(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
"No" means yes for the American way, "yes" means yes to the Euro, socialist, entitlement, appeasing way. You decide.
seems to me that this bank bailout business that McConnell is so opposed to STARTED with Bush and his Republican cronies bailing out their buddies in that hotbed of greed and stupidity called "banking"
NEWS FLASH, MITCH!:
The bailout worked! We didn't fall off the cliff of economic disaster because the bailout worked! Most of the banks we bailed out have paid us, the taxpayers, back . . . with interest!
ANOTHER NEWS FLASH, MITCH:
The majority of Americans are not as stupid as you, the Party of NO, seem to think we are! Just because the TPers are loud and obnoxious that does not mean they are even CLOSE to being the majority in this country! Stop playing to them and get a clue, Mitch!
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.
Would someone tell Mitch McNutty that the bill regulates Wall street , not bail them out. If he would have done his job in the pass 6yrs ago this would'nt be a issue. He was one of the clowns that voted to the first 700billion bailout. Republican talk a good , game but they only fool themselves.
Unfortunately the tebahhers only need to know -What to do and never bothered by why to do.....GOP is not a party but a lifestyle wherein living and lying become interchangable
All those "LOYAL" Republicans had better do what they are told or else. So much for independent thinking.!
This gentleman needs to retire.
This type of reasoning does nothing to solve the serious problems facing this great country.
It is nice to know that they are concerned about deficits. However, they seem t have woken up 8 years too late.
We need to spend money on keeping people alive.
What happened to these pro-life Republicans.
Who is paying you off McConnell?
Unlike all of the others who made comments, I don't know what is in the bill. However, I do know thta both Dems and Repubs get huge sums from Wall Street. Don't trust any of them.
How about if it was a NIGHT-OUT to the SEX SHOP or the STRIP-JOINT ? Hell 'YES'. youbetcha!!!!
At the rate that the Republicans want to take this country, we'll be Norte Mexico in no time. No offenese to the very hard working peoeple of Mexico,but look at what it has become. People in tbhis country are making less, and working more. I love my job, I have a great passion for it,but I work my ass off and myself and my co-workers, are more than productive.
But go ahead republicans. Vote no against reform. Us poor middle-class workers will keep making massive profits for big business, some will turn a profit, others will lose money,but be sure those at the top will get a big slice. Meanwhile, those at the bottom will be given their pink slips, as despite their productivity, you will never be able to satisfy the money hungry CEO's at the top.
All you need to do is look at big oil two summers ago.
After 20-30 years of service at company 40 to 50 years ago, they gave you a watch, you a pension or retirement to fall back on. Now.....the minute you start affecting the bottom line i,e......your salary gets to big for its britches, your a&^ is out the door
The UBER rich, and the VERY poor. If you have ANY resemblance of wealth, you need guards, or have to pay off the police.
If the far-right has its way...those without, or in need of safety will be on the fast track to Canada.
Whatever, it is a shame but true that there is a lot of anger fueled by biases, prejudices and emotions being excited by aggressive appeals to self-interests. The Tea Partiers, conservative groups and others from both sides frequently exhibit a distasteful side of American free speech and deserve criticism for their narrow self-focus and their costly blindness to being exploited ... but the real fault lies with those doing the exploitation. Their are those few who want to maintain status-quo and to return to 'more of the same' as it greatly benefits them, and as has been seen no one else, and they are putting every effort and all of their substantial power and capital into scare tactics and emotional appeals to self-interests to excite, control and manipulate public opinion. It worked for them and we paid the price for the deception when the cries in 2000 and 2004 were for focus on Christian values that just weren't there and the resulting exploitation of 2001-2008 was very costly. Both sides have faults and problems but the people really need to start recognizing that the subterfuge constantly being used to perpetuate the con and to continue the exploitation disguises a total neglect of responsibility and a concentration on benefit for only the few. It should be clearly understood and unacceptable that better than 90% loose while less than 5% gain when the subterfuge works and people’s emotions are manipulated with public opinion then controlled. Worrying about taxes may be futile when more real spending power is lost and the majority is then actually looking for some effective government spending/help. Simply avoiding the con should be a major concern, as has been drastically proven. One clear warning may be when they offer nothing constructive, only criticism and obstruction in an effort to justify returning to ‘more of the same’ that has already failed.
Surprise - McConnell said to say "no." It doesn't matter than these institutions are paying us, thye Americans, interest. If these institutions do fail, so does our country...except those who have their monies hidden in mattresses.
Er, aren't some of those banks about to repay those loans at an enormous profit for the government?
All theDems have to do is put in place a provision to prevent bailouts by the Fed. What is so hard for the Dems to understand that if they do this they will get the Republican support.
CNN, please report on the meeting McConnell and John Coryn had with hedge fund managers and other Wall Street elite in which they discussed and debated strategies on how to kill Wall Street Reform.
So I'm not surprised McConnell is saying "no" yet again to this reform effort. The folks who got us into the mess like jungle casino capitalism and taxpayer bailouts when they get in trouble. It's time to put a stop to that just as we did after the 1929 stock market crash.
How many Red Herrings can the Red Party come up with. I hope the electing public is foolish enough to put that Red party back in power. They will get just what they have coming.
All repubs want to do is poke holes.....And SAFEGUARD Wall Street
Um, wow. So I guess what McConnell is REALLY saying is: "Never again should American tax-payers give Republicans their way!!"
Now THAT's change I can believe in!
Take care of your wealthy buddies. Then you'll be free to pander to the trailer dwellers, for votes in the fall. The really sad thing, the people dont seem to have a clue when it comes to the hypocracy of the republican party.
Vote NO? That's something different for those do-nothing anti-American Republicans! What a sham!
No more gops anymore, waste of time and energy
I don't think I understand. Everyone, including the President sternly stated they were opposed to bailouts by U.S. taxpayers. So why is there a provision to cushion the bankruptcy with $50 billion. Are these bailout funds are coming from China's taxpayers?
there is a place beside Hoover in the history books for you mitch.....