SocraticGadfly: Progressive Dems may have alternative on bailout — if Pelosi allows it

September 30, 2008

Progressive Dems may have alternative on bailout — if Pelosi allows it

But, it may have its own issues — namely, that FDIC insurance is more illusory than real

Here’s an interesting tidbit. Many Democratic “no” voters either decided on their vote, or had their resolve firmed, after talking to former Federal Deposit Insurance Corp. Chairman Bill Isaac.


Apparently Isaac had some ideas, but Pelosi had “locked down” the bill, so he couldn’t offer them.

Meanwhile, the Senate may jump-start the House with a Wednesday vote on a bill similar to, but not the same as, the House version. I don’t know if Senate deliberation is still subject to cloture rules or not.

Even more interesting:

The same story says many House Republicans want the FDIC more involved. Now, current and former FDIC heads may offer different sides of the aisle different advice. But, Bill Isaac’s 2008 cycle campaign contributions are all GOP, so he’s not bringing anything partisan to the table in favor of Democrats.

What’s Isaac’s take? He says the FDIC needs to be more involved with “backstopping” institutions at risk.

BUT, if you’re like me, I’ll bet you didn’t know the FDIC insurance pool is just a fiction — per Bill Isaac.

So, do you really WANT the FDIC more involved?

Final thought; the fact that at least some conservative Republicans and some progressive Dems are on the same page makes me wonder if Pelosi was playing political baseball — but, only after she realized Boehner couldn't deliver his votes.

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