Bachus rips financial reform legislation

WASHINGTON, June 12 (UPI) -- A top congressional Republican who supported the 2008 federal bailout says new Democratic legislation for financial reform sets up future U.S. bailouts.

Rep. Spencer Bachus of Alabama, the top Republican on the U.S. House Financial Services Committee, told C-SPAN's "Newsmakers" in a taped interview that the Troubled Asset Relief Program was necessary at the time but it was a political "near death experience," The Hill newspaper reported.

New Democratic reform legislation institutionalizes future bailouts, he contended.

"A lot of people who I respect said you have to act. So we did act. I don't know what would have happened if we hadn't," Bachus told C-SPAN. "I imagine most economists said it needed to be done. I think most of those same economists say now if you continue to do this you'll create moral hazard by the bucket load."

The Hill said Bachus is one of the Republicans on the conference committee, which is charged with finalizing a bill that targets Wall Street excesses. But he and other House Republicans unanimously opposed the version that passed the U.S. House in December.

"There are just too many things; it is too intrusive," he said, and not many Republicans would support the legislation.

The conference process began Thursday and reconvenes Tuesday.