March 9th, 2009
04:37 AM ET
6 years ago

Some banks should be allowed to fail, say two top Republicans

'We bury the small banks -- we've got to bury some big ones,' said Shelby Sunday.
'We bury the small banks - we've got to bury some big ones,' said Shelby Sunday.

WASHINGTON (CNN) - Two top Senate Republicans said Sunday that banks shouldn't be able to count on any more bailout money - and that the federal government should let some of them fail rather than distribute further funds to keep them afloat.

"Close them down, get them out of business. If they're dead, they ought to be buried," Sen. Richard Shelby, the Ranking Republican on the banking committee, told ABC's This Week. "We bury the small banks - we've got to bury some big ones, and send a strong message to the market." He did not mention any banks by name, although he responded to a question about Citigroup by noting that "Citi's always been a problem child."

Former GOP presidential candidate John McCain told Fox News Sunday that he did not think President Obama "made the hard decision, and that is to let these banks fail." He did not call for nationalization of troubled financial institutions, which many Republicans oppose, but said their assets should be sold. "Unfortunately, the shareholders and others will take a beating," he said.


Filed under: John McCain • Richard Shelby
soundoff (417 Responses)
  1. Peter

    Richard Shelby should resign so who cares?

    March 8, 2009 09:54 pm at 9:54 pm |
  2. ines

    If I weren't completely repulsed by the Republican obstructionist-no agenda stance, I am now. And I am an ex-life long republican.

    March 8, 2009 09:55 pm at 9:55 pm |
  3. Jimmy, AK

    It's either lose jobs now or lose tons of more jobs later.

    March 8, 2009 09:56 pm at 9:56 pm |
  4. Tom in CA

    I audited S&Ls during the RTCs takeover of 100s of them. At that time there was now such thing as "Too Big To Fail." If the S&L didn't meet capital requirements, then the RTC took them over.

    It didn't matter the size!

    The Feds should be doing the same thing today and tomorrow!

    AIG = fail
    Citibank = fail
    etc....

    March 8, 2009 09:56 pm at 9:56 pm |
  5. Franky

    "A sheriff's investigation revealed that on a weekly basis, Yeomans would spend $25,000 on her credit card and then pay off the balance the following Monday with company funds," according to a sheriff's department statement."

    Boy, that is so wrong on so many levels, I hope this is just a one time thing, just please don't do it...unless you're Congress, LOL!! Na'h, I'm playing...

    March 8, 2009 09:57 pm at 9:57 pm |
  6. Jon S.

    Amazing how heartless the GOP is. Must be nice to be rich and able to blithely tell small businesses they should just give up. Along with the GOP governors who don't want the stimulus money, I think the GOP is way ahead of the calendar, as far as the Grinch-ing goes. I think the governors who tell Obama they don't want the money shouldn't get any, then have to face the wrath of their constituents.

    March 8, 2009 09:58 pm at 9:58 pm |
  7. bernie

    After were through propping them up we need to chop them up. I never want to hear "To big to fail." ever again.

    March 8, 2009 09:59 pm at 9:59 pm |
  8. Marge

    Wonder if this is what the republicans have been aiming for all along. Ruin the country. Turn it back into a third world mess then they think maybe they will be able to take it over.

    Have you ever heard such crap from an American politician. I tell you all republican congressmen and woman should be sent to a desert island let they get along buy them selves. We don't need their kind in this country and we are seeing what a bunch they are.

    March 8, 2009 10:01 pm at 10:01 pm |
  9. gary

    Only bankruptcy can allow them to implement the 15% plan for survival:

    Cut 15% the pay of every worker
    Cut 15% of the poorest selling models
    Cut 15% of the workforce
    Cut 15% of the dealers
    Cut 15% of the retiree benefits

    Then maybe GM will survive.

    March 8, 2009 10:02 pm at 10:02 pm |
  10. casey

    I agree...for capitalism to work..you have to accept both sides(the up and down) of it.

    Casey at moneytalkblog.com

    March 8, 2009 10:03 pm at 10:03 pm |
  11. Tim

    What is wrong with letting a business who makes bad decisions fail? Why bail them out? Business leaders, workers and investors in those companies have a say in what happens. If they make the wrong decisions, then they fail. How does one learn (or others watching) if the government gives them a "do over"?

    March 8, 2009 10:09 pm at 10:09 pm |
  12. Jeff

    Of course, the Repugs are going to say things like this but continue to blame Obama for scaring the market and driving down the Dow.

