La. delegation wary of bailout

• By GERARD SHIELDS
• Advocate Washington bureau
• Published: Sep 24, 2008 - Page: 4A - UPDATED: 12:05 a.m.

• Print
• Email
• Save
• Reprints
• Twitter
• Share

• Del.icio.us
• Digg
• Facebook
• Reddit
• 

WASHINGTON — Louisiana congressional delegation members are cool to the proposed $700 billion federal bailout of the faltering financial system.

With an election recess on the horizon at the end of the week, congressional leaders are trying to craft a bill considered the biggest financial intervention in the private market since the Great Depression.

Delegation members said they are hearing objections to the move from their constituents.

“I don’t think our taxpayers should be on the hook for bad decisions made by Wall Street speculators,” said U.S. Rep. Steve Scalise, R-Metairie.

Others say the pressure of a full economic collapse will weigh on members as the legislation reaches the House and Senate floors.

“It has caused not just a national crisis but a global crisis,” said U.S. Rep. Charles “Charlie” Melancon, D-Napoleonville.

Some delegation members say they could support the bill, but with caveats. U.S. Rep. Rodney Alexander, R-Quitman, said he backs a recommendation that a congressional oversight board be created to monitor the companies.

“There are a lot of questions that need to be answered before I’m comfortable with it,” said Alexander, a member of the House Appropriations Committee.

U.S. Sen. Mary Landrieu, D-La., said the aid may be necessary to keep the economy afloat. But, she said, she supports a proposal to return any borrowed money to taxpayers once the companies return to soundness.

“It’s clear to me that bold federal action is necessary to keep our markets liquid,” said Landrieu, who sits on the Senate Appropriations Committee. “But I want the taxpayers to have a fighting chance to recover and be well compensated for their risk.”

U.S. Sen. David Vitter, R-La., spent Tuesday trying to get more details about the plan, he said.

“I need to be concerned that this is about protecting average Americans and not Wall Street CEOs,” Vitter said. “I’m concerned about a massive intervention. A lot of folks have the same concerns I do.”

U.S. Rep. Don Cazayoux, D-Baton Rouge, said he believes the circumstances show that Congress needs to be more watchful of Wall Street.