September 18, 2008
Posted: September 18th, 2008 02:55 PM ET

From ,
Key Republicans blasted the Treasury Department Wednesday.
Key Republicans blasted the Treasury Department Wednesday.

WASHINGTON (CNN) - Key Republicans on Capitol Hill Wednesday blasted the Treasury Department and the Federal Reserve for orchestrating an $85 billion bailout of insurance giant American International Group.

The criticism came a day after lawmakers were surprised by the news that taxpayers would again be called on to shore up a member of the struggling financial sector.

"Once again the Fed has put the taxpayers on the hook for billions of dollars to bail out an institution that put greed ahead of responsibility and used their good name to take risky bets that did not pay off," said Sen. Jim Bunning, R-Kentucky, a member of the banking committee.

A spokesman for Sen. Richard Shelby of Alabama, the top Republican on the banking committee, said the senator "profoundly disagrees with the decision to use taxpayer dollars to bail out a private company" and is upset the government has sent an inconsistent message to the markets by bailing out AIG after it just refused to save investment bank Lehman Brothers from bankruptcy.

"The American taxpayer should not be asked to unwillingly assume the inordinate risks that financial experts knowingly undertook, particularly when taxpayer exposure is increased by the ad hoc manner in which these bailouts have been engineered," said Shelby's aide, Jonathan Graffeo.

A top House Republican, Rep. Roy Blunt of Missouri, complained about not getting advance notice of the bailout and said House Republicans are struggling to "understand a coherent strategy" about which firms get rescued and which ones don't.

Rep. Adam Putnam of Florida, the third-ranking Republican in the House, said the cost is "unnerving" and called on the Treasury Department and Federal Reserve "to dispatch an envoy to the Hill to bring members of Congress up to speed."

"The communications lines are not operating efficiently," he said.

Late Wednesday, the White House agreed to send a top Bush economic advisor and an official from the Fed to brief House Republicans Thursday, according to a House GOP aide.

Meantime, congressional Democrats placed the blame for the crisis squarely on the Bush administration, arguing it failed to aggressively regulate the financial industry.

"The most recent bailout initiated by the Bush administration - that of AIG - is just another example that George Bush is a failed manager," said House Speaker Nancy Pelosi, D-California. "Because of the inattention, or a decision on their part to have crony capitalism in our country, Americans across the country are feeling the pain of this."

Pelosi said two House committees will investigate the recent bailouts "to tell us how we can avoid this in the future, what went wrong here and also to look into this issue of fraud and mismanagement" at AIG.

White House spokeswoman Dana Perino said Congress could have done more to head off the crisis.

"I think that Congress needs to take - before they start throwing arrows - take a little bit of time for some self-reflection. But also, why don't we just set that aside for a minute and focus on the fact that we have a crisis that we're trying to manage."

Senate Majority Leader Harry Reid - who also complained that he didn't know a bailout of AIG was in the works - said Congress won't change laws immediately to address the rapidly unfolding financial crisis because "no one knows what to do."

"We are in new territory here," Reid added. "You could ask (Federal Reserve Chairman Ben) Bernanke, you could ask (Treasury Secretary Henry) Paulson. They don't know what to do but they are trying to come up with ideas."

He said he will keep the Senate in session through the end of the year so committees can hold hearings and start writing legislation that he said could become law next year.

"It's a multitrillion-dollar issue that's facing America and we can't do it in some timeline that is unrealistic," Reid said.

