Bush to make case to world leaders on rescue plan
Bush is making his administration's action to try to stem a U.S. financial meltdown a centerpiece of this week's talks with fellow world leaders, the White House said on Monday.
By Agencies |
NEW YORK: President George W Bush is making his administration's action to try to stem a U.S. financial meltdown a centerpiece of this week's talks with fellow world leaders, the White House said on Monday.
Bush's final visit to the U.N. General Assembly is overshadowed by the financial crisis on Wall Street, which has touched off worries around the globe as well. White House spokeswoman Dana Perino said that Bush will seek to reassure the heads of foreign delegations by saying he took ``aggressive, decisive action'' when he asked Congress to approve a $700 billion financial rescue plan.
With financial markets squeezed by tight credit, Bush's government wants lawmakers to move quickly on the package, which would allow the government to buy up a mountain of bad mortgage loans that have been weighing down financial companies.
Back in Washington, though, congressional Democrats were pushing their own version of the plan. Bush is also getting pushback from the other side, as conservative House of Representatives members from his own party are balking at the costly administration bailout of struggling financial institutions.
Before leaving the White House, the president said differences over details were understandable. But he warned lawmakers not to bog down the economic plan.
``Americans are watching to see if Democrats and Republicans, the Congress and the White House, can come together to solve this problem with the urgency it warrants,'' Bush said. ``Indeed, the whole world is watching to see if we can act quickly.''
ADVERTISEMENT
At the United Nations, Bush planned to explain to fellow leaders that such a hefty government intervention is not his ``first instinct,'' Perino told reporters traveling with the president. ``He would not have wanted to take this action to help these companies if he wasn't convinced by the considered judgment of his senior economic team that it was critical in order to protect the American taxpayers and the American economy as a whole,'' Perino said in previewing Bush's message to world peers.
Perino said the global community is showing support. Earlier Monday, the Group of Seven, an organization of the world's leading economic powers, pledged to do all it could to help ease the crisis. The group said in a conference call that it welcomed the extraordinary steps the United States has taken so far.
But Democratic lawmakers are demanding additions to Bush's proposal that target accountability and help for individuals.
ADVERTISEMENT
According to a draft of their plan obtained Monday by The Associated Press, judges could rewrite mortgages to lower bankrupt homeowners' monthly payments. Companies that unloaded their bad assets on the government in the massive rescue also would be required to limit their executives' pay packages and agree to revoke any bonuses awarded based on bogus claims. Perino would not discuss the White House's stance on such items. She sounded an upbeat tone, saying the administration has received some good responses so far. ``Everyone understands the gravity of the situation,'' she said.
ADVERTISEMENT
On his way to New York for the international meetings, Bush stopped in New Jersey to raise money for two Republican congressional candidates. About 200 people attended the event in an affluent area of Colts Neck, New Jersey. Tickets ranged from $1,000 to $10,000 for a photo with the president. About 30 people protested the president's visit, including John Hreno of Hillsboro, New Jersey, who was among 4,000 Merrill Lynch workers who lost their jobs this year due to the Wall Street crisis.
``After 17 years, I'm out of work because (Merrill Lynch) lost $40 billion on subprime mortgages,'' he said. ``Bush and McCain orchestrated this disaster and made it fall like a house of cards. Now you, me and everyone else is paying for it out of our own pockets.''
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
