by Walt Williams
The State Journal
CHARLESTON
October 02, 2008 10:59 am
—
Since the current financial crisis began, the phone calls have been pouring in to Rep. Shelley Moore Capito's office, and whether they're Democrat or Republican, most callers have been asking for one thing.
"(Of) the 765 phone calls that I got in my office, 32 were yeses, and the remainder were a vehement 'No, heck no,'" she said.
Capito was the only one of the state's three representatives in the U.S. House to vote against a $700 billion bailout for financial institutions Sept. 29. Ironically, it was the state's two Democrats who sided with a plan originally put forward by President Bush, although it had been modified by the time it hit the House.
West Virginia's delegation largely sat back and watched as leaders in both parties attempted to craft a compromise on the bailout package. However, their role became vital the day of the vote, when a slim majority in the House -- only 17 members -- helped shoot down the bill. In the aftermath, stocks tumbled.
It was mainly Republicans who defected from the administration in opposing the bill. Many, such as Capito, are in potentially close races with Democratic challengers, and a proposal that is wildly unpopular among voters would do little to help their chances for re-election.
Capito flew into Charleston's Yeager Airport just a few hours after the vote. A small contingent of reporters awaited her arrival -- a media opportunity she used to stress her opposition to what had been proposed.
"Obviously the market reaction is not good, and that tightens up the ability to loan money and to lend money, but I think we need to make sure we are doing it the right way," she said. "While our backs were up against the wall in terms of time, if we take our time, maybe we can reach an even better conclusion than we did."
Democratic candidate Anne Barth is challenging Capito for her seat. Barth said the bill in its original form was unacceptable because it essentially amounted to a "blank check." However, both parties compromised and reached an agreement that made it much more palatable than was first proposed, she said.
"I would have supported that bill because something has to be done, because it was not a blank check -- it was a loan," Barth said.
Barth blamed what she said was a lack of regulatory oversight by the Bush administration for causing the financial crisis. She said Capito should share the blame also, noting her position on the House Committee on Financial Services, which oversees the banking industry. Barth also said Capito has received thousands of dollars in campaign contributions from the industry she is supposed to regulate.
"There were warning signs that went unheeded, and that is Congress's first priority to protect the public," she said.
The state's two Democrats in the House expressed their disappointment in the outcome of the vote in prepared statements. Rep. Alan Mollohan said the $700 billion was necessary to stave a credit crisis that will make it harder for people to take out loans for homes, college tuition or to start a small business.
"While today's vote was a setback, Congress will remain in session and continue its work to fashion legislation that will restore stability to our financial system," Mollohan said.
Rep. Nick Rahall, D-W.Va., also said Congress will keep on working toward a solution.
"We will continue to work for an answer that protects the taxpayers and provides a firewall for West Virginians whose savings, jobs and homes could be hurt because of this financial fiasco," he said in a prepared statement. "This was not a wholesale bailout, as important changes were made from the initial proposal to provide a return to taxpayers."
Sen. Jay Rockefeller, D-W.Va., and Sen. Robert Byrd, D-W.Va., were quiet the day after the House failed to pass the bill. As of press time Oct. 1, the Senate was preparing to go ahead and take action on the proposal so it wouldn't need to wait for the House to take the first step.
In the days before the House vote, Byrd struck a cautious note about the plan in a prepared statement.
"The magnitude of the administration's bailout proposal is without precedent," he said. "As such, I intend to take a long, hard, close look at this bill and to seriously weigh its consequences -- both for the short and long terms."
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