TEXT-House Speaker Pelosi's remarks on bailout plan

WASHINGTON, Sept 29 (Reuters) - Republicans blamed the failure financial industry bailout bill on Monday partially on harsh remarks by U.S. House of Representatives Speaker Nancy Pelosi against President George W. Bush and his Republican party.

In her remarks to the full House just before the vote, Pelosi, a California Democrat, slammed Bush and Republicans for "budgetary recklessness" and poor handling of the economy which has led to "chaos" in the financial system.

Democratic votes for the $700 billion bailout totaled 140, with 95 votes against, while 65 Republicans voted in favor of the bill, with 133 against.

Addressing California Democratic Rep. Ellen Tauscher, who was presiding over the House during the debate, Pelosi said:

"Madam Speaker when was the last time someone asked you for $700 billion?

It is a number that is staggering, but tells us only the costs of the Bush administration's failed economic policies -- policies built on budgetary recklessness, on an anything goes mentality, with no regulation, no supervision, and no discipline in the system.

Democrats believe in the free market, which can and does create jobs, wealth, and capital, but left to its own devices it has created chaos.

That chaos is the dismal picture painted by Treasury Secretary (Henry) Paulson and Federal Reserve Chairman (Ben) Bernanke a week and a half ago in the Capitol. As they pointed out, we confront a crisis of historic magnitude that has the ability to do serious injury not simply to our economy, but to the American people: not just to Wall Street, but to everyday Americans on Main Street.

It is our responsibility today, to help avert that catastrophic outcome.

Let us be clear: This is a crisis caused on Wall Street. But it is a crisis that reaches to Main Street in every city and town of the United States.

It is a crisis that freezes credit, causes families to lose their homes, cripples small businesses, and makes it harder to find jobs.

It is a crisis that never had to happen. It is now the duty of every member of this body to recognize that the failure to act responsibly, with full protections for the American taxpayer, would compound the damage already done to the financial security of millions of American families.

Over the past several days, we have worked with our Republican colleagues to fashion an alternative to the original plan of the Bush administration.

I must recognize the outstanding leadership provided by (House Financial Services Committee) Chairman Barney Frank (Democrat of Massachusetts), whose enormous intellectual and strategic abilities have never before been so urgently needed, or so widely admired.

I also want to recognize (Illinois Democratic Rep.) Rahm Emanuel, who combined his deep knowledge of financial institutions with his pragmatic policy experience, to resolve key disagreements.

Secretary Paulson deserves credit for working day and night to help reach an agreement and for his flexibility in negotiating changes to his original proposal.