Governors, business up pressure for bailout bill

WASHINGTON — Governors and business lobbyists pressured lawmakers Wednesday to pass a $700 billion financial industry bailout as top lawmakers prepared for another face-off on the issue — this time in the Senate.

"There is a time for partisanship and there is a time for getting things done," Texas Gov. Rick Perry and West Virginia Gov. Joe Manchin wrote in a letter to members of Congress.

"Americans across the country and in every demographic are feeling the pinch. If Congress does not act soon, the situation will grow appreciably worse. It's time for leadership. Congress needs to act now," they wrote.

Perry heads the Republican Governors Association while Manchin leads the Democratic governors group. Their letter was aimed at signaling there are home-state political reasons for approving the massive bailout, in which the government would spend billions of dollars to buy risky mortgage securities that are choking the financial system.

Adding its voice, the U.S. Chamber of Commerce launched 30-second radio ads in the Washington area aimed directly at lawmakers.

"Inaction, without a doubt, would cause our economy to collapse," R. Bruce Josten, the chamber's executive vice president, says in the ad. "Congress, do not delay."

The new lobbying initiative came as the Senate prepared for an evening vote on a version of the bill overhauled to attract additional support. Changes include an increase in the size of bank deposits insured by the Federal Deposit Insurance Corp., from $100,000 to $250,000.

Congressional leaders said those additions, plus complaints from constituents furious over Monday's stock market plunge, have improved the prospects for the measure's approval. After the Senate's expected passage, a House vote could come later this week.

In a letter to members of Congress Tuesday, more than 50 business trade groups said legislators had to quickly act "to prevent a meltdown" of the country's capital markets and disappearance of credit, making loans for businesses and individuals harder to come by.

Groups signing the letter included the National Association of Manufacturers, the American Banking Association and the National Association of Realtors.

The White House also stepped in by urging outside groups to press lawmakers to vote "yes" when Congress takes up the rescue legislation anew, according to a senior administration official who spoke on condition of anonymity to discuss internal strategy.