April 13th, 2010
11:25 AM ET
8 years ago

McConnell tells GOP: Vote no on Wall Street bill

(CNN) - The Senate's top Republican on Tuesday called on Republicans to oppose the Democratic Wall Street reform bill because it does not adequately safeguard against the government's power to bail out massive banks in the future.

"If there is one thing Americans agree on when it comes to financial reform, it's absolutely sure they agree on this," Senate Minority Leader Mitch McConnell, R-Kentucky, said in a speech on the Senate floor. "Never again should tax payers be expected to bail out Wall Street from its own mistakes. We cannot allow endless tax payer-funded bailouts for big wall street banks."

The 1,300-page bill, sponsored by Senate Banking Committee Chairman Chris Dodd, D-Connecticut, aims to create a new consumer regulator housed inside the Federal Reserve to ensure consumers get a fair shake with mortgages and credit cards. It would also push banks and financial firms to strengthen capital cushions and create a new process for taking down giant failing companies and preventing future Wall Street bailouts.

But McConnell suggested Tuesday that any new reform bill must include a categorical provision that the government will not bail out financial companies.

"The fact is this bill wouldn't solve the problems that led to the financial crisis; it would make them worse," McConnell said. "This bill not only allows for taxpayer-funded bailouts for Wall Street banks, it institutionalizes them."

The Dodd bill would steer big financial firms near collapse toward special bankruptcy proceedings, allowing them to wind down more quickly than under the existing system. The legislation would create a $50 billion resolution fund by taxing the largest firms. The fund would be used to pick up part of the tab for firms that need help beyond the bankruptcy system. The bill also holds out the possibility of additional taxes on large firms after a failed company has tapped the fund.

"No one honestly thinks $50 billion would be enough to cover the kind of crises we are talking about," McConnell said. "The mere existence of this fund will ensure that its get used."

- CNNMoney.com's Jennifer Liberto contributed to this report

Filed under: Mitch McConnell • Popular Posts
soundoff (251 Responses)
  1. DavidM

    Republicans merely support their big business patrons rather than doing what is right for the country and the American people. They don't even try to hide it anymore. McConnell and the rest of the GOP should be ashamed...

    April 13, 2010 02:23 pm at 2:23 pm |
  2. Mark

    Just more excessive garbage and gov't control from the radical left.

    April 13, 2010 02:24 pm at 2:24 pm |
  3. John

    All these posts and only three that support the Republican position, and those three misunderstood the proposal in the first place.
    Keep telling yourselves the T baggers are going to save you in the next election. You guys are against the people and against the voters. Look for a lot of crying when the REpugnicants get waxed in the mid terms.

    April 13, 2010 02:25 pm at 2:25 pm |
  4. Kincaid4ever

    The GOP is the party of no. No to 32 million getting cheaper healthcare. No to any justice who isn't far right. No to unemployment benifits help, no to regulation on wall street. No to a bill that regulates wall street if the president is for it. The only thing the GOP is sure of is no!!!!!!!!!!!!!!!!!!!!!!

    April 13, 2010 02:26 pm at 2:26 pm |
  5. Ace

    That's it. I'm voting nothing but -D- next election. I refuse to put someone in power who's sole purpose is to derail and stall every single bill the president's party puts forward. Not fix or improve the bill mind you, but to STALL and DERAIL.

    I'm frankly tired of it.

    April 13, 2010 02:27 pm at 2:27 pm |
  6. Dyan, Minnesota

    Seriously? Republicans want a law that says the federal government won't bailout giant banks and Wallstreet? If I were the Democrats I'd put that in the bill in a hearbeat and then dare McConnell to continue to oppose the bill.

    Because that's not why Republicans are going to vote 'no'. They LIKED bailing out their Wallstreet buddies and won't agree to a law that prevents that from happening in the future.

    April 13, 2010 02:28 pm at 2:28 pm |
  7. Sniffit

    Ah, more grandstanding by taking an absolutist position that a reasonable mind would see has clear faults, but which an undereducated angry tribal partisan will agree with sans critical thought.

    "Anyone want to bet against my predictions?'

    Are you nuts? See, it's not the racism or the old boys network or the obstructionism or the sexism or the religio-fascist social conservatism or any of the other oft-cited foibles of the contemporary GOP that constitutes its No. 1 problem. It's the predictability. They are, at this point, 100% predictable, which is why Obama and the Dems are playing them like harps at this point. By the end of 2010, they'll have said NO at least one too many times to too many things (i.e., everything) and it will break them. Independents may have jumped on board the angry wagon for ride through tantrum town, but they're quite likely to get off soon once they realize that NOTHING IS GETTING DONE WHATSOEVER because the GOP simply won't let our government function while they do not have control.

    April 13, 2010 02:34 pm at 2:34 pm |
  8. John in WV

    I hope this is not suppose to be a surprise.

    April 13, 2010 02:34 pm at 2:34 pm |
  9. ray

    the party of no turns to the party of no, no, no. what a sad day in america when these people on the right along with the tea party terrorist trying to block and stop everything to advance this country, i wish someone round up all these people on the right and put them all away for good.

    April 13, 2010 02:36 pm at 2:36 pm |
  10. Voice Crying In the Wilderness

    Is it crystal clear yet? This Senator is stuck in "no". There should be a Constitutional Law against people like this.

    April 13, 2010 02:37 pm at 2:37 pm |
  11. JC

    What is the most damaging political party in America today? Why its the party of NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO, No new ideas, no responsibility, no bipartisanship and no idea as to what they are doing in Washington other than saying no.

