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. Rick

    Do it before Obama sends us all to the POOR HOUSE like he is trying,

    March 8, 2009 08:20 pm at 8:20 pm |
  2. Franky

    "My basic tenet here is I don't think we should create life to enhance life and to do research and so forth," Shelby said. "I know that people argue there are other ways. I think we should continue our biomedical research everywhere we can, but we should have some ethics about it."

    Ummm and you're point is?? For the record, you come from Bama, your state is more stupid than a turtle...and i consider turtles smart thank you very much, LOL!!

    Yo know what I say?? Ha!!!! My goodness, before we know it, science is gonna be a distraction and if you wanna go there and debate this, TRUST ME, you...will...lose!!!

    Are you serious, ethics?? What is this, Octumom part 2?? Is science, do you know anything about science?? Ohh yeah, you don't, your state is stupid...

    March 8, 2009 08:20 pm at 8:20 pm |
  3. Terry in Poway, CA

    Definitely let the completely insolvent banks fail, whether they are big or small.

    Let capitalism work, and let other banks pick up the scraps. The big multinational banks that have so far been considered too big to fail are going to continue to drag the deficit and the economy down for years otherwise.

    The country, and the economy would be a lot better off if 100 healthy regional banks could all take pieces of Citibank, Bank of America, etc. They took some ridiculous risks with derivatives due to greed, and they should be allowed to fail.

    March 8, 2009 08:20 pm at 8:20 pm |
  4. Greg, San Francisco, CA

    This is yet another bad, simplistic Republican solution to a very complex problem, to which they greatly contributed.

    March 8, 2009 08:23 pm at 8:23 pm |
  5. Franky

    And by the way Shelby or whatever the heck your name is...boy, do we got dirt on you, do we got dirt on your state even your momma would not want you to know...ohh look at that, looks like Arlene from the hood(Illinois) got the memo, LOL!! Looks like my work here is done...

    March 8, 2009 08:24 pm at 8:24 pm |
  6. Rick

    I am so tired at listening to the Demoncrates blaming the Republicans for the economy. The Democrates need to look who ran the Congress when Bush was in Offioce. They were democrates, The Democrates wee in control and what did they do...NADA, NOTHING, JUST LET IT GO, thats why we are in such a mess, not from the president but from the Congress, they are the root of all our evil, thats why they are DEMONcrates.

    March 8, 2009 08:24 pm at 8:24 pm |
  7. Allie in San Diego

    If the big banks are allowed to fail, then, we're going to have to prop up the FDIC, because there will not be enough money there to re-imburse all the losses. It's a plain fact that the money will go to either the banks or the FDIC. There's no getting out of this one without spending money.

    March 8, 2009 08:25 pm at 8:25 pm |
  8. riopowel

    McCain needs to quit his crying because he lost the election, and live up to what he promised, instead of trying to cast aspersions on other's character. He and the other Republicans had their chance, and they are the reason we're in this mess, anyway. Had it not been for their irresponsibility, they might have won the election, instead of having their hats handed to them. Maybe we should tar and feather them so they get the message, and run them out of town on a rail just to make sure. Most certainly, the Democrats will make mistakes, and will have to back up and try to recover from them; at least so far, they seem willing to at least admit mistakes, and not cover them up or blame them on others. The past administration had no such sense of culpability or maturity. The Republican party as a whole has become irrelevant and obsolete; lets finish taking out the trash.

    March 8, 2009 08:28 pm at 8:28 pm |
  9. scott

    i think its fair to say that the "top ranking" people who have been running the big banks into failure, did so because they were taking cues for 8 long years, from an institution run by the REAL worst of the worst....

    Republican run government.

    scott in NH

    March 8, 2009 08:29 pm at 8:29 pm |
  10. Bob From Missouri

    MAY AS WELL LET THEM FAIL . WHY , THE ONES AN WALL STREET , ALL HELPED THIS DO NOTHING , THAT HAD THE HELP OF ALL THEM . TO PURCHASE THE WHITE HOUSE. WHY HE IS THROWING MONEY AROUND , WORSE THAN IF YOU TURNED A 4 YREAR OLD IN TOY'S R US.

    NOW HE IS GOING TO TAX THE MILES YOU DRIVE , AN DO AWAY WITH THE GAS TAX . THEREFORE , THOSE WHO PURCHASED A HYBRED AUTO , YOU WILLL HAVE TO PAY AS MUCH AS THAT LIMO OR MOTORHOME , OR THAT HUMMER.

    ALL I CAN SAY , HE MUST OF BUMPED HIS HEAD LONG AGO , AN HE PICKED THE DAILEY MACHINE FOR HIS DR. AN TONY TOOK CARE OF THE .DR. BILL ,"WRIGHT"

    AS IS WE ALL WILL BE IMPOUNDED BY 2012 .

    March 8, 2009 08:33 pm at 8:33 pm |
  11. El Florida

    Are you kidding me? He wants Citi to fail without being nationilized?
    Why don't we let Alabama, Mississippi, and Luisiana fail instead. That would be cheaper.

