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State Delegation Divided on Bailout Plan

By Jim Myers

September 20, 2008

WASHINGTON - Reactions from Oklahoma's congressional delegation were far from unanimous Friday to a dramatic proposal to put hundreds of billions of dollars on the line to rescue the nation's financial system.

Several of the lawmakers clearly concluded the risk for the average American was just too great not to get behind the Bush administration's plan.

Others, however, declined to express anything resembling an endorsement at this time.

Republican Rep. Frank Lucas, usually a staunch supporter of limiting such exposure for American taxpayers, came away from a telephone briefing with Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke convinced bold action was needed to keep the nation and even the world's financial systems from sliding further toward collapse.

Lucas, who serves on the House Financial Services Committee, cited the tone of voice used in describing the financial situation the nation faces.

He recalled living through the agriculture, oil and real estate busts in Oklahoma in the 1980s.

"I am not going to be a part of allowing that to happen on my watch,'' he said, conceding that some of his own constituents will have problems accepting so much government intervention in the economy.

Lucas expressed hope that at least some of the billions of dollars linked to the plan could be repaid as the markets rebound with perhaps even a profit possible.

Still, he said Paulson and Bernanke have done exactly what needs to be done in such extraordinary times.

Republican Rep. John Sullivan said the financial turmoil facing the country is for the most part unprecedented.

"Putting hundreds of billions of dollars of taxpayer and borrowed money on the line in the form of bailouts should be an option of last resort,'' Sullivan said.

"However, given the seriousness of the situation I do believe that government intervention in the form of a comprehensive approach is necessary to protect the pensions, homes and investments Americans count on for financial security.''

Democratic Rep. Dan Boren expressed confidence in Paulson and Bernanke as well as the key leaders in Congress who will help steer the legislative effort.

"I think it is very severe,'' Boren said of the economic crisis. "I don't think we have seen the worst.''

He called the plan a loan rather than a bailout and also suggested the government could end up making a profit.

Republican Rep. Mary Fallin said the crisis could affect every American family.

"It is important that we take action immediately to protect American citizens' investments, home values, bank accounts and retirement funds, and to provide security for main street businesses while minimizing the affect on taxpayers,'' Fallin said.

Republican Sen. Jim Inhofe described the financial situation as a once-in-a-lifetime correction.

"This is a very difficult time,'' Inhofe said.

"I am extremely concerned that the recent events on Wall Street will begin to affect ordinary Americans' ability to borrow for homes and college and the ability of small businesses to finance the much-needed investment we need to get this economy going again.''

Still, Inhofe did not express support for the plan the administration is expected to roll out in the coming days.

Republican Sen. Tom Coburn said the financial crisis requires sacrifice and statesmanship in Congress, but he also did not offer comments of support for the plan.

Instead, a statement from the vocal earmark critic included a call for lawmakers to put their pet projects on the chopping block.

"Congress has known about these problems for years, but we did nothing because we were so obsessed with short-term politics and earmarking to do the hard work of oversight and reform that was necessary to avert this mess,'' Coburn said.

Republican Rep. Tom Cole, part of the House leadership as chairman of the National Republican Congressional Committee, expressed concern about the impact the crisis could have on families.

"But I am also concerned about asking the taxpayers to once again take responsibility for the greed and irresponsibility of Wall Street,'' Cole said.

"I am reserving judgment until I see the details of what has been proposed but it is clear to me that swift action needs to be taken to make sure the hemorrhaging of our financial foundation ends.''

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