(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
what else would think he would do except vote no,when tis bill was being written the senator from tennesse was told not to cooperate with the dems,he stated that is was a mistake not to but he did what he was told,so a no vote from the repugs is nothing new thats all they no,pretty soon the repugs will have to start thiking for themselves and stop listening to their so call leaders who is taking them down the wrong road and over a cliff.
Really Mitch? Another "no" vote? I'm shocked and utterly speechless.
And this is news why? That is all these turkeys know how to do. And how is that working out for you? Obama and the Democrats are going to get what they want despite the pettiness of the GOP. News to Republicans: Help or get out of the way.
Conservative or Indulgent?
Let the Republicans say NO again. We the American people will only have to say NO once and tha'st in November.
What's the real reason, Mitch? I think Ron Paul called people like you "COOPERATIST."
this just in! GOP to say NO!
You can always trust the Republicans to do the right thing.
Why isn't CNN reporting on the meetings Boehner and McConnell have had with Wall Street bankers where the Republicans promised not to let any legislation pass that would hurt Wall Street?
Mitch McConnell expects us to believe the GOP is on the side of the average American voter? Don't make me laugh.
Yes it would be much better to let the entire world economy collapse than to bail out another bank so by all means lets oppose all regulations and thus guarantee that Wall Street will gamble the world economy into bankruptcy simply because those regulations don't specifically ban bank bailouts . Just say "no" – its the only common sense thing to do.
let us help to throw this guy out of senate. We will be doing a great service to this country.
So basically the position of the folks against McConnell on this is that it's okay to bail the banks out if they screw up again?
You guys sure are really willing to spend money we don't have.
How can anyone in their right mind think these idiots can win a majority in Nov. All they do is say NO!! I can't stand any of them.
The big banks pulled the string and puppet McConnel said "NO". The insurance companies used the same (in)action figure.
huh...imagine if we let the banks fail last time.....
Instead of a knee jerk no response, Mitch, here is a great opportunity for you and the GOP to offer a more stringent bill for passage. And while you are at it, how come you and the GOP are not calling for jail sentences for the worst abusers on Wall Street. You want to stop greed, give the greedy cause to worry about spending some time behind bars.
McConnell and all of his buddies are doing nothing more than taking up space and oxygen in Washington. They have absolutely nothing to offer, bring nothing to the table yet continued to get paid...what a life. Remember, they "work" for us. If we went to work every day and did nothing, we would be fired Enough is enough!!!!!!
McConnell is right whenever he says,"the American people(the ones I rub shoulders with at the elite Country Clubs, i.e.Coal Mine & thoroughbred horse owners), don't want this."
How about instead of Voting NO, which is all these Republicans can seem to do, they offer up an amendment removing any funding for bail outs, and wording that will guarantee it doesn't happen again. By doing so, with the promise to push vote yes on the bill would be a compromise worthy of our elected officials. To just say NO, is a political game that proves the Republican Party is the Grand Obstructionist Party.
I swear that every time McConnell makes a public statement, part of it is to tell us "what the American people want" or "all Americans agree that..." How about if Mr. McConnell stops presuming (a) to know what each of the U.S.'s 300 million residents think and (b) to assume they all agree with the Republican National Committee's official position on everything. What this American wants is politicians to stop telling us what we want.
So, the Republicans side with the banks over the consumers once again, what a shocker!
So why is this news? Old Mr. No is behind the Republicans pilling up to ruin the Obama Presidency. What happened to that bumper stick slogan. "Country First"? The NOP could c areless about the American People or the country. They are selfish and sore losers. Quit even reporting this nonsense we already know what the Republican response is going to be to anything purposed by a Democrat or the President. Shame on their unpatriotic butts.
Another NO vote from the regressives. Mitch McConnell for his whole political career was so unyieldingly pro-tobacco industry in my home state of Kentucky, getting payola from them while saying NO to any anti-tobacco legislation, that he has no credibility with me on any of his NO's, especially his NO on health care legislation.
What is his alternative? There may be problems in the bill, but I want to see corrections or alternatives to them. This saying that there are problems is a good start, but let us hear what you are planning on doing!
"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."
You left out Phil Gramm, who was ahuge reason the system crashed in 2008.