On banks, Dole and Hagan agree once more

WASHINGTON -- Republican U.S. Sen. Elizabeth Dole and her Democratic challenger, Kay Hagan, welcomed President Bush's relief package for banks.

Dole, in a prepared statement, said the steps seem to be a way to boost credit without putting taxpayers at much risk.

"I applaud the Treasury for changing course by taking steps to inject liquidity into financial institutions such as Wells Fargo/Wachovia and Bank of America," Dole said. "This seems more sound than spending taxpayer dollars on buying up assets and hoping to turn a profit later.

"While I dislike these expensive interventions into the markets, this course of action does seem to be less risky to the taxpayers and should free up credit to help jump-start the economy. I still feel it is vital to take steps to provide direct relief to individuals, such as allowing Americans to access their 401k/Individual Retirement Accounts without taxes and penalties."

Hagan, a state senator from Greensboro, called Bush's announcement "an important confidence-building step."

"I'm pleased with the provisions giving taxpayers an ownership stake in the investment of their tax dollars, but the fact remains that not enough is being done for families and small businesses on the front lines of this failed Bush economy," Hagan said in a prepared statement. "As the finishing touches are being put on Wall Street's rescue plan, we need to get busy on a rescue plan for America's middle class."

Bush announced Tuesday that $250 billion of the $700 billion bailout bill approved by Congress will be used to buy equity in nine banks. Also, the FDIC will insure bank-to-bank loans and guarantee non-interest-bearing accounts in the banks and thrifts it now insures.

Dole and Hagan opposed the bailout plan.