WASHINGTON -- Oregon Rep. Peter DeFazio blasted the Bush administration's plan for a $700 billion financial bailout Monday as a giveaway to Wall Street.

Congressman Peter DeFazio. (AP File Photo)

DeFazio, a Democrat, said the plan would benefit the same executives who created the financial mess in the first place.

"If we pass this bill as they proposed it, we'll do an incredible disservice to the American people," DeFazio said in a fiery speech on the House floor. "What if it doesn't work? You have the execs come out whole and they scoot the money offshore. What's the next step?"

As proposed, the bailout plan gives Treasury Secretary Henry Paulson the keys to the U.S. Treasury without oversight or restriction, DeFazio said. He called for a deliberative approach that avoids acting in haste -- as he said Congress did in 2002 when it gave President Bush authority to invade Iraq.

Gordon Smith

"We shouldn't be rushed into this. If it takes a week, two weeks, three weeks, a month, the world will wait," DeFazio said. "They'll wait for a thoughtful plan that cures the disease in addition to getting us beyond this initial problem. That's the job of this Congress. We should not be rolled by our Wall Street exec who is masquerading as secretary of the Treasury."

Sen. Gordon Smith, R-Ore., said the time to act is now.

"The panic that swept Wall Street last week cannot not be underestimated. This economic turmoil has threatened not just Wall Street, but also millions of people on Main Street," Smith said. "With Americans' retirement plans, mortgages and financial security at risk, we must act now to bring order and stability to our markets."

Smith, locked in a close re-election campaign, pledged to work in a bipartisan fashion to draft a package that will help restore confidence in the American financial system and protect Oregon homeowners facing the loss of their homes or retirement incomes.

"The proposal, however, cannot be a blank check that allows golden parachutes and executive compensation packages for bankers and investors that drove their companies into the ground, potentially leaving taxpayers with generations of debt," he said.

Smith's Democratic opponent, Oregon House Speaker Jeff Merkley, used similar language. In a statement issued minutes before Smith's, Merkley called on Smith to "reject a blank check proposal for the Bush Administration," and said Smith should demand that any bailout package include protections for homeowners, limits on executive compensation and market reforms to prevent a future crisis.

"Gordon Smith's support for deregulation was instrumental in causing this crisis," Merkley said, citing Smith's support for a 1999 law that deregulated the banking industry. The law was pushed by former Sen. Phil Gramm, R-Texas, and signed by President Clinton. It removed many restrictions on the actions of banks, investment firms and insurance companies and allowed the proliferation of new and unregulated banking practices, which many experts say contributed to the current crisis.

"Republicans in Washington are demanding a blank check to fix the mess they created and that is completely unacceptable," Merkley's statement said. "Real families are hurting in this economy and George Bush is only concerned about CEOs on Wall Street. Gordon Smith rubber-stamped the Bush policies that led to this mess, and I urge him to reject any blank check that puts special interests on Wall Street ahead of families on Main Street."

Merkley statement cited the 1999 law, known as the Gramm-Leach-Bliley Act, but did not mention Clinton's role in signing it.