"After reviewing the administration's proposed bailout plan, I believe it is completely unacceptable," [South Carolina Sen. Jim] DeMint, chairman of the Senate Republican Steering Committee, said in the statement. "This plan does nothing to address the misguided government policies that created this mess and it could make matters much worse by socializing an entire sector of the U.S. economy."
"This plan fails to oversee or regulate the government failures that led to this crisis," DeMint added.
Treasury Secretary Henry Paulson has pressured congressional leaders to approve the bailout as soon as possible to prevent panic from spreading across the U.S. and world financial markets.
But Paulson’s ambitious schedule may become derailed because of growing opposition from conservative Republicans and rank-and-file Democrats.
"This plan will not only cause our nation to fall off the debt cliff, it could send the value of the dollar into a free-fall as investors around the world question our ability to repay our debts," said DeMint. "It's also very likely that this plan will extend the cycle of bailouts, encouraging other companies to behave in reckless ways that create the need for even more bailouts, triggering an endless run on our treasury."