despicable man.

[Yourdeadmeat69]

If bailout doesn't happen, banks are frozen for big store and corner store, small as well as big business is being tossed in the crapper--they can't get quarterly cash flow from the bank to pay operating costs.

Little guys ARE screwed TWICE, but we if don't free up the system, Chinese & Europe SAID they're not going investing in our paper anymore.

Hang bastids, & stop rewarding execs for failing the country, but 1st its defibrilate the dead economy, or it IS the little guy fookayed.