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Defazio Introduces Bailout Alternative, With Progressives

Springfield Democratic Congressman Peter Defazio has taken a visible role in Washington this week, pushing against the $700 billion plan to rescue Wall Street. Then Tuesday, he floated the idea of an alternative bill. Ethan Lindsey reports.

Defazio was one of 95 Democrats who voted against the failed bailout bill.

Even more Republicans voted no – they complained that it was a government overreach in the free market.

But the seven Democrats who gathered with Defazio to announce the new plan say their problems stemmed from the lack of financing and oversight.

Defazio says his proposal includes more regulation and could add a funding source, possibly charging Wall Street investors a teeny-tiny fee on every transaction.

Rep. Peter Defazio: “If there’s a no cost, or low cost alternative for the taxpayers, then we should take it. We have a working paper, it's not done yet."

Defazio says he is working with Republicans on drafting the actual legislation.

Still, the previously-defeated bailout may have more bipartisan support than Defazio’s measure.

The Senate is considering voting on its own version of that bill; and the House leadership has indicated it won’t vote on it again until later this week.

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