Reply #20: McCain wanted Treasury to buy troubled assets and make loans. Many articles back my recollection.

[terisan]

My point is that Obama was working for the bailout that was detrimental to citizens and gave free rein to banks and Paulson while McCain had tried to work with Republicans to change the package. He was excoriated by Dems for not getting behind their deal with Paulson and Bush. The bailout as it passed was a Democratic Party bill and, I believe, one that they knew would not work, hence their ongoing demand that they needed Republican support.


<http://thinkprogress.org/2008/09/25/bailout-fall-apart/>

Noting that “it was McCain who urged President Bush to call the White House meeting,” Politico’s David Rogers writes that “the whole sequence of events confirmed Treasury’s fears about inserting presidential politics into what were already difficult negotiations.” One of the chief negotiators in the House, Rep. Barney Frank (D-MA), described it more bluntly:

House Financial Services Chairman Barney Frank, D-Mass., told Democratic colleagues that McCain’s involvement has destroyed chance of an agreement, sources told ABC’s George Stephanopoulos.

Frank compared McCain’s involvement to: “Richard Nixon blowing up the Vietnam peace talks in 1968.”

Marc Ambinder reports that McCain and his staff are sounding out “moderate Democrats and conservative Republicans to see whether they support the conservative Republican Study Committee’s alternative bailout bill.” McCain spokeswoman Jill Hazelbaker denies McCain is “pushing any specific proposal.”

ABC News’ George Stephanopoulos reports that when Treasury Secretary Hank Paulson told a room full of Democrats, “Please don’t blow this up,” House Speaker Nancy Pelosi said, “We’re not the ones trying to blow this up; it’s the House Republicans.” “I know, I know,” Paulson replied.
Republicans were pushing less drastic insurance plan for troubled assets

<http://online.wsj.com/article/SB122235295272975207.html>

This WSJ article has much more:

Earlier in the day, congressional leaders had hammered together the outline of a compromise that involved allotting the bailout money in installments. It was widely expected to result in a deal. However a pivotal afternoon meeting at the White House, attended by President George W. Bush, congressional leaders and the two presidential candidates, broke with no agreement.

One cause of the delay: opposition from House Republicans who have tried to fashion an alternative plan that, instead of relying heavily on taxpayer money, could let banks buy insurance for the troubled assets weighing down their books.

The snafu spawned a round of political finger-pointing, with most Democrats blaming Sen. John McCain, whose decision to return to Washington and meet with congressional Republicans appears to have complicated days of negotiations.

Sen. McCain "goes to a meeting and all of a sudden, we lose all the Republicans who have been working with us for the last five days," said Rep. Ellen Tauscher, a California Democrat. "This has to be a bipartisan deal. Unfortunately Republicans walked off the field."

McCain aides argue there was no deal at hand because there wasn't enough support among Republicans to move an agreement through the Congress. Instead, aides cast Sen. McCain as working to put together an agreement that can pass. His aides said the Arizona senator wants the Treasury to have flexibility to make loans as well as buy assets.