U.S. Sen. Richard Burr doesn’t think the Bush administration is making the right call on the financial bailout.
Burr, a Winston-Salem Republican, supported the bailout when Congress passed it this fall. But today he questioned Treasury Secretary Henry Paulson’s decision to reverse earlier plans on the $700 billion financial bailout, reports Barb Barrett.
Paulson announced that the federal government will not focus on buying troubled bank assets, but rather will turn to other financial entities that lend money.
“The only reason I supported the federal government in the rescue business was the fact that you have no economy if you don’t have a financial system,” Burr said. “Now, I’m questioning the secretary’s most recent decisions to get outside the soundness of the financial structure and to begin to invest in winners and losers.”
Paulson talked Wednesday of the importance of backing the fianncial programs that support credit cards, student loans and car loans.
“Which are nice buzzwords,” Burr said, “but (the federal finance leaders) have washed their hands, it seems to me, to somewhat right the mortgage market. And the mortgage market is still somewhat the problem.”
Burr continued: “There’s not transparency in what (Paulson) is doing. This is not what I think Congress signed off on, and if he feels he’s got the flexibility we need to look at removing some of the flexibility.”