(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
I'm sure it's because of his concern over Wall Street bailouts and not because the regulations affect his Corporate donor's ability from further manipulate the financial markets in their favor. Get bent.
This old geezer who looks like a turtle is why you can't get anything done in Washington. He would tell the GOP to vote no no matter what was in the bill. He is disgusting to look at and to listen to. One can only hope some kind of circumstances cause him not be be able to continue in the senate. Well, one can hope right!
It does not matter if it is a good bill or a bad bill. The vote is always No for McConnell and his gang.
The party of no voting no, what a surprise!!!!!!!!!!!!!
No Banking Bill without a FED Audit!!!!! Filibuster!
A reform bill sponsored by Chris Dodd of all people. Is that some attempt at humor? Dodd's double dealing and financial blunders have hurt our country more than any Senator alive today.
The bailout, as unpopular as it may be, saved our collective arses. This is a bill to prevent the horrible misbehavior of wall street fat cats that got us into the mess in the first place, and the GOP doesn't want it?!?! What side are you on GOP?
The Republicans have gone into the business of making the perfect the enemy of the adequate to the point of complete inertia. This is not because they are stupid, but that they rely on the stupid to remain in power. Absolutist rhetoric appeals to the cognitively impaired – which is the Republican base.
The truth is that the bail out worked, it was necessary because of the Republican absolutist approach toward sane regulation (ie. none), and if they prevail will be necessary again.
And the party of "NO" continues...
McConnell: how did you vote on Bush's BANK BAILOUT? In lock-
step with old man McCain who (this is a joke) ended his campaign
to rush to Washington and save Wall Streeet.
What a total hypocrite you and the rest of your GOP members are!
McConnell and the rest of his republican colleagues don't serve the middle class. How can you be against legislation against the crooks that got us into this financial crisis in the first place? Vote all republicans in November.
Oh Sure! Let all the banks fail. Then you will see suicides and bread lines like in the 1930s. Just who is this loonatic. Honestly talk about out of touch with reality. Honestly !!!!!Say anything to garner votes. I would call McConnell a clown but that would be an insult to all clowns
I definitely oppose a move that saved us from the worst financial disaster in our nation's history...
Mitch McConnell, R-Kentucky,
Where has he been on Mining safety ?
Where was he on Education ?
Where was he on WMDs ?
Where was he on big insurance ?
He acts more like a bucket of Colonel Sanders day late and a dollar short extra fried crispy chicken !
Not so finger lickin good !
What's McDonnell's solution, if Wall Street goes we all go and that will be a big bang heard around the world.
This man needs a vacation or a break to reflect and think.
OK, for the sake of the argumentation let's pretend that he is right and the bill has a major flaw (he really might be right on that one).
Show us how to fix this flaw, like 'Hey govt., there's this problem in the bill and that's how you can fix it'.
You know? Like showing a viable/workable ALTERNATIVE?
Something that you or the other Gopers haven't shown to America for quite a while?
Instead of trying to get this provision into the bill, the republicans will use it as an excuse to vote no. Gee what a surprise. Keep showing America that your party is really standing for the corporations, and not for the American people. You are making this too easy. Keep it up.
let's see the GOP voting NO on something the Obama administration proposes.....is THIS really news? These guys are already planning to vote No on his SC choice and he hasn't even made it yet. Sarah Palin was quoted as saying being the party of "NO" is a good thing...well the longer it goes on the worse I think it's going to be for the GOPers especially if they can only vote no but offer no other alternatives.
McConnell is 100% right on this.
If it does not include it, do NOT vote on it.
And, he is right on this as well..........The MAJORITY in the country will support the Republicans 100% if they vote "NO", unless "no bailouts" is included.
I'm sure the lefty wingnuts will only see a Repub saying "no" and not get beyond that. Read the article as if a Democrat is saying "no" and see if it makes sense then. What was then is past, what is now can be prevented. Wall street needs to operate on their own merits, not taxpayer bailouts.
No No No NO NO NO NO
What a surprise, the party of two year olds votes NO.
It is so incredible that Dodd wrote the bill. Wow. Yes, we should not be expected to bail them out. We should not have the first time for Bush or for Obama. But they must dance to the music since they're not really in charge here. The Fed is a private bank (not a federal one) and will never allow itself to be audited.
Thank god we have good honest men like Mr. McConnell to TRY and ward off this blatent socialist takeover of our great nation. 2012 can't come soon enough. Maybe then we can fix this Obama error.