More Republicans Balking At Wall Street Bailout Plan
Sen. Richard Shelby, the top Republican on the Senate Banking Committee, told CNBC he has doubts about the Bush administration's proposed $700 billion financial rescue plan.
Shelby added that he plans to raise the issues at a meeting with lawmakers at the White House Thursday afternoon.
Senator Richard Shelby
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"I have my doubts," the Alabama senator said. "I don't know this will solve all the problems in the economy."
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Shelby's comments came after House GOP leader Rep. John Boehner of Ohio, said his party has not reached a deal yet on a $700 billion plan to bail out Wall Street,
"I am encouraged by the bipartisan progress," Boehner said in a statement. But "House Republicans have not agreed to any plan at this point."
Shelby told CNBC he believes Congress "will do something" on the proposed bailout plan before the weekend, but he thinks "it will be the wrong thing."
He said he opposes allowing foreign banks to participate in the plan for the government to buy up to $700 billion of soured investments—most tied to home mortgages—that have frozen financial markets.
Shelby also said he is skeptical about a proposal to use reverse auctions to determine how much the government pays for the toxic securities.
In a separate CNBC interview, Democratic Sen. Charles Schumer said the Democrats are sending several proposals to President Bush to amend the original Treasury plan.
They include:
More oversight of the bailout, including two independent boards that include congressional representatives.
The money will be made available in stages, with $250 billion up front.
The government should get warrants from any company participating in the bailout.
Earlier, Democratic Rep. Barney Frank told CNBC that lawmakers have agreed on most key issues in the proposed $700 billion Wall Street bailout plan, but House Republicans still aren't on board.
"The House Democrats, and the Senate Democrats and Senate Republicans came to agreement on all but one issue," said Frank, who is chairman of House Financial Services Committee.
The only remaining issue, he said, "was whether the bankrupcty laws should be able to applied to primary residences."
But House Republicans are balking on several issues, Frank said, though he added that he wasn't sure what their objections were.
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