Washington - Even as congressional leaders were announcing agreement today on the broad outlines for a $700 billion bailout of the financial industry, a number of House Republicans remained skeptical.
Republican Rep. Paul Ryan of Janesville was among those who unveiled an alternative proposal that would create a government insurance program for firms that hold mortgage-backed securities. By contrast, the leadership plan would allow the government to buy the bad loans from the banks.
"We have to do something to address this crisis," Ryan said during a hastily called news conference in the Capitol this afternoon. "We think the insurance model works."
Under the House Republican plan, the government would provide insurance for mortgage-backed securities for a fee. The plan also would aim to remove "regulatory and tax barriers" they say are "currently blocking private capital formation."
"There is capital sitting on the sidelines that should be unlocked," he said.