Times of Trenton - Smith, Hold Diverge On Bailout Package

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Times of Trenton - Smith, Hold Diverge On Bailout Package

Mercer County's congressional delegation split its vote yesterday on the failed $700 billion emergency bailout of Wall Street, as U.S. Rep. Chris Smith, R-Hamilton, helped scuttle the bill that had support from Rep. Rush Holt, D-Hopewell Township.

Smith said one of his main objections to the measure, which failed by a 228-205 vote, was that it would have been nothing more than a short-term fix that offered no certain long-term stabilization for the nation's financial system.

"We're talking about a major infusion of taxpayer funds without the concurrent systemic reforms that need to be put into effect," Smith said in an interview.

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Smith said he didn't have reservations over voting against the bill based on the warnings from Wall Street, the White House and congressional leaders that the measure's failure would gut the stock market. But he lamented that such fears were used to help build support for the bailout.

"I think it's unfortunate in the extreme that the expectations game was played," Smith said, adding that a bill of this magnitude shouldn't have been cobbled together and ready for passage within days.

Smith said Congress should stay in session to work on comprehensive reform, including greater transparency and establishing sound regulatory schemes that could get the financial markets working well again.

"If the market knew that true systemic reform was the priority of Congress ... I think that would give comfort that we mean business," Smith said.

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