Senate Majority Leader Harry Reid (D-Nev.) said he would help quickly move the administrations plan to buy bad mortgage debt from ailing investment firms but only because it would aid consumers.
Reid said he would not provide the president with a blank check to bail out large banks without getting protections for taxpayers. He said there were problems with the four-page document that Treasury Secretary Henry Paulson drafted, namely it would not stop executives from receiving huge compensation packages when they leave the bailed-out companies.
We understand the value of each and every dollar spent on this plan because we know that each dollar comes from the American people. We will work unending hours, in a bipartisan manner, to ensure that we dont just get this legislation done, but get it done right, Reid said.
With the Senate scheduled to recess by the end of the week, Reid said he is in no rush to rubber-stamp the administrations bill and has relied upon Banking, Housing and Urban Affairs Chairman Chris Dodd (D-Conn.) to craft a Democratic bailout plan.