March 9th, 2009
04:37 AM ET
9 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. proudliberal-independent

    repubs have no sensible answers whatsoever. they broke it and can't fix it.

    March 9, 2009 07:35 am at 7:35 am |
  2. beevee

    Who are the idiot economists that are advising Shelby about banks. Or is he himself a world renowned economist. If Obama administration's economic advisers have no good basis for bailingout banks then there should be a discussion and debate about whose strategy is the right course to follow. Otherwis, Mr. Shelby! do'nt just bark.

    March 9, 2009 07:44 am at 7:44 am |
  3. getalife

    I hate to agree with a republican, but, yeah, let them fail. whats with all this too big to fail crap. the very people who caused this mess, profited greatly from it, and are still profiting from it.
    Everyone should take all of their money out of the bank and head down to their local credit union, and put it there. They're not asking for bailouts, they don't need one. Who wouldn't love to see citi come crashing down. I hope their creditors call them 15 times a day with threatening phone calls, like they do to you when your late.

    March 9, 2009 07:50 am at 7:50 am |
  4. dick

    This is not suprising, Republicans have been working hard on getting the whole country to "Fail" for some time now

    March 9, 2009 07:51 am at 7:51 am |
  5. Roger

    Why do these Republicans think they have the answer to everything. If they would just put forth some effort to work with President Obama and the Administration, perhaps some real solutions would be found. Unless and until they start either working with the President or presenting some viable alternatives themselves, the Republican party will not regain any of the tremendous amount of ground they have lost. Over the weekend I watched a chilling documentary entitled "Right America, feeling wronged". To be sure I am sure this not reflect the majority of Republicans but the minority of them that was protrayed is not only frightening, it is sinful. Our new President deserves the support of all Americans to work with him as he tries to get us out of this ugly mess!!

    March 9, 2009 07:51 am at 7:51 am |
  6. Grimm

    Some banks should be allowed to fail? What about the people who actually work for a living that keep their money in theses particular banks?! There is much I don't know about finance or politics but I do not that Senator Shelby's position is a very hard one.

    March 9, 2009 07:51 am at 7:51 am |
  7. Bob

    As you wish Senator Shelby. Let's dump Regions Financial out of Birmingham. It's a big bank and it's in trouble. Senator do you even remotely realize you are suggesting we dump 25 billion dollars of US taxpayers money if we dump Citi? Yes sir it's in common stock now and we couldn't get that back if we did. Sir may I point out an old Chinese proverb to you? "Better to keep mouth shut and have people wonder..than to open it and let them know for sure."

    March 9, 2009 07:52 am at 7:52 am |
  8. Podo3500

    My God! Does McCain and Senator Shelby find their statements politically motivated or just economic stunts? The Republicans started by , 'Let Obama fail.' Now it's , 'Let the banks fails. ' What next ? Would it be , let the Health Care fail? or Let the American Soldiers fail in Iran and Afghanistan? I would simply say ' Let the Republicans fail.' Vote them out of the Senate in 2010. Show them that you care angry. Yes very angry.

    March 9, 2009 07:57 am at 7:57 am |
  9. cedgar

    Not a Dem or Rep.
    Why are we giving banks & insurance companies money?
    We are giving them money with no direction Why?
    Have we fixed the regulation No!
    These are world companies correct, are we giving money to
    stay afloat for the world Why?
    If this was ALL the Us fault why are the other countries having just
    as much or more problems?
    Personally I think we are doing this to keep rich people rich, sure is not keeping business open.
    Would you give your child a credit card and say go have fun spend as much as you like NO!
    These companies are acting like spoiled children on our dime and the government is letting them.
    He// give me the cc and I will go stimulate the economy. I could do
    just a good of a job if not better.

    March 9, 2009 07:57 am at 7:57 am |
  10. lieNoMore

    These 2 losers (Shelby and McCain) will say anything for politics at the expense of their country.

    Isn't this the same McCain who was ready to suspend his campaign to run to Washington and lead one of the first bailouts??? Totally disgraceful and another indication of the bankruptcy of the dimwit party.

    March 9, 2009 07:59 am at 7:59 am |
  11. John

    What kind of proposal is this? Are they trying to sabotage American banks?

