From Deseret News archives:

Bailout hopes rise as more 'no' votes switch

Published: Thursday, Oct. 2, 2008 4:24 p.m. MDT
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Republican Rep. Jim Ramstad of Minnesota also switched to "yes," partly because the Senate attached the bailout to legislation he spearheaded to give people with mental illnesses better health insurance coverage.

Democratic Rep. Emanuel Cleaver of Missouri was switching, too, said spokesman Danny Rotert, declaring, "America feels differently today than it did on Friday about this bill."

Emboldened by the feverish bidding for votes, other members of both parties were demanding substantial changes to the legislation before they would vote for it. A group of Republican opponents indicated they'd back it if the price tag were slashed to $250 billion and several special tax breaks added by the Senate — including for children's archery bow makers, imported rum producers and racetrack owners —were removed. Democrats wanted to add a way to pay for the bailout and more help for homeowners staring at foreclosure.

Speaker Nancy Pelosi, D-Calif., said no, such revisions were impossible because they would slow the measure's enactment and further shake markets.

"I don't think that any changes here will do what we need to do, which is right now to send a message of confidence to the markets that Congress will act," she said.

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The Senate breathed new life into the measure Wednesday after the stinging House defeat, voting 74-25 to approve the bailout, with additions designed to appeal to key constituencies. Business lobbyists were also inundating Capitol Hill in a rush to win over wavering lawmakers in both parties.

The changes helped satisfy some Republican critics, but angered conservative "Blue Dog" Democrats who are concerned about swelling the deficit. Still, Hoyer predicted the number of Democratic defectors "is going to be minimal."

In efforts to appease GOP opponents, the Senate added a provision to raise, from $100,000 to $250,000, the limit on federal deposit insurance.

House Republicans were also cheered by a decision by the Securities and Exchange Commission this week to ease rules that force companies to devalue assets on their balance sheets to reflect the price they can get on the market.

The developments Wednesday prompted one Republican, Rep. John Shadegg of Arizona, to say he was likely to support the new bill.

Another Republican, Steve LaTourette of Ohio, was leaning toward voting yes, but insisted Thursday on changes to the bill.

Peter DeFazio, D-Ore., said he still opposed the bill despite Senate inclusion of a program that pays rural counties hurt by federal logging cutbacks.

Beyond the Capitol, the drumbeat of bad economic news rattled on.

Recent comments

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Re: Ignorant | Oct. 2, 2008 at 7:17 p.m.

As a life-long Democrat, I have to tell you that I won't be voting at...

Former Democrat | Oct. 2, 2008 at 6:48 p.m.

First, you've already discredited yourself by misspelling "Utahn"...

To Utahans are so smart | Oct. 2, 2008 at 6:45 p.m.

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