Where They Stood on the Rescue Plan
Syracuse Post-Standard
Mike McAndrew
September 30th, 2008
http://www.syracuse.com/politics/index.ssf/2008/09/where_they_stood_on_the_rescue.html
Three Central New York congressmen who voted for a $700 billion taxpayer bailout of Wall Street investment banks predicted Americans living off retirement accounts or saving for their children's college education will suffer because of the bailout's rejection.
"Without action, the crisis affecting our nation's credit markets could impact every family and every business, from the ability to obtain credit to job security to the solvency of retirement investments," said Rep. James Walsh, R-Onondaga.
But four of the five candidates who hope to seize the representatives' jobs said they would have voted against the bailout bill.
"Businesses open and close every day in this country. Businesses should be allowed to fail," said Dale Sweetland, a Republican running to succeed the retiring Walsh.
As the stock market tumbled, the distance between Central New York and Washington -- or the elected and the hopefuls -- seemed farther than usual.
Here's what they were saying:
23rd District:
Rep. John McHugh, R-Pierrepont Manor, said he voted for the bill because it would bring stability to the financial markets.
"It was the only proposal that held even a remote possibility of being passed by both houses," said McHugh, whose district includes Madison and Oswego counties. "My colleagues who voted no, they held out for the perfect instead of the possible. You rarely get a chance to vote on the perfect.
"To those running for office for any party, I'd ask, 'What's your plan?'" McHugh said.
Democrat Michael Oot, a Madison County lawyer, said he would probably have voted for the bill despite some concerns.
"The lead-up to this vote and the presentation by the administration bore a remarkable similarity to the positions and statements they made about the need for going to war in Iraq," Oot said. "You have to wonder whether or not the crisis is genuine."
25th District:
Walsh said the bailout bill provided significant protections for taxpayers.
"It created a federal insurance program to force Wall Street to share the burden. It allowed for the investment of up to $700 billion of taxpayer money as needed in stages, and Americans would have seen a return on that investment. It ensured taxpayers will be first in line to recoup any losses and eliminated golden parachutes and severance pay (for CEOs) from participating financial institutions," Walsh said.
All three candidates running to succeed Walsh, whose district includes Onondaga County and part of Cayuga County, said they would have voted against the package.
Sweetland and Democrat Dan Maffei said last week they could support spending billions of tax dollars to bail out investment banks provided there were strings attached to protect taxpayers.
Monday, they said they did not like the strings the House was considering.
Congress should insist that the bailout package allows owners of single-family homes struggling with mortgages to renegotiate the loans under a judge's supervision, Maffei said.
He said the bill should have included a $100 billion infrastructure fund to pump money into the economy and help American workers.
Sweetland said, "I'm not sure I know what needs to be done, but something does need to be done."
"Some kind of government intervention needs to go on to protect homeowners, pension funds, 401ks, and to prop up the economy so credit is available for businesses and those businesses don't start laying people off," he said.
But he said the bailout bill would have cost too much and given the treasury secretary too much power without congressional oversight.
Green Populist candidate Howie Hawkins attended a protest against the bailout Monday outside the James M. Hanley Federal Building in Syracuse.
He said he'd rather see Congress use tax dollars to aid homeowners defaulting on mortgages than help the banks that issued or bought the mortgages.
24th District
Rep. Michael Arcuri, D-Utica, said he voted for the bill because "the cost of doing nothing is too great for the American people, our nation's financial industry and New York to bear."
"The bill I supported today strengthens regulations and oversight, ensures CEOs responsible for the problem don't run off with billion-dollar severance packages, and guarantees the American people get their tax dollars back," he said.
Republican Richard Hanna, a Utica businessman challenging Arcuri in a district that winds south from Utica to Cortland and north to Auburn, said he would have voted against it.
"While I believe there is a major role for government to help stabilize these markets, I don't believe this was the bill to get it done," Hanna said.
Mike McAndrew can be reached at mmcandrew@syracuse.com or 470-3016.
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