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. bill for barack

    Several top banks have said that the Republicans should be allowed to fail – and they've done a marvelous job of it thus far.

    March 8, 2009 07:55 pm at 7:55 pm |
  2. John

    Who cares what the republicans have to say, the American people made it pretty clear in November that we have had enough of their trickle down economy.

    March 8, 2009 07:56 pm at 7:56 pm |
  3. Fred

    Is there a valid reason all the liberal nut jobs flock to CNN to Post nonsense... Must be the Water

    March 8, 2009 07:56 pm at 7:56 pm |
  4. gl, Pittsburgh

    Why is John McCain running his mouth when he didn't have much to say when his twin Bush was the President. I am sick of hearing McCain names.

    March 8, 2009 07:57 pm at 7:57 pm |
  5. Patricia

    Sounds like the republicans are hoping to finish the job they started under the Republican Bush administration, that is putting the country into another depression.

    March 8, 2009 07:58 pm at 7:58 pm |
  6. S Callahan

    It's even more amazing they are 'just now' taking a stand since there have been many consistent opposers to bailing out the bank, at least on CNN's blogs.....Why are we rescusing them? To protect whom?
    Banks have failed time and again in the past and the economy the million dollar question now is...WHAT OR WHY is this seen as something that shouldn't happen?

    March 8, 2009 07:59 pm at 7:59 pm |
  7. Larry Kraus

    so it's come to this give the top 1% more tax breaks and let some big bans fail. i guess they told the rich which banks will close so only we little guys will take a hit if they do fail. the republicans had years and years to put their policies in place and those policies led us to this point. I for one don't want any more help from them i can't afford any more help from them.

    March 8, 2009 08:00 pm at 8:00 pm |
  8. gl, Pittsburgh

    When the Banks fail, the Republicans are going to Blame it on Obama like they are blaming him on the stock markets. RIP

    March 8, 2009 08:02 pm at 8:02 pm |
  9. republicans hate america

    god just imagine if McPhony was president right now burrr sends shivers down my spine

    March 8, 2009 08:02 pm at 8:02 pm |
  10. Joe L

    Where were these clowns when the Bush administration was demanding deregulation
    What a bunch of they have solutions.....NOT
    They are the problem that needs to de delat with in 2010

    March 8, 2009 08:03 pm at 8:03 pm |
  11. once upon a horse

    wow lately the word "FAIL" has seemed to become a Republican favorite sense Obama took office. I wonder why.

    March 8, 2009 08:03 pm at 8:03 pm |
  12. Reality

    Is CNN going to report that Obama said he wants to reach out to the Taliban?

    March 8, 2009 08:03 pm at 8:03 pm |
  13. Matthew, Detroit

    STOP making excuses for little boy barack.

    March 8, 2009 08:04 pm at 8:04 pm |
  14. Jac

    So now the Republicans WANT to Nationalize the banks? Because that's what happens when you have the Government "close them down".

    March 8, 2009 08:05 pm at 8:05 pm |
  15. Keith

    This guy Shelby and fake Souyhern fried accent always shows his lack of concern for anyone but the good ol' GOP.

    Does he ever have anything good to say.

    "Wahat doncha cum on down heah to Alabam where got this here great economy since the civil war...

    This guy probably voted with Bush 95% of the time.

    March 8, 2009 08:05 pm at 8:05 pm |
  16. big daddy

    You bozos in the GOP have all the answers now...All you get done
    is grandstanding and we will remember you next election...

    March 8, 2009 08:06 pm at 8:06 pm |
  17. reggie

    Like it or not, the republicans are right on this one.

    March 8, 2009 08:06 pm at 8:06 pm |
  18. Maurice

    I personally agree that the banks that are in trouble should be allowed to just fail. Granted, many people will lose their jobs and the economy will suffer, but you must admit that there will always be someone willing to buy them out. No one bails out the small/personal businesses. I personally work for a privately owned car dealership. I have personally felt the economic pressures. Capitalism is based upon businesses failing. If a large company can't survive, it's not due to economic times... it is due to poor management. Let the businesses fail in order for the strong to survive.... Darwin's theory...

    March 8, 2009 08:07 pm at 8:07 pm |
  19. Matthew, Detroit

    The leader of the free world is a joke.

    You thought President Bush was irresponsible when it comes to

    spending, well this clown is a joke. He spends money like a 17 year

    old girl with her daddys credit card.

    Barack you are building up speed for failure. I really thought we could

    survive the 4 years you would be in office but you are intent on ruining

    the entire market and value of the US economy.

    You are going down in history as the worst president of ALL time.

    I thought Carter was bad but you are a naive boy.

    What a mistake electing this fool.

    March 8, 2009 08:07 pm at 8:07 pm |
  20. Maurice

    Btw, i am neither republican nor democrat.... I just believe in what is right...

    March 8, 2009 08:08 pm at 8:08 pm |
  21. Natasha in tally

    Sorry Pat F gotta call you. We are not a true Capitalist society. The market doesn't punish you for making bad business decisions, it hands you a larger bonus than the year before. The amount of jobs lost if a major bank goes under is unspeakable. President Obama is, and rightfully so, doing everything possible to ease this recession. If capitalism was so efficient as you claim then why the mortage crisis?
    You can only blame the homeowner for so long. The buck stops with the banks. They knew that some people had no business getting a home loan but greed blinded them. The idea that you would punish millions of Americans by putting them out of a job frankly sounds cold. Capitalism is only efficient when you play by the rules....regulations. DUH

    March 8, 2009 08:08 pm at 8:08 pm |
  22. JT in Fla

    Let all banks fail in Alabama and Arizona then we will hear the Republicans start to sing a different tune. What a bunch of nutbags!!!

    March 8, 2009 08:09 pm at 8:09 pm |
  23. JT in Fla

    Did they really say that or did Rush Lardbutt tell them to say that? God old Lardbutt the new head of the Republican party!!!

    March 8, 2009 08:13 pm at 8:13 pm |
  24. David

    Its better to have a few strong companies and then a lot of troubled ones. Think about the sales increase Ford will get it GM was disappear. If AIG fails people will get insurance with BCBS and the like. We do not have the market to support so many companies. It will be very painful at first, but much stronger a year down the road.

    March 8, 2009 08:14 pm at 8:14 pm |
  25. Peter E

    These banks have been failing since 2005. Congress gave them our taxpayer money then. They gave them our money again last fall. These banks didn't change a thing. They'll continue to come back begging for our taxpayer money over and over while still screwing over the millions of Americans they purpot 'depend on them.' Those millions are screwed anyway. So why not have those banks do it on their own money instead of your taxpayer dollar?

    March 8, 2009 08:19 pm at 8:19 pm |
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