Filed under: Capitol Hill


william   September 18th, 2008 7:42 pm ET

Helping the Rich,Stepping on the poor ...Thats all what the republicans are still doing.....Who really benifits from the Bailouts? THE OWNERS AND CEO"S and the tax payers pay for it....HOW CAN A REPUBLICAN REFORM A REPUBLICAN? If i am not mistaken isn't McCains supporters Republican

Texas Witch Twister   September 18th, 2008 7:41 pm ET

IF YOU BAIL OUT THESE FINANCIAL INSTITUTIONS THEN YOU MUST BAIL OUT THE FORECLOSED ON HOMEOWNER WHO WHERE SENT INTO BANKRUPTCY. AFTER ALL IT IS THEIRS AND OUR TAX DOLLARS. WE SHOULD HAVE A SAY AS TO WHERE THE MONEY IS SPENT. I SAY THE RICH GAMBLE THEY SHOULD BE FINANCIALLY STABLE ENOUGH TO LOSE IT.

Harold from Canada   September 18th, 2008 7:32 pm ET

forget it......

oscar   September 18th, 2008 7:16 pm ET

what do you expect? trump suporting someone who will tax him? no way! Expect same from tight-fisted millioniares who will not like to be taxed.

Peter (CA)   September 18th, 2008 7:14 pm ET

Marj–

Fannie and Freddie were NOT government agencies. They were private enterprises before this fiasco.

I agree with you that both sides are complicit in this mess but when the Republicans run the White House and the Congress and make the laws, they have to take the blame.

The Democrats have controlled the House for 20 months, the Senate is 49-49. They propose legislation; Bush vetoes it, not enough votes for an override.

Republican rancor is hollow.

CA gal on the left coast   September 18th, 2008 6:53 pm ET

Look at all these hipocritical finger-pointers. If the current lame duck president hadn't lied his way into getting congress to enter this Iraq mess, the country wouldn't be in this historic deficit debt, the economy wouldn't be bankrupted, and the country's wealth wouldn't be squandered for some oil-war based on falsehoods and corruption.
What a crock of lies.

Larry   September 18th, 2008 6:16 pm ET

Amazing New's Flash, Trump supports Mc-insane...hahahahahahahahaha.

Marj,Paso Robles, Cal   September 18th, 2008 6:14 pm ET

All roads lead to Congress, folks. Both Dems and Repubs are to blame for this mess. Clinton AND Bush administrations FAILED to properly regulate. Fannie and Freddie are Govt. agencies-our tax dollars went to bail out stupid and greedy individuals. All Govt't agencies involved should be taken to task for their roll in this fiasco. You can't put a 'D' or an 'R' on this one; ALL are to blame. Our government has FAILED us for the last 18 years.

Linda K.   September 18th, 2008 6:13 pm ET

About Obama's experience. He was a community organizer (which is a big deal) for two years. He led the Harvard Law Review and graduated magna cum laude. He taught constitutional law at the University of Chicago and practiced as a civil rights attorney. During his years in the Illinois state senate he proposed hundreds of pieces of legislation to help the people of Illinois. Since being elected to the U.S. Senate in 2004, he has pushed through bills for transparency in government and non-proliferation, or reduction of nuclear weapons worldwide, among other things.

On top of this, his judgment is excellent. He called for a timetable for withdrawal in Iraq before Bush decided this was a good idea, and he called for negotiation rather than armed confrontation with enemies.

These are his accomplishments that I've commted to memory. There are many others.

maurice   September 18th, 2008 6:11 pm ET

People are more worried about paying an extra buck a gallon then
or national security.Wake up people!

Independent but Leaning   September 18th, 2008 6:11 pm ET

Also- where was your precious Democrat controlled congress while this was going on? The committee chairpersons who were charged by the people to specifically monitor these institutions- asleep at the wheel- encouraging high risk loans to low income buyers. There's plenty of blame to go around here, but the fact is Congress is charged with matters of commerce.

It's a good thing we turned the legislative keys over to Pelosi and Reid- just think how far this will go when Obama is rubber stamping their folly.

ephra   September 18th, 2008 6:11 pm ET

Don't help the banks, help the people, impress somebody.

Independent but Leaning   September 18th, 2008 6:07 pm ET

And I trust that you guys know that in the last 10 years only ONE senator took more money from Fannie and Freddie than Obama (who has only been there for 3 years). He took more in 3 years than 98% of the guys around him took in 10 years!! Wake up people and quit drinking the kool-aid.

