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Walz’s Republican opponent in November, Brian Davis, said he also opposed the bailout bill, which would have authorized U.S. Treasury officials to use up to $700 billion in federal funds to buy troubled assets from the financial industry.
Walz told the Daily News on Monday afternoon that the bill must do more to help those facing foreclosure keep their homes, to ensure that bailout funds don’t purchase assets held by foreign institutions, and to limit compensation for executives of failing banks and lending companies. Walz, who represents southern Minnesota’s 1st District, expects House members to vote again on a modified version of the bill when they reconvene later this week.
“It’s paramount to get it right, not just get it done,” Walz said.
Walz said an “overwhelming majority” of his constituents gave him negative feedback on the proposal. The financial crisis that spawned the bill underscores the need for tighter regulatory oversight on Wall Street, Walz said, adding that those safeguards should be attached to the bailout legislation.
“The constituents in southern Minnesota were saying: ‘Make sure, no matter what you
do, this never happens again,’” Walz said.
Walz and fellow Minnesota DFL Rep. Collin Peterson were among the 95 of 235 Democrats to vote against the bill, while House Republicans opposed it, 133 to 65.
Davis, a Rochester physician running to replace Walz, said Monday that he is skeptical of any bill that authorizes the government to buy assets from the financial industry — though Davis said he wouldn’t rule out supporting a modified bailout plan. Davis blamed the larger crisis on the Bill Clinton administration for encouraging financial institutions to issue high-risk loans and mortgages starting in the mid-1990s, and on regulatory policies that Davis said undervalue certain securities and other assets.
“It’s not impossible that this situation could correct itself if these underlying problems ... were corrected,” Davis said.
Mark Sommerhauser may be reached at (507) 453-3514 or at sommerhauser@winonadailynews.com
