Ohio congressional members split on revised bailout

LaTourette said if the amendment is made, ‘we believe it will fly out of the House and pass.’

STAFF AND WIRE REPORT

At least one of Ohio’s congressional members is leaning toward switching positions in support of the $700 billion financial industry bailout.

Another pledged that he won’t allow any arm-twisting or begging by Wall Street to influence his position.

U.S. Rep. Steve LaTourette, R-14th, of Bainbridge Township, said Thursday the bill has improved since he and other lawmakers in the House helped kill it on Monday.

LaTourette leads a group of House Republicans that will try to amend the bailout bill approved by the Senate. LaTourette’s district includes seven northern townships in Trumbull County.

Also supporting the amendment is U.S. Rep. Phil English of Erie.

The group presented the amendment to the House Rules Committee, but it’s not known if House leaders will allow any amendments to the bill.

The amendment would immediately give Treasury Secretary Henry Paulson $250 billion to buy toxic mortgage assets. The administration would be required to report back to Congress by Nov. 17 on the status of the bailout, and then Congress would have up to 15 days to approve additional funding if needed.

Under the Senate proposal, Paulson immediately gets $250 billion and then installments of $100 billion and $350 billion. The last one may be “disapproved” by Congress. LaTourette said the president could easily veto any bill where Congress disapproves of additional funding for Paulson, and Congress would need 290 votes in the House and 67 votes in the Senate to override the veto.

LaTourette said Paulson has previously acknowledged he can’t spend more than $50 billion in a month, and a Treasury spokeswoman told Forbes last week that Treasury came up with the $700 billion figure because they wanted “a really large number.”

“We know people are outraged by the price tag of the bailout or rescue or whatever you want to call it. We could potentially save $450 billion for the taxpayers,” LaTourette said. “We know something must be done, but we think it can be done in a better way, and one that protects the taxpayers. This change doesn’t hamstring the Treasury Secretary at all.”

Several of the members opposed the bailout package in the House on Monday and are being pressured to change their votes so a measure can pass.

LaTourette said if the amendment is made in order by the Rules Committee, “we believe it will fly out of the House and pass.”

Rep. Bob Latta, also a Republican, voted against the bill Monday. Since then, he has received calls from business and financial institution leaders in the past few days who are worried about what will happen if the bill doesn’t pass.

But he said nine in 10 people contacting his office are against the idea. He said he won’t allow the reaction on Wall Street to influence him.

“It can’t,” said Latta, who represents northwest Ohio. “We’ve got to look at what’s good for this country.”

He hasn’t decided how he will vote but did say he wasn’t overwhelmed by changes made in the Senate.

“It’s still what’s in the bill that concerns me,” he said. “I have real problems with provisions that remain in the original bill.”

Republican Pat Tiberi, of central Ohio, had not yet decided whether he would change his “no” vote, said spokeswoman Breann Gonzalez.

Rep. Marcy Kaptur, an Ohio Democrat, said on ABC’s “Good Morning America,” that she plans to vote no.

“I will not support this legislation because it’s the wrong medicine,” she said. Kaptur argued that the problem should be solved by the market itself, not through governmental intervention.