Hastings refuses to budge, votes no on bailout

U.S. Rep. Doc Hastings stuck to his guns Friday, voting a second time this week against a massive bailout of the financial services industry that he believes sets a dangerous precedent for federal government intrusion into private markets.

"The bill had not changed dramatically enough to warrant my support," Hastings said by phone from Washington, D.C., just before he boarded a plane to return home.

He stressed that his opposition was solely to the bailout, and he agrees with the tax-relief provisions that were tacked on. Those "frankly should have stood on their own," he said.

Philosophically, Hastings says he opposed the bailout because it would essentially keep profits for the financial services industry private while making potential losses a public responsibility.

"I don't believe in that concept," he said. "It potentially puts the taxpayers at risk for $700 billion, and it also is an intrusion into the private sector."

Hastings had unusual company in Friday’s “no” vote.

Rep. Jim McDermott, D-Seattle, switched his vote after supporting the initial bill Monday. McDermott, the state’s most liberal Democrat, said the Senate changes — primarily a series of tax breaks costing more than $100 billion — made the bill worse.

“The Senate dug an enormous ditch alongside Main Street, and they want the House to drive into it. That is exactly where the president has driven this economy over seven years,” McDermott told the Associated Press.

After nearly a week of intense lobbying, the measure ended up passing handily today by 263-171.

Despite the “no” votes, the state will receive some of the perks included in the bill at the last minute to make it more palatable to conservative Republicans in Western states. For example, public schools in Yakima County are in line for $3.5 million in Secure Rural Schools funds, a program designed to offset losses from timber sales on public lands that pay for school construction.

Hastings last month offered an amendment to renew those payments, but it was defeated by Democrats.

In a prepared statement on his bailout vote, Hastings said he believes the measure gives too much power over the markets to the Treasury Secretary and that “this action sends a message to Wall Street and others that if they make poor decisions or take risky gambles that fail, that the taxpayers will be there to foot the bill and bail them out.”

The Pasco Republican acknowledged the difficulties businesses and financial institutions are grappling with and that Congress needed to act to make sure credit remains available to consumers and businesses. But, he added, “like like Americans across our country, I’m mad as hell that the reckless actions of Wall Street created this situation.”

“In the stampede to pass a bill, there’s never been consideration of, or a willingness to consider, any other options or approaches other than giving $700 billion from the taxpayers to the Treasury Secretary to purchase whatever bad debt he deems necessary. I believe this rush to act has made addressing the economic problem at hand more difficult.”

Yakima Herald-Republic reporter Pat Muir contributed to this report.

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