Yes, the #1 guy was also a Democrat. Look it up. It's a fact.

Freedom Loving Patriot (God fearing too!)   September 18th, 2008 6:05 pm ET

LOOKS LIKE WE FOUND THE WMD's!!!

It was Bush's laisse-fair economic policy. I could hear it now...

"Let's see if we could run the clock out on this one boy's. And when Obama takes office, the ecomony will tank and he'll take the hit"

john   September 18th, 2008 6:04 pm ET

wow GOP?!!!!!!!!!!!!! what a joke gop is. ask MCCAIN what happen to our money he will tell you uhhhhhh ohhhhhh uhhhhhh ohhhhhh our friends took it and ran out of the country.

Dave G, Minneapolis   September 18th, 2008 6:03 pm ET

oh, both parties are complicit. But actually no one can control the economy and the government shouldn't even try. Neither candidate can offer a balanced budget but they feel they can offer advice on how the economy should be handled or companies regulated? No Way, No How, No Democrats, No Republicans.

These two parties have created the mess. Only the Libertarian Party has a platform to decrease government spending, reduce taxes and eliminate all of these taxpayer funded loans and bailouts. Let the free market prevail. I don't pay taxes to shore up AIG in the hopes that they will pay back the loan in two years...where's the guarantee that we won't be bailing them out in two years? Same thing for the Mortgages; if people cant pay their mortgage, a 6 month moratorium on paying the bill would not help, just delay the inevitable.

Why can't McBama / Obacain get the picture that we need Leadership? Starting with balanced budget.

No to Dictator wannabe Obama   September 18th, 2008 6:03 pm ET

Headline: November 5th, 2008

President John McCain

Vice President Sarah Palin

Thank you America for saying no to Cuban Type Dictatorship wannabe Barack Obama!

Freedom Loving Patriot (God fearing too!)   September 18th, 2008 6:03 pm ET

Let me spell it out for you

REPUBLICANS FAULT!
REPUBLICANS FAULT!
REPUBLICANS FAULT!
REPUBLICANS FAULT!
REPUBLICANS FAULT!
REPUBLICANS FAULT!
REPUBLICANS FAULT!
REPUBLICANS FAULT!
REPUBLICANS FAULT!
REPUBLICANS FAULT!
REPUBLICANS FAULT!

KATHLEEN   September 18th, 2008 6:02 pm ET

WHY NOW? Are the Republicans going against what they voted for?
Why Now? Are the Republicans trying to separate from their own
party?
Why did John McCain vote 95% of athe time for Bush, but does not mention his name now!!!!

Freedom Loving Patriot (God fearing too!)   September 18th, 2008 6:02 pm ET

It's not to late John. You could CHANGE YOUR MIND AGAIN and say "I really want Romney as my VP. Sarah was just some more of my "self-depricating humor", ha-ha.

Independent but Leaning   September 18th, 2008 6:01 pm ET

ran-

the officers of Fannie and Freddie, who did get their millions, are top Obama campaign officials. Please folks, do your homework.

d   September 18th, 2008 5:59 pm ET

THE REPUBLICANS WANT TO PRIVATIZE SOCIAL SECURITY...AND PUT YOUR MONEY IN THE HANDS OF INVESTORS LIKE THIS??????

Independent but Leaning   September 18th, 2008 5:59 pm ET

This country controlled By Obama, Pelosi and Reid... woo hoo, break me off a slice of that. Do you people have any idea how far to the left these folks are?

A Dem congress with moderate McCain as president will already be a significant change in course.

And if you think McCain is 4 more years of Bush, then you are very politically uneducated and need to do some homework and think for yourself.

