6th District Challengers Ambivalent About Plan

Press Release

6th District Challengers Ambivalent About Plan

By Jeff Mellott

Challengers for the 6th Congressional District seat are approaching the proposed $700 billion federal bailout of failed lenders with caution and a desire for additional oversight.

Contacted early Wednesday for comment on the evolving situation, the challengers said they are reluctant to have taxpayers pay for failed lending policies.

Democrat Sam Rasoul of Blue Ridge and Janice Lee Allen of Bridgewater are challenging Rep. Bob Goodlatte, R-Roanoke, who is seeking his ninth two-year term in the Nov. 4 election.

Bailout Proposal

Congress is considering a plan by the Bush administration to bail out the mortgage industry and its insurers to the tune of $700 billion.

Under the proposal, the government would essentially take over the debt.

The plan is being criticized across the political spectrum either for too much government intervention in the marketplace or for not providing enough oversight to prevent such problems from recurring.

Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson have told Congress that quick approval is needed to stabilize the economy.

If the federal government has no choice but to bail out mortgage lenders and insurers, say Rasoul and Allen, taxpayers should be protected as much as possible.

"The problem is, of course, is that without some type of plan or bailout, we won't be able to save Main Street. We will cripple our economy," said Rasoul, 27, who owns several small businesses.

Allen, 56, who owns a real estate business, said she favored the concept of a bailout.

"I would vote for the idea of selling the mortgages and putting that income back into the hands of the citizens of the United States," Allen said.

Increased Oversight

Both candidates support more oversight over lending practices.

Special interests and their friends were too busy making money and did not care about the repercussions of their actions on others, Rasoul said.

"It's not even about Republicans and Democrats anymore," Rasoul said.

Money and the access it brings to lawmakers have created this environment, he said.

"They took the voice away from Middle America," he said. "They took the voice away from objective reason. That is what has led us to this point."

Wait And See

The only comment offered by Goodlatte, 56, on the bailout came in a prepared statement.

"The recent instability in our economy and our financial markets is of great concern to me and my constituents," Goodlatte said.

"I continue to study the various proposals, follow the congressional hearings on this serious matter, and ask the important questions regarding any bailout of our financial institutions.

"It is important that all members of Congress work together on this legislation and not prejudge it until the final product is brought forward for debate and a vote on the House floor."

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