Published: October 13, 2008 11:41 am            

Capito stands by decision to oppose bailout

CHARLESTON — Rep. Shelley Moore Capito said the ongoing Wall Street crisis is evidence that Congress rushed recklessly into passing the $700 billion government bailout plan.

Capito, R-W.Va., was one of 171 House members to vote against the final bill 10 days ago. Congressmen Alan Mollohan and Nick Rahall, D-W.Va., were among the 263 representatives to support it.

Despite the bill's passage, economic anxiety and Wall Street woes have persisted. Last week, the Dow Jones Industrial Average had its worst week ever as it plummeted nearly 1,900 points.

The 18.2 percent drop was the biggest in the index's 112-year history.

Fear is spreading onto Main Street. A new Washington Post-ABC News poll shows that less than half of Americans believe they will have enough money to last through retirement.

Capito said she remains hopeful that the rescue legislation ends up working, despite her opposition to the bill.

"I hope the premise set for it works," she said. "I'm as concerned as everybody else to see the market so unsettled and going down rapidly. It concerns me when people look at their retirement accounts.

"Small businesses needing money for new equipment, that's worrisome. There could be job losses. That could be an offshoot if we don't get this under control."

Capito remained firm in her reasons for opposing the bailout package. After the House initially rejected the bill, it reconvened a few days later to pass a revised version.

The congresswoman, however, said the bill was essentially the same and lacked sufficient oversight and taxpayer protections.

She also expressed disgust over American International Group Inc. executives spending hundreds of thousands of dollars at a California retreat just days after getting a federal bailout.

AIG received an $85 billion loan from the government to prevent bankruptcy. The company then sent executives to a resort south of Los Angeles for spa treatments, banquets and golf.

"People are upset with the bad actors and big business," Capito said.

Once Congress is back in business, Capito said she intends to strengthen the oversight aspects of the package. Capito serves on the House Financial Services Committee, which will help oversee the passed legislation.

But Capito said she doesn't expect to see any significant actions in Congress until after the election.

"Legislative business is at a halt," she said. "But I think I have confidence we'll come out of this and it will land at our feet."

Capito, a four-term Congresswoman, is up for re-election against Democratic challenger Anne Barth.

A longtime aide of U.S. Sen. Robert Byrd, Barth said she would have reluctantly voted for the financial rescue package.

"My questions revolving around the bill was it was too much too soon," Capito said. "Now it seems nobody's really addressing why this hasn't had a desired effect. It should have put confidence back in the market, and that troubles me. I'm concerned because this was something heavily touted by the leadership, the president and Congress."

So far, Capito agrees that West Virginians have been somewhat isolated from the tumbling of Wall Street. But that could change.

"I think our energy sector is really keeping our economy a little isolated, and we don't have a high number of foreclosures," Capito said. "But at the same time, when you look at energy consumption which would burn out coal, no one's growing business or transporting goods, that's going to have an overall effect on everybody. People won't be able to get credit to move forward and that's going to hunker down everybody."

        

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