Washington's U.S. Senate delegation split on passing the economic bailout bill today, with Sen. Patty Murray (D-Shoreline) voting "yes" and Sen. Maria Cantwell (D-Seattle) siding with the losing "no" vote.

The bill passed 74-25,with Cantwell being one of ten members of the Democratic caucus on the "no" side.

The U.S. House will vote on the bill Thursday. Last time it failed in the House by a narrow margin, and Washington's legislators were split 5-4 in favor.

See below for statements from the two Senators. 

Sen. Murray

"Today communities across America, and far from Wall Street, are hurting.  Families are struggling to fill up the tank, to afford health care and to send their kids to college.  And even if they've played by the rules, paid their bills on time and have good credit, they are now at risk because of the Bush Administration's failure to rein in Wall Street greed.

"People want to know if this crisis is real.  I have asked the same question of Secretary Paulson and Chairman Bernanke.  I have spoken with economic experts and Washington state business leaders.  Companies like Weyerhaeuser, Microsoft and Avista have made it clear that something must be done.  Homebuilders and farmers have contacted me asking Congress to act.  But, most compelling to me are the conversations I've had with Washington residents who want to buy a home or get student loans and are worried.  They are having a hard time getting credit and they don't know what to do. 

"Across the board there is deep and genuine concern about market collapse and the potential impact on jobs, credit and retirement accounts.

"But what makes taxpayers across the country so rightfully angry is that this situation was preventable.  I have heard from thousands of Washington residents who say, ‘don't bail them out.'

"I understand the anger of those who want to let Wall Street shoulder the consequences of their own misdeeds.  I am angry too.  But the reality is that those who created the problem won't be those who are hurt most.   The hardest hits will be taken by average Americans.

"We have already experienced a slowdown in home sales and construction.  Our hometown bank, Washington Mutual, has faltered and failed.  It's becoming more difficult to get a loan or to refinance a home.  But if this crisis worsens, credit could dry up completely - both for consumers and for companies seeking to make their payrolls.  The bottom line is that without a steady stream of credit, American businesses can't pay their workers and Americans will lose their jobs.  That's why a rescue plan is urgently needed.

"This is not the legislation I would have written.  It's not legislation I wanted to support.  But this is not the time to tell America's families, ‘Sorry, you're on your own' and hope for the best. And that's why I support the bill we'll vote on today.

"The President's plan was a non-starter.  We said no to his blank check.  No to free rein with billions of taxpayer dollars.  No to golden parachutes.  What we hope to pass today is a more prudent agreement to anchor rescue dollars to strict Congressional oversight and review by independent economic experts.  We added taxpayer protections including help for families hit by the foreclosure crisis and plans to recoup money from any institutions that see a profit.  And in the end, we hope that most, if not all of the taxpayer money we're investing will be returned once this crisis comes to a close.  

"Congress has to be vigilant in our oversight of how this law is implemented.  Every transaction that takes place regarding this funding will be on the Internet for all Americans to see.  And I strongly support the FBI's investigation into the current crisis on Wall Street.  If fraud and criminal activity are uncovered, the individuals responsible must be prosecuted to the fullest extent of the law.

"We also have to take a hard look at the factors that brought us to this point and seriously address them.  Congress must hold hearings on the causes of this crisis and the regulation reform that is desperately needed.  The next administration has to work with Congress to pass and implement new regulatory measures so that taxpayers are never put in this terrible position again.

"This package is not a cure-all.  It's an attempt to keep an already bad situation from getting much worse. 

"Americans who are hurting today will still be hurting tomorrow and it will take both investment and honesty to get our economy back on track.  We've seen where a ‘you-can-have-it-all' attitude has left us. The next administration will inherit this economic crisis along with many other serious challenges.  I hope our new President is honest with the American people about where we stand and what it will take to move America forward. 

"We know what it will take to move forward and get back on our feet.  We have to invest in the infrastructure and education that creates economic growth and jobs. We have to value our workforce and find a way to make health care affordable and accessible.  We have to invest in research and development and reward innovation.  We have to implement a smart, forward-looking energy policy that ends our addiction to foreign oil once and for all.  It's time to put America's families first and restore their faith that government works for, not against, them.

"I grew up with a country at my back - one that when my own father got sick and could no longer work was there with Pell grants and student loans and even food stamps when we needed them.  I will always remember that.  I will support this rescue package because the American dream of owning a home or going to college is simply too important to take a back seat to politics or to be put at risk by the misdeeds of Wall Street."

Sen. Cantwell:

WASHINGTON, D.C. -U.S. Senator Maria Cantwell (D-WA) issued the following statement after the vote on the economic rescue and tax extenders package.  Cantwell voted no.  The measure passed by a vote of 74 to 25:

"The people of Washington state sent me here to fight for sound fiscal policy. I have led the fight for taxpayers in my state to get the fairness they deserve with the state sales tax deduction. I have led the fight for rural communities in my state and across the country to be treated fairly with payments for the federal land in their counties. I have fought long and hard to break the partisan stalemate on a bold new clean energy tax policy and unleash the power of solar and renewables.  I support these provisions in the bill.

