74 SENATORS VOTE IN FAVOR INCLUDING GRAHAM, DEMINT REMAINED OPPOSED

The U.S. Senate voted to pass a significantly altered version of the proposed $700 billion bailout bill, which failed to clear the House earlier this week. The “Dodd Amendment” — a new version of the bill which had to be tacked onto another piece of legislation as amendment in order to bypass a Constitutional requirement that it must first pass the House — was approved by a final vote of 74-25.

Sen. Jim DeMint voted against the bill, but still hasn’t offered much in the way of an alternative. South Carolina’s senior senator, however, supported the rescue plan, calling it “an unpleasant but necessary choice.”

Both presidential candidates, Republican John McCain and Democrat Barack Obama voted in favor of the amendment’s passage. The amendment will now move onto the House.

Graham said he was happy to see the Senate act decisively and pass the legislation.

“The crisis is real and is beginning to have a real, negative impact on Main Street America,” Graham said. “Over the past few days, I have heard from all corners of our state the dire consequences of congressional inaction. Businesses – both big and small — are finding it increasingly difficult to obtain loans to meet operating expenses and fund expansions. Some of the oldest businesses in America stand on the brink and people will lose their jobs.”

Graham noted the legislation has dramatically changed since it was first introduced. Over time and as the economy improves, the taxpayer will recoup money and collected funds will be go toward debt retirement — not shady groups like ACORN.

The current bill passed by the Senate includes important taxpayer safeguards such as an oversight board to review the governments acquisitions of troubled assets, limits on executive compensation packages and a prohibition on ‘golden parachutes’ for failed executives at troubled firms. A ‘clawback’ provision — which allows the government to recover any bonus or incentive compensation paid to a senior executive based on materially inaccurate information — is also included.

Stuart M. Butler and Edwin Meese II, in a Heritage Foundation paper Wednesday, echoed Graham’s concerns.

“Financial markets in the United States and around the world face a dire emergency requiring urgent and decisive action,” they wrote. “Some key parts of the credit market are on the verge of gridlock, resulting not just in the collapse of major financial institutions but also in credit disruption that is severely weakening the long-term prospects of non-financial companies. And while this is currently most visible in Wall Street and in the financial sector, it is only a matter of time before the fallout hits Main Street, with potentially devastating economic effects for typical American households.”

If passed by the House, the legislation would create an increase from $100,000 to $250,000 in Federal Deposit Insurance Corporation insurance on bank accounts. The Securities and Exchange Commission has also issued a revision of ‘mark to market’ accounting practices.

These provisions taken together are aimed at boosting consumer confidence. But they served another purpose as well. They inevitably strengthened the legislation and helped bring additional Senators on board.

“It was crafted to ensure that any purchases or loans by the government will be backed up by hard assets,” said Graham. “Taxpayers also will not subsidize multi-million dollar buyouts for CEO’s and other top managers who created this problem.”

A number of South Carolina editorial boards agreed prior to Wednesday’s vote.

The Greenville News said, “Congress failed America with Monday’s vote.” The Charleston Post and Courier blamed House Speaker Nancy Pelosi for derailing the bill, while the Aiken Standard reminded readers that, “The proposal was not a bailout for Wall Street, but an instrument that would give Main Street the security it needs to flourish.”

While he was excited about tonight’s outcome, Graham cautioned that this vote was just the beginning.

“My primary concern has always been that with the failure of lending institutions credit would dry up,” said Graham. “When that happens, reasonable rate loans to consumers and businesses become scarce. It takes a toll as South Carolinians increasingly find it harder to get a loan for a new car, expand a business, or attend college on student loans. Unfortunately, we have many difficult days ahead as our economy tries to regain its footing. This package will not solve all of our economic problems. But without it, the American taxpayer will face even greater exposure.”