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Shadegg Comes Around on Bailout Bill

4:56 PM, Oct 1, 2008 • By BRIAN FAUGHNAN
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Roll Call reports that Congressman John Shadegg -- former chairman of the Republican Study Committee -- has signalled that he's likely to support the Senate market rescue bill when it comes to the House for a vote:

Rep. John Shadegg (R-Ariz.) signaled Wednesday that changes being discussed for the Wall Street bailout could prompt him to change his vote and support it.

Shadegg, interviewed on Arizona radio station KTAR, said raising the FDIC insurance cap from $100,000 to $250,000 and suspending the SEC's mark-to-market accounting rules would likely win his vote. "If they make both of those changes, I'd be inclined to vote for the bill, assuming there have not been any bad things added to it," he said.

The switch would be a major boost for Republican leaders - Shadegg is a former chairman of the Republican Study Committee, the conservative wing of the conference that helped sink the bill on Monday when 81 of its 106 members voted against it.

In the interview, Shadegg said he is "highly optimistic" the package will pass on its second try this week.

Shadegg is likely to bring the votes of several conservative House Republicans, significantly improving prospects for passage. With Senator Tom Coburn already on board, the package now has the support of two of the strongest pro-market, pro-Main Street, anti-big government Republicans in Congress. If the bailout is somehow defeated again, it's far more likely to be the result of more apathy from the House Democratic leadership, combined with happy talk from the liberal Democrat rank-and-file.