Lawmakers scramble to revise bailout bill

Congressional leaders scrambled this morning to find enough changes to sell the multibillion-dollar financial rescue to their rank-and-file, with long-distance prodding from John McCain and Barack Obama on the presidential campaign trail. Both McCain and Obama announced their backing for a plan that some House Republicans had pushed earlier: raising the federal deposit insurance limit from $100,000 to $250,000 in a bid to reassure nervous Americans and to shore up the economy. President Bush sought to avoid being marginalized, making another statement at the White House. "Congress must act," he demanded. Republican House aides said the FDIC proposal might be attractive to some conservatives who want to help small business owners and avert runs on banks by customers fearful of losing their savings. The leadership needs to find sufficient changes to attract about a dozen more votes, the number needed to avoid the kind of stunning defeat that supporters of a bailout suffered Monday. Another possible change to the bill would modify "mark to market" accounting rules. Such rules require banks and other financial institutions to adjust the value of their assets to reflect current market prices, even if they plan to hold the assets for years.

Louisiana banks not seeing impact of financial crisis

The nation’s intensifying financial crisis has confused and panicked consumers calling banks again to make sure they’re money is safe, but area bankers say it’s bank-to-bank lending that has Congress worrying about a credit freeze stalling the economy. “Loan growth is up in Louisiana,” says Bob Taylor, CEO of the Louisiana Bankers Association. “What’s happening on Wall Street in completely divorced with what’s happening in Louisiana.” Taylor says it’s an investment bank problem, but consumers just heard “banks” and panicked. Local banks are sound because they’re regulated, unlike investment banks, which deal more in stocks and are not FDIC insured. Still, he says area banks are reassuring fearful customers and ensuring their money is fully covered. It’s working, Taylor says, because no one has reportedly pulled his or her money from a bank. Collectively, bankers also are trying to clear up the public confusion. “Louisiana banks are well capitalized and don’t need those investment banks to do what we do here,” he says.

John Ducrest, commissioner of the Office of Financial Institutions, agrees they’re educating consumers that Louisiana banks are in good shape because they used sound lending practices. “Lending was up 4% in the last quarter, so our banks are lending money. Commercial lending is still healthy here,” Ducrest says. “The overall condition of banks in Louisiana is excellent with strong capital bases and funds to lend.” An estimated 13% of loans in Louisiana were subprime, and the state ranks 43rd in the nation for foreclosures despite the destruction of hurricanes Katrina and Rita.—Anna Thibodeaux

State to spend $1.2 million for Port Allen plant expansion

The state will pay $1.2 million to renovate an existing water well and install a new one near a chemical plant in Port Allen that is undergoing a $250 million expansion. Criterion Catalysts & Technologies says the new well ensures an adequate water supply for the facility and the surrounding communities. Louisiana Economic Development says the expansion will create at least 53 permanent jobs with an average salary of $59,000 and retain 17 current jobs. Criterion first announced its move to Louisiana in mid-2006 when it purchased Southern Ionic’s facility. When the expansion is completed next year the plant will make “several types of alumina powder as well as catalysts,” LED says. Alumina is used in the production of aluminum, certain chemicals, and in abrasives, among other uses.

Hurricane-related gas panic not affecting Louisiana

Hurricanes Gustav and Ike caused a lingering downtime in fuel production and distribution that has led to a fuel shortage in parts of the Southeast. Larry Wall, director of public relations with Mid-Continent Oil and Gas Association, says Louisiana benefits from a closer and more readily available supply of fuel, avoiding the rationing and closed pumps experienced in areas of Alabama, Georgia and Tennessee. Wall and Brandon Wright, manager of communications with Petroleum Marketers Association of America, say panicked consumers are buying more gasoline than they need, adding the supply and prolonging a shortage that could last weeks. "You have folks going in with several gas cans, trash cans even, and filling them with gasoline,” Wright says. Some retail stations covered pumps and chose to wait out the shortage rather than deal with accusations of price gouging. “If people would just settle back into normal gas purchasing, the problem wouldn’t be so deep or last so long,” Wright says. Shortly before Ike struck Texas, Louisiana consumers panicked over rumors of $5-a-gallon gasoline and caused a gas run. No such runs have been reported in the state since then.

Meanwhile, ConocoPhillips has its large Alliance and Lake Charles refineries back on line, The New York Times reports. But a few refineries, including an ExxonMobil facility in Beaumont, Texas, will not be fully repaired for at least several weeks. For a Business Report story on the hurricanes’ effects on state refineries, click here.—Anna Thibodeaux

Real Estate Weekly: Beaumont Lane property for sale

Real Estate Weekly has news about high-profile property for sale on Beaumont Lane behind the Catholic Life Center. Also, the city-parish's sewer rehab project will free up some land between LSU and downtown and the latest columns from Tom Cook and Brian Andrews. To read the newsletter, click here.

