Idaho Statesman - "LaRocco urges tighter oversight of financial firms"

Idaho Statesman - "LaRocco urges tighter oversight of financial firms"

Democratic Senate candidate Larry LaRocco says Congress should be cautious about giving the Bush Administration everything it wants in a $700 billion proposal to rescue some of the nation's biggest financial firms.

LaRocco says government intervention is appropriate,but warned Wednesday against giving the administration a blank check and sole authority to oversee the bailout.

A better response, LaRocco argued, is legislation modeled on the Resolution Trust Corp., created by Congress in 1989 to help manage the savings and loan crisis. LaRocco, elected to the U.S. House in 1990, said that mechanism has a proven record of stabilizing a troubled economy, protecting taxpayers and ensuring government oversight.

"That model worked when I was in Congress," LaRocco said at a press conference in Boise. "I believe a similar mechanism can work at this time. Congress is doing the right thing by asking questions right now."

LaRocco is running against Lt. Gov. Jim Risch, a Republican, and three other candidates - two Independents and one from the Constitution Party - for the seat now held by Republican Larry Craig. Following his arrest in an airport men's room sex sting last year, Craig decided not to run for re-election to a fourth term.

Throughout the election cycle, Risch has led LaRocco in fundraising and a variety of polls.

With six weeks before voters head to the polls and the troubled economy at the forefront, Risch said it's crucial for Congress to inject money into credit markets and mete out consequences to the executives responsible for the crisis.

Treasury Secretary Henry Paulson agreed Wednesday to demands from Democrats and Republicans to limit the bonus and pay packages of executives whose companies would be helped by any bailout.

Risch, attending meetings with lawmakers and campaign fundraisers in Washington, D.C., this week, didn't offer any specific ideas for solving the crisis but said more government regulation is needed to prevent future financial meltdowns.

"Clearly, regulation is way overdue," Risch told The Associated Press. "The best model we have is the type of oversight put in place after the bank crashes of 1929 and the updating of those over the years."

Risch also took aim at LaRocco's post-congressional career as an employee of the American Bankers Association, which required him to register as a federal lobbyist.

"He lobbied for bills that deregulated an industry that desperately needs oversight," Risch said. "This is additional hypocrisy on his part to now be saying he has a solution."

Both candidates have received campaign contributions from the trade group's political action committee, Bankpac, during this election cycle. Risch has accepted three donations totaling $8,000, compared to $3,000 for LaRocco, according to the Center for Responsive Politics.

LaRocco said he worked for the ABA for five years, starting in 1995 and dealing with issues concerning modernization of the banking industry. He said his lobbying work was limited, but his position required he register as a lobbyist in 1996.

"My knowledge of banking and policy issues was the reason I was brought on board," LaRocco said. "It's an empty charge he's making."

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