McConnell takes a quieter approach on bailout

The prominent role that House Republican Leader John Boehner (Ohio) has assumed in the debate over the Wall Street bailout has made his Senate counterpart, Mitch McConnell, seem conspicuously absent.

Senate Minority Leader McConnell (R-Ky.) has made very few public statements about the bailout, and has kept a low profile amid all the negotiations and debate. That has prompted speculation about whether he really supports Treasury Secretary Henry Paulson’s call for the rescue package.  

{mosads}On Friday, an unexpected defender put that question to rest.

“The banking issues are complex and difficult,” Senate Majority Leader Harry Reid (D-Nev.) told reporters. “Sen. McConnell and I have talked on a number of occasions. He wants this thing to be completed. So do I.”

This isn’t the first time McConnell has stayed below the radar on a contentious issue that has split the Republican Party. McConnell took a low-key stance when his chamber debated a broad immigration bill that President Bush backed but most congressional Republicans objected to — a situation much like the current debate over the proposed $700 billion Wall Street bailout.

Reid was asked about McConnell’s scant profile on the bailout Friday. While the two have been known to spar over political tactics, Reid took the unusual role of coming to McConnell’s defense.

“But I think, realistically, Sen. McConnell and Sen. Harry Reid are not going to be much help in the delicate negotiations dealing with warrants and all these other things,” Reid said.

“Outsiders should stay out of it,” he said.

But that couldn’t keep politics out altogether on the Senate side.

Shortly after Reid played down McConnell’s low profile, McConnell addressed reporters to respond to Democratic accusations that Republican presidential nominee John McCain had derailed progress on the bailout by requesting a meeting with President Bush and congressional leaders on the subject.

McConnell told reporters Friday afternoon that Sen. McCain (R-Ariz.) had played a constructive role in the discussions about how to solve a looming financial crisis.

Senate Democrats, however, have accused McCain of “injecting presidential politics” into the talks and slowing progress.

McConnell has taken a markedly different approach from his House counterpart.

Boehner sent a letter to House Speaker Nancy Pelosi (D-Calif.) outlining an alternative plan for solving hundreds of billions of bad investments on Wall Street that threaten to create a national credit shortage.

Boehner outlined a set of House GOP “economic rescue principles” that envision a rescue package radically different from what Paulson proposed.

House Republicans object to the use of federal funds to purchase distressed assets. Instead, the House GOP has proposed an insurance plan that would be funded by investors who hold mortgage-backed securities.

Reid shot down Boehner’s proposal.

“Paulson has said it won’t work,” he said. “That’s what he told us.”