"And while I put my full support behind these tax relief measures, I believe that bold action is needed to solve our current financial crisis. I am just not for this action. I am in favor of putting the full faith and credit of the U.S. Government behind solving this financial crisis, but I do not support turning the keys of the U.S. Treasury over to the private sector. I don't believe it's the government's job to pick winners and losers in corporate America.  

"I advocate that we take three immediate actions to not only get our capital markets back on a stable footing, but ones that get our country back on a path to economic recovery. One, have the Department of Treasury make equity investments in financial institutions so taxpayers get a share of the good assets as well as the troubled assets. This can ensure better protection for the taxpayer. Second, we should immediately launch both a Congressional oversight committee and a private, independent panel to identify the culprits and devise regulatory reforms to correct the problems that caused this crisis. Third, we must take action to stabilize housing prices for all Americans to stem the tide of foreclosures.

"While there are parts of this emergency rescue bill I am supportive of, such as expanding FDIC bank deposit coverage to $250,000 and implementing more reasonable accounting rules, I am not supportive of a structure where the government only gets companies' bad assets. This approach leaves the government with less resources, the troubled companies with less working capital, and in the end may not solve the market's underlying financial problems. If the government were to make more traditional cash equity infusion into these companies it would spur ten to twelve more times private sector investments into the stressed capital markets."

Cantwell delivered the following remarks on the Senate floor Wednesday evening:

"Mr. President, I don't think 5 minutes would possibly be enough time for me to explain all the things I would like to say. I am sure I could spend an hour talking about credit default swaps. I am sure I could spend 2 days talking about the lack of transparency in the financial markets.

"I am sure I could spend a lot of time explaining what I think is the right thing we should do to put as much liquidity into the markets as possible. So I will try to be succinct.

"I came to the Senate knowing what it is like to take a tough vote. To make the decision that is right for the American public. It's most important to do the right thing. I also know what it is like to see millions of dollars in the stock market go away and watch a stock bubble burst.

"I also know what it is like to stand on the Senate floor, as I did 3 years ago, when someone tried to cram legislation in the Defense authorization bill to open up drilling in the Arctic Wildlife Refuge, and I said then that is was the equivalent to legislative blackmail.

"I am not going to vote for this legislation tonight based on whether someone crams in tax credits, for which I actually have fought so hard. I am going to render my decision based on what I think is important for the American people.

"I think there is something that is missing in our discussion. I applaud Chairman Dodd who has worked hard on the Banking Committee. I applaud my colleague who just spoke, who spoke eloquently about the need to do something.

"But the problem with the legislation before us is that it is choosing winners and losers in corporate America. It is inserting the Federal Government in a role in which they decide, along with the private sector, exactly how funds should be allocated.

"I am for the full faith and credit of the U.S. Government backing these institutions. What I am not for is turning the keys to the Treasury over to the private sector.

"There is much we could agree on tonight. We could agree on the new changes to the FDIC rule. We could agree on mark to market accounting changes and to bringing better marketing and accountability to the system.

"We could agree on the up-tick rule and other predictability measures that help the market understand that there is a broad commitment by this institution to do something to help stabilize the markets.

But I am very concerned about the "pick here, pick there" approach that has transpired in the last several weeks.

"I ask you to just think of one institution, in my State, Washington Mutual -- which I would not necessarily applaud for its subprime lending rates or for its use and backing of credit default swaps, but I would ask you to consider the fact that as that institution was forced into sale by this Government,

"Who were the winners and losers in that?

"J.P. Morgan got the assets of that institution and benefited from that. In fact, J.P. Morgan predicted to me on a conference call the night they acquired Washington Mutual that after one year with their investment, they would have an over $500 million on that investment. That is a 27 percent returned in one year.

"The FDIC got some money out of that, too. And then to say nothing about the over 60,000 shareholders who were wiped out.

"My complaint is: where is J.P. Morgan who should be standing up for the retirement plans, the deferred compensation plans, and other packages that the employees at that company were due?

"It is very convenient for us to now choose that we are going to add to J.P. Morgan's bottom line. In fact, if we would instead do what I am suggesting, we could have an equity proposal instead of having TARP, the Troubled Asset Relief Program, as the roof over America.

"Instead, we could have an equity program where the United States would leverage our capital and spur 10- to 12 times the private sector investment at the same time, our Nation would be better funded, better prepared, for the onslaught of trouble that is still going to remain after we pass this legislation.

"I could not even get my amendment to be considered.

"So, so much for the transparency of the Senate.

"I am going to continue to work for this idea, for equity, for a more leveraged position, and that we do the traditional role that Government has done time and time again: to use our equity to leverage the private sector to secure our economy.
 
"Thank you Mr. President, and I yield the floor."

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