AZ-3 rivals agree on bailout

U.S. Rep. John Shadegg (R-Phoenix) and Bob Lord, his Democratic challenger in the 3rd Congressional District, have found common ground in their support of the bailout package that passed the U.S. House Friday and was quickly signed into law by Pres. Bush.

Lord and Shadegg both announced Thursday they supported the revised bill, which supporters say toughens protections for taxpayers but leaves much of the framework of the original proposal in place. Their reasons for endorsing the legislation were remarkably similar on key points, given the hostility that has pervaded the campaign so far.

Shadegg joined 262 other members of Congress in backing the bill, which passed with an overwhelming majority in a vote Friday morning. He voted against the original version, which narrowly lost a House vote Monday due to bipartisan opposition.

In explaining his decision, Shadegg said in a statement issued after the vote that the bill was "dramatically different than the original plan," and included changes such as eliminating the Mark to Market provision in the Sarbanes-Oxley Act and increasing the amount of backing accounts get from the Federal Deposit Insurance Corporation (FDIC).

Shadegg said that, given the challenges facing the economy, "I concluded Congress must act."

"I do not believe that the government should be in the business of purchasing troubled assets," said Shadegg. "However, in legislating, you never get what you want."

Shadegg said he believed his efforts helped shape the final outcome of the bill, and issued a stern warning to U.S. Treasury Sec. Henry Paulson, who Shadegg has said he wants to see fired.

"I have been outspoken in my criticism of Secretary Paulson and I remain concerned," said Shadegg. "It is now his job to make this program work. I will be watching."

Lord, in a statement put out the night before the vote, agreed with Shadegg on several points.

The Democrat also pointed to the change in the FDIC as a key factor in his support, and expressed a wariness of the Treasury almost as pronounced as the incumbent's.

"We have to be vigilant with oversight of the Treasury and serious about accountability on Wall Street," said Lord.

However, the challenger sought to link Shadegg to the root of the crisis, and specifically with Pres. Bush.

"We need to end the disastrous Bush economic policies that got us here in the first place," said Lord. "Going forward, we must reject the failed Bush-Shadegg economic policies that created this mess. It's time for new independent leadership and it is clearer than ever that Arizona deserves better."