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Bush would veto foreclosure relief legislation
Storm brews over foreclosure bill as Bush vows veto, surprising Democrats
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President Bush declared Wednesday that he would veto the foreclosure relief legislation being considered in Congress, surprising Democrats who believed they had administration support for key portions.
In remarks after meeting with Republicans, Bush said the bill would "reward speculators."
"I will veto the bill that's moving through the House today if it makes it to my desk, and I urge members on both sides of the aisle to focus on a good piece of legislation that is being sponsored by Republican members."
DEMOCRATS' RESPONSE
Democrats said the legislation to provide federal support for foreclosure prevention and speed mortgage refinancing had been drafted largely in consultation with the administration.
House Democrats, led by Rep. Barney Frank, D-Mass., chairman of the Financial Services Committee, had been hoping to build a bipartisan consensus. His committee had approved the bill 46 to 21, with 10 Republicans joining the Democrats.
Sen. Christopher Dodd, D-Conn., chairman of the Senate Banking committee, noted that earlier this week, Federal Reserve chairman Ben Bernanke expressed support for the core notion of the legislation.
For Bush "to say he is going to veto a bill that isn't even developed over here -- I don't know who he's listening to," Dodd said.
REPUBLICAN REACTION
The veto threat emboldened House Republicans to throw up repeated roadblocks to delay debate of the legislation, including a series of votes on motions to adjourn. That prompted an angry argument between party leaders over procedural tactics.
The majority leader, Rep. Steny Hoyer of Maryland, gave a floor speech accusing Republicans of an "abuse of process."
In response, the Republican leader, Rep. John Boehner of Ohio, accused the Democrats of cutting Republicans out of the legislative process.
THE BOTTOM LINE
The debate pushed back the House vote on the measure to today. However, it clouds the prospects of an election-year rescue package.
IN OTHER ACTION:
Farm bill: Negotiators on a $300 billion farm bill say they have reached a tentative deal on the bill and it will be considered by the House and Senate next week. But the Bush administration has objected to the bill, which would eliminate some government payments to individuals who make more than $750,000 in farm income annually.
EPA administrator: Democratic senators lambasted the Environmental Protection Agency for ousting its top administrator in the Midwest, Mary Gade, after she pressured Dow Chemical to clean up dioxin-contaminated soil in Michigan. Sen. Sheldon Whitehouse, D-R.I., said it raised warning signs about the credibility of the EPA.
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Response to allarson73
Shame on you for owning shares in a company the operations of which you knew nothing about. Again, free market...your right to buy the … read more stock (or house), your right to sell it, your right to make money, your right to lose money. Make informed decisions. An interesting tidbitâ¦did you know that a sizable percentage of foreclosed properties were foreclosed BEFORE any rate adjustment happened? And do you know how long it takes a bank to actually foreclose? You have to miss at least three to five payments to get their attention, then another 90+ days for the bank to take back the keys (redemption, auction, etc.). Banks are taking back properties on a one-year adjustable, a common product. That means people made maybe only a couple of payments. People KNEW they couldn't even afford the initial payment, let alone the payment after the rate adjustment, but the bought it anyways. So as a responsible person, I should feel inclined to bail them out?
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