Bush: Nation's Leaders Acted Boldy On Bailout; Economy Still Faces Serious Challenges

October 3, 2008 3:32 p.m. EST

Washington, D.C. (AHN) - President George W. Bush thanked Congressional leaders Friday afternoon for passing a historic legislation bailing out the nation's financial firms.

Speaking from the White House, the President acknowledged "there were moments this week when some thought the federal government could not rise to the challenge," but said bipartisan efforts in the House, Senate and his administration made approval of the bill possible. He specifically thanked House Speaker Nancy Pelosi (D-CA), House Minority Leader John Boehner (R-OH), House Financial Services Committee Barney Frank (D-MA) and House Minority Whip Roy Blunt (R-MO).

"By coming together on this legislation, we have acted boldly to help prevent the crisis on Wall Street from becoming a crisis in communities across our country. We have shown the world that the United States of America will stabilize our financial markets and maintain a leading role in the global economy," Bush said.

The President said it will take time before the bailout is implemented since "careful analysis and deliberation" is needed to ensure tax dollars are not wasted. He warned that "our economy continues to face serious challenges," citing the Labor Department's report earlier that day saying the economy shed 159,000 jobs in September, the ninth consecutive month of job losses and the worst in five years.

"It will take more time and determined effort to get through this difficult period. But with confidence and leadership and bipartisan cooperation, we'll overcome the challenges we face, return our nation to a path of growth, and job creation, and long-term economic prosperity," the President said.

By a 263-171 vote, the House passed the measure Friday afternoon after a morning debate that saw Pelosi taking a more cautious approach. She was strongly criticized for making a "partisan speech" before Monday's vote, which defeated the measure, 228-205, and caused the Dow to drop nearly 800 points. The drop represented $1.2 trillion in losses.

Friday's vote had 172 Democrats supporting the legislation, or 32 more from the previous vote. Republicans were able to gather much more than the 80 votes needed, bringing 91 members to cast yeas.

Boehner issued a statement after the vote calling the bill "flawed but necessary."

"The financial crisis is not a failure of the free-market system. It is a failure of a broken Washington, and a government culture that allowed executives at Fannie Mae and Freddie Mac and other firms to run amok," he added. "House Republicans... secured numerous reforms on behalf of American taxpayers, such as raising the FDIC insurance cap, the SEC's change to mark-to-market rules for certain assets that have worsened the credit crisis, and an insurance program that forces Wall Street to bear a financial burden in the rescue package."

The approval comes after the Senate's 74-25 vote passing the measure on Wednesday.