(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
This from the party that would let the country fail just to regain political power...
Never say never...
Turtleman is one of the two most crass politicians in elected office. His nose is so far up the corporate behind that he can only smell the roses when his hosts noses are in the flower. He is a disgrace to all but one political axiom: he DOES stay bought!
If it's not proposed by a republican, always vote no. They should have tried voting no a couple of times when Bush was president. Maybe if they had this country wouldn't be in the mess it is today. Think about it. They lost the last election because of one of their own, Bush.
The posts here are a great example of what the Democrat party needs to stay in power: pure unadulterated innorance.
McConnell, obviously thinks folks other than racist tea gaggers are listening to his "not NO but Hell NO' litany.
A lot of sentiment here about the repubs voting NO and obstructing Congress, but why are they leading in the Gallup generic congressional ballot? Yet again Americans are geared to vot more of them in. Why do Americans consistently vote against their own self-interests?
Here we go again the party of no.
McConnell obviously never has studied the Great Depession.
Had the government stepped in, we would have avoided the collapse of the financial system, there by averting what became a worst worldwide financial disaster in history and would have shortened the duration of it's affects.
This is the opinion of every economist of the past 50 years of studying what was done in 1929 at the beginning of the Crash.
Allowign major institutions to fail is bad for business, bad for individuals and bad for the government.
What's more, not only have many of the bailed-out banks paid back their loans, the U.S. treasury is about to get a 33% profit on its stake in Citiback as they sell off some of thier shares.
What return did your investments get you in the past year?
Just say no; can we the American people see the Republican proposal? At least tell us what part of the plan does not go far enough to regulate Wall Street or the Big Banks?
If Dodd wrote this bill it must be filled with kickbacks and favors. I'm sure his banking buddies are taking good care of him when he retires in exchange for this. It's like letting the fox watch the Hen house.
McConnell, you look the part. You and your cronies are making a mockery of the system. I like it when you say no, however. The President and his allies are always making his counterparts look like idiots. When are you and your allies going to present something that is for the people, instead of feeding them crazy gimmicks and lies? You should be ashamed of playing games with the fate of the American people within your grasp. Stop being SILLY. Grow up and accept your responsibility. Let's stop watering the process down to Democrats and Republicans. You are making your party look shameful – almost as bad as that Cantor fellow does.
I just Wish that republicans stop saying "the American People" when they spread their lies. They do not represent me or anyone reasonable person that i know. Why would they even think of playing politics with wall street regulations. Our country suffered severe financial terrorism from these crooks and they are choosing to side with the enemy. Wake up america and vote republicans out and do buy their deceitful rhetoric. They were in power very recently and did nothing to serve our interest. I would rather keep the democrats in office rather that electing republicans for doing nothing depite full pay and health benefits they get from tax payers.
Really??? Cause saying "No" is so unlike the Republicans...(SARCASM)
Translation of McConnell's Speech..
"The current Republican party is bought and paid for by Wall Street and the Health Insurance Industry. Please don't bite another hand that feeds us."
no one trust dodd,,, its like the fox in the chicken house,,,,
Mitch McConnel voting "NO"? Is this a typo????
Here we go again, the ignorant Republicans are stamping a big NO on it. Republicans are simply put, not worthy.
I do feel sorry for the republican party and its supporters. It feels like they put on a good show with Ronnie to destroy social services behind our backs and it has gone down hill from there. Now they do not even care to really hide how they are supporting the ubber upper class. They just use one trick of phrase like this because they know there base is so blind they will not check facts or look into what they are offering to add to a bill for it to pass. At least Newt offered up a contract to America to then lie about.
– former republican tired of mindless talking points.
More to the point Senator.....part of the problem with you republicans is that your so used to talking to your own audience....the rest of us are not that stupid pal.
If the banks and financial institutions, YES, the very ones sitting in DC today telling homeowners right this moment " if they dont like it they can pay in full or return the keys"....cant keep themselves from playing their risky shell games and manipulations and toying with derivatives to the point they collapse the whole system, then they NEED TO BE REGULATED AND REFORMED.
How come every time these corporations gets in trouble and bailed out we are then told we cant possibly reform them or control them or they would die or they would be in trouble...blah, blah, blah...total crap.
I say pull the free enterprise plug on all of them and let the government control it until or reform it until these idiots start acting responsibly instead of like unwatched spoiled brats.
"But McConnell suggested Tuesday that any new reform bill must include a categorical provision that the government will not bail out financial companies."
Didn't BUSH pass the TARP which bailed out financial companies?? Also, putting this in the bill means 'diddly SQUAT' – it means NOTHING because if a RepubliCAN'T ever become president again, they will take the clause OUT and do the same BUSH did... Give me a break!!!
Wow, what a shocker! I thought for sure they would go along with this bill. I mean, they've been SO accommodating to the president thus far...
To all of you idiots who just read the headlines and then post a comment: Much like health care reform, he is not saying that he is against Wall Street reform, he is against the bill in its current form. Since the current dictatorship gained control of all branches of goverment, people have forgoten what debate is about. Instead it is sign on to 1 of Pelosi's idiotic ideas withou cany changes or comprimises, or vote no. With those being the 2 options, being the party of no is not such a bad thing. If the government is not working fro the people, shut it down.
"okay, guys t's not funny anymore. who stole my jaw?"
Are the leading republicans of the republican Nazi party mentally challenged?????
1. George ' 3 below plant life' Bush & his republican butt-boys were the reason the banks needed to be bailed out.
2. A 50 billion dollar fund, funded by the same people/group that might need to be bailed out is enough if this legislation is passed.
3. The republican Nazi party does NOT wish to help Americans in debt, change the Credit Card laws or force their cronies on Wall Street to become responsible at their own expense.
4. The leaders of the republican Nazi party must be either mentally challanged or just plain ol' stupid because with an intelligent President, an honest government & the right laws, the American taxpayer will Not need to bail out the BAD GUYS in the future.
The NEW NAME for the republican Nazi party should be .....
The Redumblican Nazi Right Chicken Wing Party!
You're absolutely right McConnell. Let's not do ANYTHING. As for bailouts, although I don't like them either, unfortunately they were necessary or we'd be in much worse shape now. In typical regressive fashion, McConnell would like to limit our options, by not allowing any bailouts in the future, even if they were the only way to save the economy. Real smart.