Change course, but don't drive this country off of the map.

john   September 18th, 2008 5:58 pm ET

well what happen to our money now??????????!!!!!!!!!!!! gop crooks ate that money and left the country

ran   September 18th, 2008 5:56 pm ET

Too little way too late. But the CEO of this and the other bail outs will run with their multi-millions to some far away country and live happily ever after. If the gov. was really outraged they would not allow the money to go to the CEO or other top exec.

We the people can help make sure this does not happen again by electing Obama/Biden and other Democrats this time.

ROMNEY 2012   September 18th, 2008 5:54 pm ET

We so needed Mr McCain to pick Mitt Romney. He would have a plan to take care of the economy. I am worried that Sara will not be able to deal with the economy or with our foreign troubles. I am afraid it will be Obama this time. So I say "ROMNEY 2012".

Darryl   September 18th, 2008 5:52 pm ET

The sad story is that somebody got PAID. One of Bush Boy's GOT PAID..

Check the Bank here and off shore.. AIG, and the BUSH Connect is laughin all the way to the bank..

The sad think is we can touch them. Homeland Security and all the too in the shad can't figure out where's the money.. just go to south Texas the have to replace their boats...

Lesley   September 18th, 2008 5:51 pm ET

What a joke that McCain is taking credit for warning Congress about the pending crisis two years ago. He must be confusing himself with Obama, who really did try to get Congress to act two years ago while McCain was still in his deregulation mode. Voters, please check the facts. McCain's lies are coming fast and furious now, on a daily basis. It would help if the media kept up with them all.

Bill Charlotte,NC   September 18th, 2008 5:51 pm ET

McCain also told the audience that "Sen. Obama's own advisers are saying that the crisis will benefit him politically."

From CNN.Com: "A McCain campaign spokesman could not point to any specific instance of an Obama adviser or surrogate making such a comment about the Wall Street crisis in recent days."

MCain just makes stuff up. He (they) made up Lying Plain Sarah and he has made this up. Wake up America! This man has nothing to offer except his imagination!

Not sleeping at the switch   September 18th, 2008 5:51 pm ET

FOLLOW the MONEY

Check and see the total cash given to BUSH BOTH times he ran for the whitehouse and to McCain THIS time and you will see WHY Bush did what was NEVER done before and was NEVER meant to be done EVER!

Simple as that. I want MY money back!!!!

Lesley   September 18th, 2008 5:51 pm ET

It's a joke that McCain is taking credit for warning Congress about the pending crisis two years ago. He must be confusing himself with Obama, who really did try to get Congress to act two years ago while McCain was still in his deregulation mode. Voters, please check the facts. McCain's lies are coming fast and furious now, on a daily basis. It would help if the media kept up with them all.

darko   September 18th, 2008 5:50 pm ET

1. What kind of experience do you all mean when you say that Obama doesn't have experience?

He's never run anything in his life except a campaign. He's never been in charge of anything or anyone other than his family...and that's debatable. He's done nothing remarkable in the state legislature or congress except campaign.

He's been campaigning his entire career...

mitchell   September 18th, 2008 5:50 pm ET

so? republicans are mad at the republican government ,that they supported over and over on policy and blamed on democratic congress in control the last 1 1/2 years? that dont make no sense?

Franky   September 18th, 2008 5:49 pm ET

Well, well. It looks like I have some things in common with the GOP. Well, technically, I agree with them on most of the things but the point is that times have changed.

Even I can't control that...

Rodger   September 18th, 2008 5:49 pm ET

It's your Republican Admisistration...live with it!!!!

Lesley   September 18th, 2008 5:48 pm ET

Continue to press McCain on his consistent claims of being a deregulator. It's unbelieveable that he is now coming out in favor of regulation. It's like his drill now mantra. He sees a way to gain favor with the public and so he is supporting offshore drilling. Will the voters fall for it? Not if the media does its job. How about it journalists!