    What a dufus. And this joker is the ranking member of the banking commitee...

    EPIC FAIL

    GOP R.I.P.

    March 8, 2009 08:34 pm at 8:34 pm |
  12. Pam in Oregon

    It's OK to say the words "bankruptcy" and "nationalizing" for the banking industry. Bankruptcy will allow for various options which include restructuring debt. Nationalizing the banks makes sense for any who are potentially solvent and meet specific standards in their accurate, realistic and true balance sheets. Let's have a look.

    The Republicans sure acted like sheep during the BushCo administration. They fell right in line with the mantra of "no credibility and accountability".

    Pam in Oregon

    March 8, 2009 08:36 pm at 8:36 pm |
  13. Jean

    Let them all fail and give the money to the people that pay their bills.

    March 8, 2009 08:37 pm at 8:37 pm |
  14. Diana

    Touché! It seems that Obama has forgotten that the very people he says he's helping are the ones that are being hit again and again with costs going up everywhere on everything. It's trickling down from this HUGE debt he's incurring at our expense. Let them fail is right. Let the automakers fail as well. This economy cannot recover until it hits bottom. It can't hit bottom until Obama stops injecting it with OUR hard earned money. The President needs to slow down. He's on a rampage in the White House. The scary part is why aren't more American's outraged at this?

    March 8, 2009 08:37 pm at 8:37 pm |
  15. Kathy

    I can not believe the ignorant people who belive this is a sound and good idea. They need to go back to school. Banks that are failing need to be taken over and salvaged. If they go under now how will we ever get back what has already been put into them. Republicans try real hard to think before you speak please. Please get them out in 2010 before they really screw us up more.

    March 8, 2009 08:40 pm at 8:40 pm |
  16. Jorge Montero

    I am tick off at these republicans who let our economy failed while under Bush and now they are acting like regular protectors of the the public. These banks hold our 401(k) and 403(b) . where were they before all these bankers took our money and ran with the Bush bail out? Just shut up and let someone else try. Stop acting like u really care.

    March 8, 2009 08:41 pm at 8:41 pm |
  17. yea

    For years the repubs have scared the american citizens. If anything, they are the terrorists, they hate america. It's there way or the highway. Your way is the wrong way. We got ours, you get yours. Why can't you people see that they care only about themselves and big business at any cost. But then again even satan has followers.

    March 8, 2009 08:43 pm at 8:43 pm |
  18. Spalin

    Fail? Like McLame's campaign? Why should anyone listen to him or his cronies?

    March 8, 2009 08:46 pm at 8:46 pm |
  19. Marc

    Didn't we let Bear Stearns fail? How did that work out?

    March 8, 2009 08:47 pm at 8:47 pm |
  20. Brian, NJ

    GOP to America, drop dead. Dow will be at 3,000 if Citigroup is allowed to fail. We will lose more in our 401(k)'s that what is needed in tax dollar to save it. Think macro folks. We are in this mess because they let Lehman fail because savings Bear, Sterns was not popular.

    March 8, 2009 08:48 pm at 8:48 pm |
  21. Marie

    Let them fail are you kidding me ?So then what happens loans are frozen then what?These genuises are something else but should they care when they have no morgage to worry about and reelected or not they'll be finacially secure not to mention they'll still have health care so what do they say go ahead and let the banks fail.The word FAIL seems to be very familar to the republicans since it's all that they've done in the past eight years

    March 8, 2009 08:49 pm at 8:49 pm |
  22. Jean

    Bush was don't throw 5.5 trillion dollars around.

    Our national debt is already 11 trillion and now add 5.5 trillion more to it.

    Obama has added 5.5 trillion dollars to our debt in one month.

    Only in Obamaland can you get away with being this stupid. The corrupt MSM are doing doggie flips and barking, Yes We Can, Yes We Can.

    We are screwed big time. These fools don’t have a clue what to do to stop this collapse!!!! But 0bama sure knows how to party and give a speech from his teleprompter which has become his pacifier. Can't go anywhere without it. Not as intelligent as the corrupt MSM has made him out to be, eh?

    Obama is in way over his head and his advisors are idiots.

    March 8, 2009 08:52 pm at 8:52 pm |
  23. dematheart

    McCain is a freakin' idoit, Bi-Polar or something dreadful judging from his erratic behavior [he will do ANY thing to win–but is a true loser]; Boner is a drunk, who wants his name pronounced different than it is spelled. They are both racists, the GOP is dead, and who cares WHat they say.

    March 8, 2009 08:53 pm at 8:53 pm |
  24. elana

    Well, I have to wonder if Mr. Shelby was on the other side of the fence, and he really NEEDED to borrow money from a bank, or he would lose his home, his car, his job, and his ability to find work, he would STILL be determined to be SELFISH, SELF-SERVING and unwilling to see any side of life but his own?????

    March 8, 2009 08:53 pm at 8:53 pm |
  25. Chuck

    Last time I checked this was still a free country....If you don't like the leadership you are "free" to leave at anytime.....and don't come back!

    March 8, 2009 08:53 pm at 8:53 pm |
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