Jindal appoints eight to port commission

Gov. Bobby Jindal has appointed eight people to the Greater Baton Rouge Port Commission. While the governor selects all 15 members to the organization, six come from nominees made by the East Baton Rouge Parish legislative delegation, three come from nominees made by the West Baton Rouge Parish legislative delegation, two come from nominees made by the Iberville Parish legislative delegation, two come from nominees made by the Ascension Parish legislative delegation and two are nominated by the Louisiana Farm Bureau Federation. The appointments are: Kirt Bennett, Tim Hardy, Jerry Juneau, Roy Pickren Jr. and Randy Poche, all of Baton Rouge, and Angela Machen of Baker, who were all nominated by the East Baton Rouge delegation; Randy Brian of Zachary and Don Schexnayder of Port Allen, both nominated by the Farm Bureau.

IEM awarded $2.3 million Army contract

IEM has been awarded a $2.3 million contract from the Army's Chemical Material Agency to protect people living in areas near chemical weapon storage and disposal facilities. The Baton Rouge-based company will improve WebPuff, a support system that it first developed more than a decade ago for the Chemical Stockpile Emergency Preparedness Program. WebPuff provides models on potential chemical releases, which are used to determine the transport of weapons and the operation of incinerators.

Cazayoux, Jackson both playing Obama angle

State Rep. Michael Jackson is riding Barack Obama's coattails like a true Democrat, which he was until a few months ago. But in the race to capture the 6th Congressional District, Baton Rouge’s Jackson still bills himself as an “independent Democrat” and clings to a strategy that has the Democratic nominee for president pushing him over the top, due chiefly to an energized voter turnout.

That Obama has a highly visible role in the local congressional race shouldn’t be surprising. When Democrat Don Cazayoux became the incumbent following a special election in May, Republican forces blasted him for supporting Obama’s “radical agenda.” It forced the New Roads native to field, but not answer, questions about who he was backing. The guilt-by-association strategy didn’t work, and Cazayoux was elected—alongside another Democrat in Mississippi who was hit by similar attacks.

In an interesting twist of events, Obama endorsed Cazayoux earlier this month, to little fanfare. A Google search of Cazayoux’s campaign Web site reveals absolutely no mentions of the endorsement, or Obama. Katie Nee, Cazayoux’s campaign manager, says the congressman isn’t backing away from the nod. “I’ll take an endorsement over a logo any day,” she says, referring to Jackson’s campaign graphics that link him to Obama (which can be seen here).

For now, Cazayoux is touting one of his own polls that indicates he could lead by more than 2 to 1 with black voters (Cazayoux 59%, Jackson, 26%), figures the Jackson campaign question. As for the overall, Cazayoux has a 16-point lead in the survey. Following is Bill Cassidy, a Republican state senator from Baton Rouge, who polls 32% to Cazayoux’s 48%. Jackson holds tight to roughly 9% with the undecided weighing in at 11%.—Jeremy Alford

Give 225 your best shot

If you think you've got what it takes to make the December cover of 225, enter the magazine's photo contest. They are looking for images taken in 2008 that represent life in the 225 area code. The staff's favorites will feature in the magazine, and the photographer will receive cash and prizes. The deadline to enter is Oct. 15. For complete rules and entry information visit here.

Poll: Readers split on bailout vote

Daily Report readers were pretty evenly split on how Louisiana's Congressional delegation should vote on the $700 billion financial bailout plan. Forty-four percent say the representatives should vote against the bill, which was four votes more than the 44% who thought the delegation should vote for the bill. Twelve percent were undecided. Nearly 1,350 people voted in the survey.

Two Louisiana Congressmen voted in favor of the bailout: Jim McCreary, who is retiring, and Charlie Melancon, who faces no opponent in this year's election. Reps. Rodney Alexander, Charles Boustany, Don Cazayoux, William Jefferson and Steve Scalise, all who face re-election challenges, voted with the majority against the bill.

Today's question: What should Congress do next about the financial bailout?

News roundup: Home prices continue to drop … Hiring is expected to hold through the end of the year

Rate of plunge slows up: A closely watched index showed home prices tumbling by the sharpest annual rate ever in July, but the rate of monthly declines is slowing. The Standard & Poor's/Case-Shiller 20-city housing index fell a record 16.3% in July from the year-ago month, the largest drop since its inception in 2000. The 10-city index plunged 17.5%, its biggest decline in its 21-year history. No city in the Case-Shiller 20-city index saw annual price gains in July, the fourth straight month that's happened. However, the pace of monthly declines is slowing, a possible silver lining. Between May and July, for example, home prices fell at a cumulative rate of 2.2%— less than half the cumulative rate experienced between February and April. But there's "no evidence of a bottom," said David M. Blitzer, chairman of the index committee at S&P. … Few expecting to reduce workers: A survey of employment trends shows that 23% of businesses expect to add full-time permanent workers in the fourth quarter, and 10% plan on decreasing the number of employees. The report by CareerBuilder.com and USA Today shows that 63% of companies plan to keep the number of full-time workers steady in the fourth quarter. Southern companies have a little brighter hiring outlook; 25% plan to recruit full-time employees in the fourth quarter.