Dan , TX   September 18th, 2008 5:47 pm ET

I suggest that people get all the facts on AIG and Lehmann Bros. and all the other bailouts and figure out why some might be good for taxpayers while others would be bad for taxpayers. I suspect this article will attract only comments from people who don't understand anything about the details of the "bailouts" and speaking from ignorance is not normally a reasonable approach to solving a problem.

darko   September 18th, 2008 5:47 pm ET

Obama proposed squat on regulation...quit feeding these peoples lies.

Just like he's pumping himself up by claiming he had anything to do with the latest stimulis package.

Lipstick for Limbaugh   September 18th, 2008 5:46 pm ET

Heck! I thought the Republicans were in power for the past 8 years.

Maybe some regulation would have helped PROTECT OUR TAX DOLLARS!

Fabian   September 18th, 2008 5:45 pm ET

We should not have bailed out AIG however I will never lower myself to be scum by becoming democratic.

darko   September 18th, 2008 5:45 pm ET

The republican...the republicans...the republicans....

IT'S CONGRESS PEOPLE – the one headed by democrats!

AIG wouldn't have been able to take in such crappy loans had it not been able to deal with shills like freddie and fannie which avoided GOP backed increased oversite because of DEMOCRATIC stonewalls.

Obama's advisors made millions from freddie and fannie! Obama recieved boat loads of cash from them. How convienient, yes?

If I could ask two questions?   September 18th, 2008 5:44 pm ET

1. What kind of experience do you all mean when you say that Obama doesn't have experience?

2. Why did John McCain really pick Sarah Pailin?

Someone please answer.

Foreign observer   September 18th, 2008 5:43 pm ET

Appropriate regulations which Obama proposed two years ago would have avoided what becomes neccessary now. It is sad for the taxpayer but anything else would be even worse.

cecil   September 18th, 2008 5:41 pm ET

Patriotism; John F. Kennedy

Ask Not What Your Country Can Do For You, But What You Can Do For Your Country.

Obama/Biden 08

Sarah Bell   September 18th, 2008 5:37 pm ET

WASP!!! WomenAgainstSarahPalin

Peter (CA)   September 18th, 2008 5:35 pm ET

You have got to be kidding me!

Republicans-Start by thanking your buddy Phil Gramm for brining in the legislation for starting this mess. Then thank George Bush for ignoring the problem and allowing Wall St. to police itself.

You guys have nothing to be outraged about. You guys wanted to privatize Social Security and leave it in the hands of these people you now call "greedy".

Farrell, Houston, Tx   September 18th, 2008 5:34 pm ET

SOVERIGN FUNDS WILL COME NEXT TO HELP IN THE BAIL OUT AND THAT'S A BIG MAYBE.

baby mama   September 18th, 2008 5:31 pm ET

not to worry......when Osama and the Demotax party get done with you...........you wont have any more money to lose

Jon   September 18th, 2008 5:29 pm ET

Funny, considering all those CEOs will be voting Republican.

Ex-Republican for Obama   September 18th, 2008 5:27 pm ET

So they would also be against bailing out oil companies by giving them astronomical tax breaks proportianately compared to those given to us common folk?

If so, blast McCain's economic basis. Otherwise...STFU and stop trying to fool us with your false policies that are suddenly "DIFFERENT then yesterday"

voter   September 18th, 2008 5:27 pm ET

I find it laughable that the republicans are arguing with the goverment for bailing out AIG. We will not be in this mess if republicans agreed to regulate the markets. If the goverment was monitoring the actions of wall street, then the economic mess we are in would not have ocurred. The repblicans should take responsibility for their failed actions in regulating the markets. In that case, they should be thrown out.

fivepink   September 18th, 2008 5:25 pm ET

Spare me the phony outrage. The Bush Administration and their Republican flunkies are complicit in this. Phil Gramm and his wife Wendy are at the heart of this economic disaster.

"A top House Republican, Rep. Roy Blunt of Missouri, complained about not getting advance notice of the bailout and said House Republicans are struggling to "understand a coherent strategy" "

Struggling to understand a coherent strategy-Sounds like the new Palin/McCain slogan.

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