Brady Blamed for S&L; Bailout Costs
Republican Rep. Bill McCollum of Florida on Tuesday accused Treasury Secretary Nicholas F. Brady of cynically escalating thrift cleanup costs for political purposes.
“I am outraged,” McCollum, who is vice chairman of the House Republican Conference, said at a news briefing.
McCollum said his proposal, which Brady opposes, would save an estimated $18 billion in thrift cleanup costs by preventing the failure of 30 thrifts.
He said Brady opposed the plan for fear that it would be seen as a bailout of thrift stockholders and prove too politically costly this election year.
Desiree Tucker-Sorini, a Treasury spokeswoman, said Brady believes that McCollum’s proposal would impose substantial and unwarranted costs on taxpayers. The treasury secretary also rejects the charge that his opposition to McCollum’s proposal is political, she added.
“We think the funding proposal we have put forward is the least costly and most efficient way to get this done,” she said.
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