Reid: McCain to support bailout

Republican presidential nominee John McCain will support a proposed $700 billion bailout of the financial markets, Senate Majority Leader Harry Reid (D-Nev.) announced Tuesday evening.

Sen. McCain’s (Ariz.) support of the package had been uncertain as a growing number of Republicans criticized it harshly.

{mosads}Reid specifically challenged McCain on Tuesday to take a position on the bailout package.

“I got some good news in the last hour or so … it appears that Sen. McCain is going to come out for this,” Reid announced.

The McCain campaign did not immediately respond to a request for comment.

Former Speaker of the House Newt Gingrich (R-Ga.) said earlier in the day that any lawmaker who votes for the Bush administration's bailout package would face defeat in November.

Sen. Richard Shelby (Ala.), the ranking Republican on the Banking Committee, also criticized the package.

Shelby told Treasury Secretary Henry Paulson on Tuesday morning that “what troubles me the most is that we have been given no credible assurances that this plan will work.”

The crescendo of Republican complaints prompted fears among Democrats that the package may not have enough GOP support to pass.

Democratic presidential nominee Barack Obama on Tuesday said he would only support a bailout of the financial markets if it provides the necessary oversight and protects taxpayers.

Reid also told Senate colleagues that he expects soon to take up a continuing resolution funding the government beyond the end of fiscal 2008, as well as an economic stimulus package in the next few days.

Reid said the House would soon pass both measures and send them to the upper chamber.

Reid said Congress would likely pass the defense appropriations bill as part of the continuing resolution (CR).

“The latest word I got is the defense appropriations bill is going to be in the CR, and that is extremely important if that’s the case.”

Reid also pledged to pass the defense authorization conference report before Congress adjourned.

“We got good news today: The defense authorization conference report has been completed, and we’re going to finish that before we leave,” he said.