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Inhofe Says Plan Drawn in Haste

By Jim Myers

September 24, 2008

WASHINGTON — U.S. Sen. Jim Inhofe said Tuesday that he is opposed to the Bush administration's historic plan for a huge government bailout of the nation's private financial sector.

"It is a crisis,'' the Oklahoma Republican said. "I certainly don't want to play that down.''

Inhofe said his opposition is based on the size of the $700 billion rescue plan, the speed with which Congress is being asked to approve it and, perhaps most importantly, the unanswered questions swirling around the proposal.

"Anytime someone is in such a desperate hurry to get something done, I am always a little reluctant to be in the same hurry. It usually turns out that it is not a good idea,'' he said.

Inhofe came to his conclusion after hearing again from Treasury Secretary Henry Paulson, the administration's main salesman for the plan.

He said Paulson, who could not answer certain questions during a conference call with senators Friday, still had no responses to many of the same questions Tuesday.

"There isn't one thing that he offered today in terms of having answers that he didn't have four days ago,'' Inhofe said. "That got my concern a little bit.''

His concerns focus on the amount of power given to officials to purchase questionable assets from private firms; the lack of definition of which assets would be eligible; and the appointment of possibly thousands of asset managers for the program.

Inhofe said those asset managers could end up being the same people who helped create the crisis. He also warned that cronyism could creep into the system.

Conceding that they are asking much from Congress, Paulson and others pushing the plan warn that to do nothing would be even riskier than using taxpayer dollars to bail out financial institutions.

"I am not sure I am saying we want to do nothing,'' Inhofe said. "I am looking for other alternatives.''

Without endorsing it, he cited a proposal from Republican presidential nominee John McCain as one option that should be reviewed.

Paulson's efforts so far have drawn a mixed reception from the Oklahoma delegation. Their reactions range from support to a wait-and-see approach to outright opposition.

Inhofe said his offices have received a large number of calls from Oklahomans whose opinions range from opposition to concern.

Rep. Frank Lucas, R-Okla., a member of the House Financial Services Committee, issued a statement Tuesday recalling his efforts to lower taxes, protect taxpayers' money and limit federal-government intrusion in private markets.

"However, I believe that these are exceptional times,'' Lucas said. "The details of this bill have yet to be finalized.''

He expressed hope for a bipartisan approach to create a "clean, straightforward bill that will correct the woes on Wall Street before they spread to Main Street, Oklahoma, while protecting the purse strings of the American taxpayer."

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