    March 8, 2009 10:09 pm at 10:09 pm |
  13. Patricia Lawrence

    My it is hilarious that Se. John McCain can give advise on the Economy. Is this the same McSame that said the fundamentals of our Economy is strong? America and Americans support our President and his Administration. The GOP knows that Bush and the rest of the cronies have misled the American people for eight long years. Lied about Iraq, Lied about our Economy not being in a recession, Lied about Rove, Lied aboput wirtapping. Lies, Lies, and Lies. And Eric Cantor what a wimp... He will never amount up to anything...

    March 8, 2009 10:12 pm at 10:12 pm |
  14. Mark

    Interesting the Republicans would let the banks fail...when they were the ones who facilitated a pro-business policy and contributed to the free-for-all market capitalism. What will these Republicans say when all of those workers and industries also fall apart? Was it their fault that the Republicans defended a "trick – kill" down economic theory? How about booting out all of those Republicans in Congress who contributed to this problem – why stop at the banks?

    March 8, 2009 10:13 pm at 10:13 pm |
  15. WIll 18E

    Shelby did vote against TARP.

    He does have a point. If these banks fail, there will not be a spiraling down fall to doom; this will happen anyway. It's simple supply and demand. Too many banks and not enough customers. The customer base and money supply will not change if banks, to include big banks go under.

    March 8, 2009 10:14 pm at 10:14 pm |
  16. Dave

    yeah, just not the banks where these corrupt, shamless bastards have THEIR money

    March 8, 2009 10:16 pm at 10:16 pm |
  17. Ula Nejad Sacramento, Ca

    AG Holder was right. So was Rush. Lets be courages and give credit where due. Obama is black. He is not like other presidents. Stop pretending that Obama is why the economy will not turn around as long as he is in office. I don't care how you spin it. Voters must suffer the consequences. Exactly why the republicans will bash the liberals till they come to their senses.

    March 8, 2009 10:16 pm at 10:16 pm |
  18. Ruth

    I agree let some of the banks fall to the ground. The banks and insurance companys were part of the great fall of America.
    We need to keep the car companys in place. These guys only provided cars that americans wanted. We the americans must take responsiblity for our part.
    I am tired of the time being spent on blaming everybody else.

    March 8, 2009 10:18 pm at 10:18 pm |
  19. Sharon

    Lord help us all, I pray this economy turn around for all of our sake.I don't want to see nobody fail.Lets hope the plans that have been put in place work for all of us.Lets be postive,talk postive,walk positive and live and think postive.The media is sounding the trumphet of destruction a little bit to loud,try talking about the good in the plan make people feel postive instead of down.Don't be moved by what you see belive it's going to get better. Faith

    March 8, 2009 10:18 pm at 10:18 pm |
  20. Carl Muckerheide

    I agree – let some of the banks fail and further more – let GM fail – They have all gotten enough of our money and they are still asking for more. Why throw good money after bad.

    March 8, 2009 10:19 pm at 10:19 pm |
  21. Penn Voter

    Alan Keyes speaks the truth.

    March 8, 2009 10:20 pm at 10:20 pm |
  22. Sharon

    Lord help us all, I pray this economy turn around for all of our sake.I don't want to see nobody fail.Lets hope the plans that have been put in place work for all of us.Lets be positive,talk positive,walk positive and live and think positive.The media is sounding the trumphet of destruction a little bit to loud,try talking about the good in the plan make people feel postive instead of down.Don't be moved by what you see belive it's going to get better. Faith

    March 8, 2009 10:21 pm at 10:21 pm |
  23. Mouthpieces

    Do we not yet understand that these Republicans get marching orders to make noise

    McCain – Senator
    Shelby – Senator
    Boner – House
    Cantor – House

    Little Eric Cantor is the Minority Whip; complaining is his job. Don't take him too serious. He is like the little dog that barks a lot.

    March 8, 2009 10:21 pm at 10:21 pm |
  24. Dustin

    I'm not necessarily opposed to letting some banks fail, but it seems awfully unfair to leave the choice of which banks to our elected officials. If anybody is to choose, it should be the market. However, judging from Senator Shelby's remarks, I suspect they may already have a bank or two in mind.

    March 8, 2009 10:26 pm at 10:26 pm |
  25. Rebecca S.

    CITIBANK CHARGES 29.99 %. They're loan sharks and deserve to fail.

    March 8, 2009 10:27 pm at 10:27 pm |
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