    March 9, 2009 07:59 am at 7:59 am |
  12. Faye

    The Republican party is old and sick. All of these men needs to retire. I am so sick of the Republicans acting the way that they have since President Obama took office. Why are they now trying to have a voice in government when they were asleep when Bush was in office. People we need to rally to get all those old men out and send them home on retirement.

    March 9, 2009 08:00 am at 8:00 am |
  13. mark

    Obama already wasted almost a trillion on a worthless gov't stimulus program so I dont think we need to get into anymore debt to save all banks. We havent even got started on the socialist welfare programs of Pelosi and Bama.

    March 9, 2009 08:02 am at 8:02 am |
  14. ANGIE-OH

    AGAIN!!!! the repubs want to take the easy way out. "let the banks fail". the gop just doesnt have a clue on how to get out of the mess cowboy bush and the gop has gotten us into. they only know how to create a mess, not clean it up. typical gop. losers.

    March 9, 2009 08:07 am at 8:07 am |
  15. mark

    Everytime Pelosi and Bama speak the market drops another 400 points!


    March 9, 2009 08:09 am at 8:09 am |
  16. jd

    Politics is the reason that were in this mess or partially to blame. We as a government should have never gotten involved. I agree withSenator Shelby in that they got themselves in this mess, let them get out on there on. Same with the automakers. They are making a proud that is not the best for the money but they are wanting top wages and benefits for there labors. And it should have been done on an individual bases instead of the whole group. Yes some needs to fall on there face.

    March 9, 2009 08:10 am at 8:10 am |
  17. Pete

    When do we begin to see obamanomics start to have a positive effect .

    March 9, 2009 08:17 am at 8:17 am |
  18. American first

    a little off topic, but comments closed early for JM blog and no time for positive comments...Maybe we should go back to talking about MO's gorilla arms as people seem to have only ugly comments about Meghan McCain. I don't see why they hate her and JM–they have both always loved their country. MO gets away with all kinds of hateful statements and gets positive feedback on CNN.

    March 9, 2009 08:19 am at 8:19 am |
  19. JonDie

    Although I agree with Shelby and McCain in principle, it's easy for these Republican Neanderthals to say "Let the banks fail". Even though the failures are a direct results of the stupid policies of Bush, McCain and Shelby, when these banks fail Obama will get the blame.

    March 9, 2009 08:23 am at 8:23 am |
  20. Unshrub

    I am beginning to hate republicans and their child-like behavior.

    They have nothing to offer except the same old tired rhetoric.

    March 9, 2009 08:24 am at 8:24 am |
  21. Don

    Well well now we have stooped to a new all time low. In another article, one that does not reflect this one, Ted Kennedy received the John F. Kennedy Profile in Courage Award. Wow we are really getting desperate aren't we? That would have been a good time for Ted to have come clean on killing Mary Jo years ago. I guess the courage part comes with him being able to swim to well huh? Congraulations America we have now lost what little common sense we once had. Will Bush be next with his courage to invade Iraq without total proof of WMD? Maybe give the next one to Hillary for wanting to give the Palestians millions of our hard earned money. But lets wait, we now have a party running the government that thinks we can give and it will be fixed. Wake up America before it is too late.

    March 9, 2009 08:25 am at 8:25 am |
  22. dblzap

    Why do conservitives hate us so much?

    Its always ME ME ME and screw everyone else!

    The conservitives caused this mess, they need to go away!

    March 9, 2009 08:25 am at 8:25 am |
  23. Tom, Bradenton,FL

    It is the worst thing government can do when it gets into bailing out failing institutions. Banks made risky loans and gambled with customer money and they lost. They should pay a prize for it on top of it they bullied consumers around by re writing the bankruptcy code in 2006. They have no problem destroying a troubled customer but ask us for money when they fail. No more money for these crooks.

    March 9, 2009 08:25 am at 8:25 am |
  24. Monrob

    I am so tired of these southern "gentlemen."

    March 9, 2009 08:26 am at 8:26 am |
  25. hildutus

    Those who by lax regulation and laissez-faire policies allowed the banks to fail should meet with the same fate. And they would ... if the people voted with reason rather than with ideology.

    March 9, 2009 08:26 am at 8:26 am |
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