Worthington Daily Globe - "Franken, Coleman lay out concerns on bailout bill"

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Worthington Daily Globe - "Franken, Coleman lay out concerns on bailout bill"

Finding rare common ground, GOP Sen. Norm Coleman and DFL challenger Al Franken said Tuesday that the $700 billion plan to bail out the financial industry should not be a "blank check," and agreed on several elements on what should be in the package.

But the two differed sharply on Franken's insistence that the plan freeze home foreclosures and allow bankruptcy judges to reset mortgages on primary residences, which Coleman argued would lead to higher interest rates.

The back-and-forth took place on the same day that Federal Reserve Chairman Ben Bernanke warned Congress that failing to pass the plan could lead to a recession with higher unemployment and increased home foreclosures. Under the legislation the administration is pushing, the government would be allowed to buy bad mortgages and other troubled assets held by endangered banks and financial institutions.

Franken said he wouldn't vote for the package unless it included several principles, including independent oversight by Congress, taxpayer equity stake in companies that are being bailed out, no "golden parachutes" for CEOs of such companies, and the freeze on home foreclosures.

"Not one dime should go to this bailout without independent oversight, real accountability and complete transparency," he said.

Franken also called for the establishment of a Financial Products Safety Commission, which would be charged with providing guidance to consumers on whether financial products such as mortgages are safe. But Franken said that not having that wouldn't be a deal-breaker.

Coleman, following a Republican Senate luncheon with Treasury Secretary Henry Paulson, said, "My concerns are focused on Main Street and not Wall Street," but that what happens in the financial sector affects all Americans.

"I do appreciate the urgency of the administration in the need to respond to the crisis, but I also believe that we have to make sure there are no blank checks here," he said.

Like Franken, Coleman said there should be no excessive compensation for executives of companies receiving a bailout, "because we're dealing with the federal credit card."

Asked about Franken's call for taxpayers to get equity share in such companies, he responded, "I think that's a good idea. I actually support taxpayer equity."

But Coleman knocked Franken's idea on freezing home foreclosures and allowing bankruptcy judges to reset mortgages on primary residences.

"That would hurt homeowners," he said. "You'd face less access to credit and higher interest rates."

Also Tuesday, Franken mocked Coleman for suggesting at a campaign event over the weekend in North Mankato that the federal government could make money on the bailout.

"The government could make 10 or 20 times what it pays on this, possibly," Coleman said, according to a story in The Free Press.

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