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. Tim

    What do you expect from a pig but a grunt.

    April 13, 2010 12:33 pm at 12:33 pm |
  2. Kathy

    The proposed legislation ATTEMPTS to eliminate the possibility of another economic collapse. But what if it doesn't work? What if some greedy Wall Streeter finds a loophole that leads to another economic failure? McConnell's suggestion to categorically forbid another government bailout could leave we the people selling apples on street corners and eating bark off of trees.

    April 13, 2010 12:34 pm at 12:34 pm |
  3. Ryan

    He's against a bill that has t ece. Been drafted yet?!?!

    April 13, 2010 12:35 pm at 12:35 pm |
  4. Jacq

    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 or offer a amendment to the bill!

    April 13, 2010 12:35 pm at 12:35 pm |
  5. Voice of Reason

    The GOP has figured out that the way to make this administration look bad is to slow down every bill, to make everything a hard-fought land war. Their goal seems to make every peice of legislation (whether good or bad for the people) another dragged-out war of attrition in the media.

    Mr. McConnell – Why do you hate the American People?

    April 13, 2010 12:36 pm at 12:36 pm |
  6. rob, austin tx

    No bill will ever be right in either parties eyes. But for real, things in need of change need to change and urging an entire party to say no just because it doesn't agree with you on one part is not the way to do it.

    April 13, 2010 12:36 pm at 12:36 pm |
  7. Ryan

    He's against a bill that hasn't even been completely drafted yet!!

    April 13, 2010 12:36 pm at 12:36 pm |
  8. Fed Up!!

    The Party of NO! is using the bail out issue, which probably won't ever be needed again, as a transparent excuse to kill a bill that will most definitely reform those questionable practices that got us into this mess in the first place.

    Gee Mitch, you wouldn't want to place any reform measures on those big fat Wall Street donors who fill those GOP coffers, would you?

    April 13, 2010 12:36 pm at 12:36 pm |
  9. geecee

    What a feeble-minded jerk! Do this Country a favor and retire! All you know how to do is spread hate and discontent. Your party of NO has done absolutely nothing in the past two years to help this Country get back on its feet after the worse recession since the depression, which was caused by you Republicans under the Bush/Cheney administration. How you guys can even show your faces in public is beyond me!

    April 13, 2010 12:39 pm at 12:39 pm |
  10. Barbara Independent in NY

    Of course the Republicans don't want any reform of Wall Street, who would line their pockets. Another example of Republican disdain for Middle Class America.

    April 13, 2010 12:40 pm at 12:40 pm |
  11. AF.

    ....One other big mistake for taxpayers is to keep wasting money on congressmembers. Members of congress are just fighting to keep their seat but never mention the american people who don't have a seat and sitting on the floor.

    April 13, 2010 12:40 pm at 12:40 pm |
  12. Connie in Tennessee

    The RePugs don't want reform on Wall Street. All of their friends work there.

    April 13, 2010 12:40 pm at 12:40 pm |
  13. Lori in St Pete

    Interesting stats Mel, but they only tell part of the story. There were ten repub presidents in the last 100 years, and they served for 52 years vs. 8 dems serving 48 of the last 100 years. These stats, when combined with Mel's stats beg the question: Can America afford another rethug in the WH, or in the majorit in the house/senate?

    April 13, 2010 12:40 pm at 12:40 pm |
  14. hongli

    Why are the Republican Leaders so sad and never smile ?---–Your answer------ The Republicans are all PATHOLOGICAL LIARS. Let me be as clear as I can to all Americans. A PATHOLOGICAL LIAR is one who believe his or her lies are "GODLY TRUTH". This my friends is what the Republican Party can do to human beings. George W Bush took it one step further. He believed in all the lies he was telling the WORLD . Example--– Let's just say Iraq.

