Schumer: Feds May Have Underestimated Political Process On Bailout

Sen. Charles Schumer told reporters on Tuesday that Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke may have underestimated the political calculations involved when they sent over their bailout proposal for congressional approval.

“I think it is clear we are not going pass this [bailout] as they drafted it,” Schumer said. “I hope they see that on both sides of the aisle.”

Schumer said he was encouraged that the two administration officials were “open to suggestions” on changes to the plan, but cautioned them to not to underestimate the political calculations involved.

“I think in certain sense, they may not have a full understanding of the political process,” Schumer said. “It was, ‘well I need this, trust me.’ And maybe that is how it worked in the private sector, but it doesn’t work that way here.”