Rebels’ revolt aims to save Republican party brand
From the Financial Times, by Stephanie Kirchgaessner in Washington
Published: September 27 2008 01:59 | Last updated: September 27 2008 01:59
When Hank Paulson, the Treasury secretary, first prepared to ask Congress to approve a $700bn rescue of Wall Street, he might have believed that his toughest sell would be to Democrats on Capitol Hill. But a revolt late on Thursday night among conservative Republicans proved that it was the staunch opposition of members of his own party that could torpedo the White House bid.
Republicans on Friday appointed Roy Blunt, the second most senior Republican in the House of Representatives, to lead negotiations with lawmakers after refusing to attend talks with Senate colleagues or House Democrats. Mr Paulson was quoted by Democratic lawmakers as saying privately that a proposal espoused by conservatives in the House that would allow banks to buy insurance for troubled assets would not work on its own. But on Friday Democrats said the idea, while “useless”, could be an option added on to the legislation.
“We are going to negotiate seriously,” Mr Blunt said, pointing to the need for more than the record bail-out to contain further “free-enterprise principles”.
For some Republicans, the decision to turn their backs on President George W. Bush was a play for their presidential candidate, John McCain. Democratic leaders had signalled on Thursday that they had reached a bipartisan deal with the help of a few Republicans, denying Mr McCain the chance to ride to the rescue.
But for most of the rebel group, the decision to reject the programme had little to do with the presidential race. Instead, it signalled a more fundamental belief that Mr Bush was about to take a step too far for a party already in tatters.
“They see themselves as rescuing the conservative brand, which has been pummelled in the last few years,” said Vin Weber, a lobbyist and former conservative Republican member of Congress. “The ones I’ve talked to were not so much committed to defeating the plan as they were to planting a flag.”
The revolt of dozens of Republicans exposed an outright challenge to the leadership of John Boehner, the House minority leader, and an attempt to reclaim the party’s long lost reputation as being fiscally responsible….. MORE