Vote Underscores Bush's Loss of Influence

Once the decision was made, Bush left much of the early negotiating to Paulson, Federal Reserve chief Ben S. Bernanke and other senior economic advisers. A visit to Capitol Hill last week by Vice President Cheney was roundly panned as counterproductive.

Then, last Wednesday night, amid growing criticism of the plan, Bush took to the airwaves to warn that "financial panic" would take hold unless the plan was approved. The comments, which some Democrats likened to the now-discounted warnings prior to the Iraq war, did little to avoid a breakdown in talks during a White House meeting between Bush and legislative leaders the next day.

Vin Weber, a former GOP congressman from Minnesota, said just before yesterday's vote that Bush's alarmist rhetoric was likely an attempt to move votes at a time when the White House and Congress are held in low public esteem.

"In order to try to get Congress to do what you wanted it to do, you had to raise the threat level," Weber said. "There's no way this would happen if people thought the consequences were not dire . . . On the other hand, you have to look at the confidence issue. It's a fine line."

Not all Republicans think Bush deserves blame for the defeat. Former Bush press secretary Ari Fleischer said both Republicans and Democrats had serious ideological objections to a federal bailout. "If George Bush had 70 percent approval ratings, I think the vote would turn out the same way," he said.

Rep. Tom Davis (R-Va.), who voted for the bill, said Bush tried his best. "This is a weakened presidency -- there is no doubt," Davis said. "But he did what he could to alert us to the danger. I don't think you can really fault him at this point."

Staff researcher Madonna Lebling contributed to this report.