    April 13, 2010 12:41 pm at 12:41 pm |
  15. America

    OK..... Soooo, McConnell is saying there isn't enough regulation? I was thinking they(Republicans) were against more regulations. I still think the Republicans should reject their Socialize Health care provided to them by the Tax payers. Just to be in protest against Socialism.

    April 13, 2010 12:41 pm at 12:41 pm |
  16. Not All Docs Play Golf

    Unlike Pence, Boehner, McConnell, at least the Dems can make their faces smile in public once in a while. This constant negative NO strategy from the regressives will never endear them to most Americans, who really do rally around a more HOPEful message when they hear it.

    April 13, 2010 12:42 pm at 12:42 pm |
  17. Eduardo

    I checked his college records. He flunked Econ 100.

    April 13, 2010 12:42 pm at 12:42 pm |
  18. Avg Guy in Red State Kansas

    Once again Mr. McConnell is declaring war on hard-working men and women and trying to make it look like he's the champion of the middle class. What hypocrisy!

    Had it not been for 8 years of an unregulated financial sector you and I wouldn't be in the mess we're in.

    Mr. McConnell... you obviously hate Mr. Obama AND the rest of us. You, sir, should be ashamed of yourself!

    April 13, 2010 12:43 pm at 12:43 pm |
  19. Washington DC Insider

    I am so frustrated with Democrats/Republicans who are so eager to jump on the opposition's throat whenever they say something. The Wall Street Bill is an example of fiscal conservatism (blue dogs like myself like this). We don't want to reward Wall Street for their greed.

    Look at it this way, the economy tanked and Investment Bankers got their bonuses anyway. At the end of the day Wall Street makes money at the people's expense. I am all for not allowing bail outs.

    Why do you think so many Investment Banks paid off their loans? They didn't want to play by the government requirements for those loans. No more junkets for their employees, no more crazy bonuses even though their investors took huge losses, etc. etc.

    Wake up people!

    April 13, 2010 12:44 pm at 12:44 pm |
  20. Anonymous

    Banks have paid Senator McConnell, and the G.O.P GOOD MONEY
    to vote NO!!!

    April 13, 2010 12:45 pm at 12:45 pm |
  21. Dumbasrocks [R]s

    No surprise here. A partisan-based flip-flop by the party of 'no'. First, they are for reigning in Wall Street, amd then they are not. And what pure drivel they give as excuses for their flip-flopping. THEY WANT TO MAKE SURE THAT NEVER AGAIN CAN THE GOVERNMENT INTERVENE TO AVOID AN ECONOMIC COLLAPSE INTO DEPRESSION, LIKE WAS DONE ON A BI-PARTISAN BASIS OVER A YEAR AGO.

    What absolute stunning stupidity. And then we have a libertarian come on here to state that the American taxpayer needs protection from the Government protecting its own citizens. It would be humorous, except that so many people believe in this stupidity. Hey Henry: I think Texas claims it wants to secede. Please move there, and vote for secession. And then run your social experiment in unregulated insanity and hypocrisy there. In America, thank god the citizens are still the government, and we do not need extraneous laws that would prohibit us from helping ourselves via the tool of government.

    April 13, 2010 12:45 pm at 12:45 pm |
  22. FM

    Why people waste their energy and time to go and vote NO. Can't they instead do anything else which is beneficial to them!

    April 13, 2010 12:46 pm at 12:46 pm |
  23. get real

    This is getting really old. No on financial reform. Next up, No on the nuclear reduction plan. After that, No on whomever Pres. Obama nominates to the Supreme Court. Anyone want to bet against my predictions?

    April 13, 2010 12:46 pm at 12:46 pm |
  24. Kate

    Yes, please resign...Is the word "NO' the only word in your vocab., Mitch?

    April 13, 2010 12:47 pm at 12:47 pm |
  25. p

    He and Boner are prime examples of Party before Country, no matter what.
    Whatever this creep from Kentucky is for..
    I'm AGAINST!

    April 13, 2010 12:48 pm at 12:48 pm |
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