Corker Proposes a Phased-In Buyout

Tennessee Senator Bob Corker wants the federal government to take a more cautious approach in its response to the nation’s financial crisis.

Corker is a member of the Senate Banking Committee, which heard testimony today regarding a proposed 700-billion dollar government buyout of the failing mortgage securities that have been blamed with triggering the current situation. The plan was submitted by Treasury Secretary Henry Paulson, who repeatedly called the measure a “bare bones” proposal which would be fleshed out in time. He’s asking for immediate approval, to provide a sense of certainty to the market.

That would require Congress to trust Paulson and the rest of the administration with working out the details. Corker told the Secretary he’s not comfortable with that idea.

“If we were part of a venture board, if you will, up here listening to what is really today a concept–this is not really a deal–I think most of us in dealing with our own money would say, ‘come back and talk to us when you can put a little meat on the bones.’”

The Chattanooga Republican went on to echo Democrat Chuck Schumer in suggesting that Congress approve a first phase involving a fraction of the 700-billion dollars, with the rest contingent on the Treasury making a favorable progress report in January.