(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
The aspect of no more bailouts, should be a MANDATORY aspect of the financial reform, and if it isn't, then reform needs to start from scratch, also.
Another aspect, is that there must be caps on all bonuses, and especially the compensation packages for top execs.
Bill, what bill.......did the Dems send it to us? Then just vote no, that's what we do. Who cares what's in it or who it protects. Well, actually we do care because it might piss off some of our big donors on wall street. So, again, just say no.
I know hate McConnell.
McConnell convienently forgets that most of the big banks have already paid the money back. I personally believe that the banking system needs to be reformed in a way that no bank is "too big to fail". As long as certain banks know that they can't go out of business, they will continue to engage in questionable tactics. That being said, McConnell is full of you know what. I would respect him more if he just came out and said "I urge my fellow Republicans to vote against the bill for the simple reason that the Democrats want to pass it."
Filthy republicants, why do they hate Amercians so much. Getover republicants and do SOMETHING, ANYTHING, to help govern this country instead of trying to make the president look bad.
Never say never.
dear republicans....we are so sick and tired of this NO thingy.how about working with the democrats for awhile and maybe just maybe america will be healed from the 8 brutal years of republican ran government, americans deserve both parties working together to fix this mess that your mindless leader did to this nation and it will take more than 1 year for the democrats to fix the disaster. if the republicans don't want to be part of the repair process, they need to have their paychecks stopped until they earn their keep. this old dude needs to retire an go away anyway. he makes me sad just looking at him.
The Party Of Dr. No Is At It Again! The Just Say No To President Obama War Cry. Followed By The Republican Health Care Trail Of Unhappy Tears.
Yeah right, just an attempt by Republicans to prevent regulation of the financial industry using a more "palatable" approach.
whats new? rather it is good or not
As usual, the Republican "plan" is to say "no" and do NOTHING and let the "free market" rule.
block everything except jobs!! nov is coming – time to put the annointed one's agenda to rest
I am amazed that the king of the party of NO would want his comrades to vote no on the Wall Street bill. There is absolutely NO chance of any Democrat bill getting his support. After all that is the republicans only plan of action, just say no to any Obama or Democrat sponsered legislation.
How do the repubs get the nerve to even mention bailouts when they should carry the guilt of massive bailouts that left our country in the mess it's in now? Mc Connell is a dangerous man .
Hahaha. Y'all are so naive. Do you really think our corporately owned congress critters (on both sides of the aisle) or our corporate sellout president will do anything concrete to slow down the Wall St. gravy train? I can't wait to see the final legislation. Wait until the "green energy" bubble bursts in about 7-10 years and we're all stuck paying for global capitalism's failures once again. Suckers! Have a nice day!
I don't know why we need to remove the safety net from the bill. The government is not in the business of bailout in America but it was found necessary for the good of the domestic and as well as for the global economy. Mitch's GOP voted for BUSH bailout in 2008 and now he is opposing his own party. I think he is playing political game at the expense of tax payers.
McConnell tells GOP to vote "no" ( fill in the blank ... every bill – every proposal ... on and on forever!" )
Never mind the bailout was proposed by Bush appointees & signed by President Bush ... nothing before 2009 should be mentioned ... including the fact that the GOP did nothing on financial reform when they were ruling the country! Or health care, or immigration reform or SS reform ... or anything but war! war! war!
No bailout he says? Oh yes the bailout that Republican and ex-CEO of Goldman Sachs forced down our throats under George Bush. How convenient that McConnell plays dumb and points the finger at Obama for everything, yet ignores the fact it was Republican laissez-faire do nothing policy that led to the meltdown in the first place.
Mitch McConnell lost all credibility with his distorted stance on the health care bill. The GOP would rather lie to their constituents and hurt America's future than give reasonable regulation to their Wall Street buddies.
The Wallstreets gains will not ( in the mid term) be effected with a good reform bill. These ubber rich Wall Street folks need to be rained in and rained in hard with prision sentances if they do not play fair.
McConnell and his butt buddies are the reason for this problem we are pulling our selves out of but the republicans will continue the rant and say no because they feel that they will be back in power next year. I really hope not !
Well Well the party of NO Saying no shocking and now they are caring about Bank bailouts pluuuuuuuze when Bush and Paulson and republicans gave the Bank bailouts begged for them and while your saying No do you have any other alternatives??? oh I know deregulate so we can have this mess again god the republicans are P A T H E T I C!
The Republicans had EVERY OPPORTUNITY to address finanical regulation reforms. They were present for all of the committees this bill had to go through. THEY CHOSE NOT TO PARTICIPATE. Their lack of sincerity and integrity is mind blowing.
The GOP wants little or no restrictions on these guys so they can repeat the last meltdown. Again they show no regard to the average American in this country.
It is really a crime that McConnell didn't show some restraint when Bush was running up the deficit OFF BUDGET..............Imagine a Rebub telling the troops to vote NO (insert shock here)
Do you see the irony vote no so the banks can keep doing what they have done and lining our pockets and we look good in the process.we're hip to your games rethgs,you better get to work and pass reform you bums