Sen. Richard Shelby announced his own alternative bailout proposal Thursday afternoon, just as leaders of both parties were trying to reach a deal at the White House.
The top Republican on the Senate Banking Committee, Shelby has been extremely skeptical of the administration’s plan so far.
“Proponents of the Paulson plan are telling the American people we can solve this problem with a single bill,” Shelby said in a statement. “I don’t believe that is credible. We have a number of interrelated problems that need to be addressed in order of their significance.”
Shelby's plan calls for an enhancement of the government’s existing lending facilities and guarantee programs. According to Shelby, this would help stabilize money market funds and provide loans to troubled financial institutions without exposing taxpayers to massive losses.
“This will likely be a long and difficult process,” Shelby said. “We must recognize that now.”