Bush hails rescue plan, urges Congress to approve

29 September 2008 02:36  [Source: ICIS news]

WASHINGTON (ICIS news)--President George Bush voiced support on Sunday for the final $700bn (€476bn) financial markets bailout plan worked out by his advisors and legislators, saying he is confident that Congress will quickly approve the massive rescue plan.

 

Bush said the plan hammered out between Treasury Secretary Henry Paulson and Democrat and Republican leaders in Congress “sends a strong signal to markets around the world that the United States is serious about restoring confidence and stability to our financial system”.

 

The president said in a statement that he is “confident Congress will do what is best for our economy by approving this legislation promptly”.

 

The House of Representatives may vote on the bailout plan as early as Monday, although Senate consideration of the bill might not come until Wednesday.

 

The statement by Bush demonstrates that he is willing to sign the bailout package into law once Congress approves it.  However, his public endorsement of the rescue plan in advance of votes by the House and Senate also is meant to signal Republican members of Congress that he wants them to approve the controversial and costly proposal.

 

It was Republicans in Congress who on Thursday last week scuttled an earlier agreement on the bailout plan.  Those conservative Republicans had insisted that the legislation require more funding from Wall Street firms rather than taxpayers, an objective that the final bailout bill appears to meet.

 

In the House vote expected as early as Monday, a simple 218 majority of the 435-member chamber can approve the bailout bill.

 

However, a vote in the Senate is not thought likely before Wednesday, perhaps because the White House may need more time to ensure sufficient Republican support there.

 

In the US Senate, parliamentary procedure allows a minority of senators to block any given bill simply by refusing to end debate on the measure.  The tactic, known as a filibuster, essentially means that a bill is talked to death.  A "super majority" of 60 of the chamber's 100 senators is required for “cloture”, to end discussion and proceed to a vote on the measure.

 

Bush further indicated his desire that congressional Republicans support the bailout bill, saying the measure “is urgently needed to address a crisis in our financial system that threatens the entire US economy”.

 

Failure to act, Bush warned Congress, would risk “a system-wide breakdown” in which “the costs to the American economy would be disastrous”.

 

($1 = €0.68)

 

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By: Joe Kamalick
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