The U.S. House rejected a $700 billion financial intervention bill today (Sept. 29) on a vote of 205 to 228.
The bill would have allowed the federal government to purchase troubled assets from financial institutions — $250 billion would have made available immediately.
It would have also provided for limits on executive compensation for companies participating in the program, work to assistance to homeowners facing foreclosure, and contained other features.
Congressional leaders on the House floor urged their fellow lawmakers to support the bill.
House Speaker Nancy Pelosi, R-Calf., blamed the Bush Administration for following an “anything goes” economic policy that led to the crisis.
“It has created chaos,” she said of the perceived hands-off policy approach, not job creation or invigorating the economy.
But Pelosi argued the bill was sending a message to Wall Street that the party was over.
House Minority Leader John Boehner, R-Ohio, opined that the American public was frightened by the financial service industry crisis.
Boehner argued that no one wanted to vote for the $700 billion intervention bill — he called it a “mud sandwich.”
“So we have an imperfect product,” he said, adding the bill was bipartisan.
“But we have an imperfect product that may work,” he said.
The Republican ranking member of the House Financial Services Committee arose on the House floor to call for support of the bill.
One local lawmaker who serves on the committee is Republican Congresswoman Michele Bachmann.
Bachmann on the House floor said she believed Democrats and Republicans are committed to finding a way out of this financial challenge.
“And we think we have one,” she said.
“But the answer, we believe, needn’t cost taxpayers $700 billion,” said Bachmann.
“The problem is there’s a lack of credit for credit-worthy people,” she explained.
Bachmann argued that federal accounting rules have contributed to the problems in the financial industry.
She called for reforms.
“Let’s try these tactical solutions before we pull the trigger on a $700 billion bailout that doesn’t even address the underlying problems,” she said.
“It’s time for rest. Time for a break. Let’s embrace a practical solution before we try a $700 billion bailout,” said Bachmann.
According to Bachmann’s office the congresswoman voted against the legislation.
Bachmann has been scheduled to appear at a forum tonight in Monticello.
The House did not close the rolls on the financial intervention bill vote until about 1 p.m. our time.