Senate Majority Leader Sen. Harry Reid, D-Nev., talks with reporters during a news conference on the passage of the Senate version of the bailout package Wednesday, Oct. 1, 2008 in Washington. From left, Sen. Christopher Dodd, D-Conn., Reid, Sen. Judd Gregg, R-N.H., and Senate Minority Leader Sen. Mitch McConnell, R-Ky. (AP Photo/Evan Vucci) WASHINGTON—President Bush and congressional backers of a $700 billion financial industry bailout carried out high-intensity lobbying Thursday, on the eve of a crucial House vote that Bush said "a lot of people are watching."
Bush resumed his plea for passage from the White House as both Democratic and Republican party leaders worked the offices and halls of congressional office buildings. The goal: secure enough votes to send Bush a bill that he said presents the "best chance" to combat the widening credit crunch.
Speaking to reporters during a meeting with business executives, Bush said the increasingly tight credit markets are in some instances threatening the existence of small businesses. He said Congress "must listen" to those arguing for passage of the bill, derided by many on Capitol Hill and within the general public as a handout to a risk-taking Wall Street.
The much-maligned measure was returned to the House after the Senate resuscitated it with tax cuts and other sweeteners in a 74-25 vote late Wednesday. The bill had been defeated in House narrowly on Monday.
The fierce lobbying came as the head of the Federal Deposit Insurance Corporation, urged people to remain calm.
"I think overall the banking system remains very sound so that's why I think it's so important for everybody to keep their head," commission Chairman Sheila Bair said on C-SPAN. "What I don't want is to see otherwise healthy institutions start to get into trouble just because of liquidity pressure ... Wall Street should be taking their cue from Main Street right now. Main Street deposits are staying there."
But the drumbeat of bad news rattled on. A government report said that orders to U.S. factories plunged by the largest amount in nearly two years as the credit strains smashed manufacturers with hurricane-like force.
Stocks declined on Wall Street early Thursday after the number of people seeking unemployment benefits rose last week to a seven-year high. The Dow Jones industrials fell by about 135 points, their fourth straight triple-digit move.
Bush said the issue is affecting employees and families across the country and that lawmakers "must listen" so confidence can be restored in markets and financial institutions.
The bailout package was never in danger in the Senate. Lawmakers there played catalysts for the House instead, adding tax provisions popular with the left and right in a bid that House leaders hope -- but cannot guarantee -- will persuade enough of the House rank-and-file to switch from "nay" to "aye" on a highly contentious bill a month before Election Day.
They were especially targeting the 133 House Republicans who voted against the package.
Rep. David Dreier, R-Calif., said Thursday he will vote for the bill, as he did Monday, despite some misgivings
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