    As a former Republican I disown these fools, Reagans trickle down econmic plan failed then and is still a failure. The idea that buisnesses are responsible enough to govern and regulate themselves is a joke. Failure to vote for this bill, as McConnell is proposing and for the partisan reasons that McConnell is setting forth is anti-America. ..................it's time they went home.

    April 13, 2010 02:37 pm at 2:37 pm |
  12. Sniffit

    Someone call Dr. Bunson...Beaker ate the brown blotter and is running amok in the Senate chambers.

    April 13, 2010 02:39 pm at 2:39 pm |
  13. Beth

    The market has finally broken 11,000. Unemployment is starting to improve. All economic indicators point to the fact that the recovery plan (and the bailout) have worked. In light of that, doesn't it just blow your mind that a Republican leader is shouting "No more bailouts"?
    Now I'm not saying we should or shouldn't have any more bailouts – I just think the timing of his statement is mindbogglingly ignorant.

    April 13, 2010 02:41 pm at 2:41 pm |
  14. jeff jackson, alabama

    Speaking as a Republican I can not imagine
    why anyone would be against our Government
    being able to bail out a U.S. enterprise to save
    jobs and secure the future of big companies
    in America.
    The billions we waste over seas on our enemies
    doesn't seem to bother my fellow Republicans,
    but the bailout of G.M. angered them.
    You people in Wash. D.C. better wake up and smell
    the roses or both parties will see a big turnover
    next election !!!!!!!!!!!

    April 13, 2010 02:41 pm at 2:41 pm |
  15. Eric

    This is all great Mitch and most everyone agrees. But why not regulate these banks. Let's say for example we pledge no more bailouts- what happens when these banks topple the economy again? Let's set up the structure so if these banks fail, it doesn't take the economy with it. Let's change the accouting rules so there's more transparency. Let's limit the types of investments they can make, how much they can leverage and the complexity of these products that have no use other than deception.

    Lastly let's punish those responsible. No more hiding behind the corporation as a shield to do things no one would do to someone's face.

    April 13, 2010 02:42 pm at 2:42 pm |
  16. Aaron

    Anything to be contrary. Now the Repubs don't want tax dollars going toward the super-wealthy whose interests they exclusively look at for.

    April 13, 2010 02:43 pm at 2:43 pm |
  17. Debbie

    Do we need to bail them out again. Wake up people. We are in debt over our ears. WE HAVE NO MONEY and you want to bail Wall Street again. Where are you going to get the money?

    QUIT BAILING THEM OUT! Its not about the No, its all about we have no money!

    April 13, 2010 02:47 pm at 2:47 pm |
  18. steven harnack

    McConnell knows that this will be red meat to the loud 20% Republican base . They can only focus on one idea at a time so they will be loudly behind an idiotic idea that only sounds good if you give it absolutely no thought and completely ignore the fact that the bill is an attempt to make sure that the issue of a necessity for a bailout is moot.

    April 13, 2010 02:48 pm at 2:48 pm |
  19. Jeff Brown in Jersey

    Mitch looks like he has his panties in a bunch!

    April 13, 2010 02:50 pm at 2:50 pm |
  20. Bill, Bloominton IL

    Typical of dummycrats. (The party of hate) The growth of the late 90s under the nutpie Clinton was all a lie and started the downfall of our economy because Clinton and the SEC stood by while big companies were cooking their books. No one should ever trust a democrat to run WallStreet as all this started in the late 90s under the great Clinton Crime Family. Lets just continue to give Obama, Clinton, and the democrats credit for all things they say they did that cannot be measured.

    April 13, 2010 02:51 pm at 2:51 pm |
  21. NJ Jim

    Not a very bright idea, Mr. McConnell. Just more of the same narrow minded, shortsighted and "lobbied" approach to NOT solving our nation's problems. You republicans are political dinosaurs!

    April 13, 2010 02:52 pm at 2:52 pm |
  22. DOG1

    Let me get this straight, the Republicans very nearly destroyed this nations economy by de-regulating banking and other wall street financial entities, when the economy took a dive at the end of Bushs "reign" they GAVE the wall streeters something on the order of 780 BILLION dollars with absolutely no strings attached, (apparently they don't even know who got a good deal of that money) and now they want to block a bill that will try to get the financial institutions under some sort of control? It really looks like they are actually trying to destroy this country financially. What do they care anyway if this country tanks they can move to one of their other homes in some other country and leave the rest of us behind.

    April 13, 2010 02:53 pm at 2:53 pm |
  23. Michael

    If you believe that a Republican Senator would act in favor of middle-class Americans at the expense of Wall Street, then have I got news for you!
    The Pope is a secret Muslim agent!
    Reptilian aliens from Pluto have infiltrated our government!
    I own a half share in the New Jersey Turnpike, and will transfer the deed to you for a modest fee – I accept Visa, Mastercard, or PayPal!
    The Earth is flat, and is the real center of the universe!
    But you probably knew that already.

    April 13, 2010 02:54 pm at 2:54 pm |
  24. CM

    The Party of No does it again! Not a big surprise, is it?

    April 13, 2010 02:56 pm at 2:56 pm |
  25. Roger Duck

    MItch...just sit down and be quiet. The dems are taking care of the business you folks forgot to when you had both houses for six years...and Quite Whining.

    April 13, 2010 02:57 pm at 2:57 pm |
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