April 18th, 2010
02:29 PM ET
4 years ago

McConnell: There's a bailout fund in current Wall St. reform bill

ALT TEXT

Sen. Mitch McConnell responded Sunday to a personal attack directed at him by President Obama. (Photo Credit: CNN)

Washington (CNN) – A day after President Obama singled him out for personal criticism, the top Republican in the Senate defended his party’s claim that the current version of a financial regulatory reform bill contains a mechanism to initiate a bailout of faltering Wall Street giants.

Obama used his weekly Internet and radio address to take a rare personal shot at Senate Minority Leader Mitch McConnell, R-Kentucky. McConnell “made the cynical and deceptive assertion that reform would somehow enable future bailouts – when he knows that it would do just the opposite,” the president said.

Related: Obama touts financial reform, says GOP stance 'deceptive'

Appearing on CNN’s State of the Union Sunday, McConnell defended the position Senate Republicans have taken on the bill.

“There is a bailout fund in the bill that was reported out of the [Senate] Banking Committee,” McConnell said, “the partisan bill that came out of committee on a party line vote. I don’t think that’s in dispute.”

Watch: McConnell responds to Obama

When reminded by CNN Chief Political Correspondent Candy Crowley that the money in the disputed fund would be provided by banks themselves rather than taxpayers, McConnell responded, “Regardless of where the – how the money is produced, it is a bailout fund that sort of guarantees in perpetuity that we’ll be intervening once again to bail out these big firms.”

McConnell also noted that the administration itself has signaled its willingness late last week to remove the $50 billion from the final version of the legislation. On Friday, all 41 Republican senators sent a letter to Senate Majority Leader Harry Reid, D-Nevada, asking that the current version of the legislation be set aside and that Democrats again initiate bipartisan negotiations with the Republicans. The letter did not threaten a Republican filibuster but suggested that one could be in the offing.

Related: WH scrutinizes liquidation fund in Senate bill

McConnell said his party wants financial regulatory reform.

“I don’t know anybody in the Senate who thinks we ought not to pass a bill. The question is: What’s it going to look like? We want to make sure that we don’t set up a system where whereby we empower the government to continue to do what it’s been doing – running banks, car companies . . .The American people are saying we don’t want another bailout but they also don’t want a kind of perpetual, government massive interventions across the board running private businesses.”


Filed under: GOP • Mitch McConnell • Popular Posts • State of the Union • Wall Street
soundoff (298 Responses)
  1. Ryan

    McConnell's flaw is
    1. He repeats his talking point that the bill has a flaw regarding bailouts..yet never sights specifically the provision.
    2. The supposed bailout clause is CLEARLY not funded by the taxpayers but by th banks themselves as a pre-emptive measure...and McConnell's only response is a childish "uh, no it's not!" when it Is! Absolutely clear!
    3. McConnell is banking on his constituants to be too lazy to read the bill themselves. It's very hard to sell a lie or monger fear to informed people. However, if you want to rally paranoia...then you've got it made in the shade, especially with conservatives. They vote on thier fears, misinformation, racism, class warfare, religeous beliefs....basically all the unknowns in life is what justifies thier voting patterns. Nothing we didn't know already and Mitch McConnell is counting on neurosis. Neurotic people will believe the sky is falling before sticking thier head out the window to see fo' themselves.
    4. If the GOP was so clairvoyant then howcome every worst case scenario they've ever predicted ever has NEVER materialized??

    April 18, 2010 02:57 pm at 2:57 pm |
  2. Patrick

    You ever wonder why you sing or whistle that commercial tune every now and then especially in the shower?
    It's not because the song or tune is great, but you hear it so many times that it sinks into your brain, and then all of a sudden, one day you are singing.
    Same with the Republican Lies and gospel according to their public relations guru – Frank Lutz.: tell the same lies over and over again all the time and people will start believing it.

    April 18, 2010 02:57 pm at 2:57 pm |
  3. Perry

    Isn't the idea that if there is a bailout, we the people do not have to do the bailing?

    If the banks don't want a bailout fund funded by themselves, no sweat. Let them go under. And if there are more bank failures than the FDIC can handle, let the people lose their money.

    The president has already signaled that he is willing to let the bailout fund be removed from the legislation if it is a sticking point for the Republicans.

    April 18, 2010 03:00 pm at 3:00 pm |
  4. Steve in North Carolina

    Despite all of the political name calling against McConnell by many posting here, what he said originally was true. There was a bailout fund in the bill. A fact confirmed by Obama himself, when he asked that it be removed. People need to get off their political soapboxes and start looking at facts to make in order to make a proper decision about things instead of knee jerk reactions because the person is a democrat or a republican.

    Calm down, get the facts, and then see if your representatives are best representing you. If they are re-elect them, if not elect somebody else.

    April 18, 2010 03:01 pm at 3:01 pm |
  5. Time4Change9

    Mr. Mike is whining that the plan contains a $50 billion contingency plan funded by the bankers, then when Obama offers to placate the repugnicans by removing it from the plan he whines about that. We get the message that the repugnicans are dead set against any plan because they are licking the boot of their masters, the bankers. We get the message that repugnicans understand that Obama is the best president this country has had in a long while and if they don’t sabotage the country and ruin his presidency soon that they will be in the minority for a long time.

    April 18, 2010 03:09 pm at 3:09 pm |
  6. Chuck

    McConnell, how can you sleep at night? You are in bed with the bankers and you know it. If there is money around, you are right there with your hand out wanting your share before anyone else. The only financial reform for you is lining your pockets with their hand-outs to you. How can you sleep at night?

    April 18, 2010 03:11 pm at 3:11 pm |
  7. TT

    What's wrong with asking banks to contribute to a fund for a rainy day? If they want to save money to bail themselves out, that a good move, because let them fail would be disastrous to the country. To make it appear like a bailout money from the taxpayers simply to say no is disingenuous.

    April 18, 2010 03:13 pm at 3:13 pm |
  8. steven harnack

    I'm so sick of lies and slander being called "opinion". I wish President Obama had used stronger language to expose McConnell. A small % of the permanent wnignuts would accuse him of an unfair attack no matter what he said but I think a vast majority would appreciate plain, blunt words. We need to stop thinking that you can counter blatant lies with reasonable arguments.

    April 18, 2010 03:17 pm at 3:17 pm |
  9. Mike

    This is the financial reform corollary to th "death panels" in health care reform. Although they tried to sabotage progress through obfuscation before, by now the GOP is completely transparent in its use of misinformation. Their aim has nothing to do with what is good for the country. It has everything to do with serving their own political advantage. It's sickening, McConnell is sickening, and he deserved to be called out by the President.

    April 18, 2010 03:19 pm at 3:19 pm |
  10. harry

    Well Mitch,
    juding from the above comments, you lied to the American public. Please clarify your points again. Better still let your office do their research and come out with a better plan.
    NO..........

    April 18, 2010 03:20 pm at 3:20 pm |
  11. Bill

    A half truth is a whole lie. Thanks Mitch for the half truth and good luck to you and your friends next election because many of us are fed up with this stupid lawyer double talk.

    April 18, 2010 03:27 pm at 3:27 pm |
  12. Eddie B.

    So if the banks will be forced to bail out themselves, then how is this a government bailout? McConnell is misleading the people and he knows it. He along with other leading Republicans met with 12 top Wall Street execs and insured them that they would not support this bill. That is the truth!!!

    April 18, 2010 03:38 pm at 3:38 pm |
  13. Independent

    Got news for McConnell, George Will said the bill will pass at least by 70....George Will said that, that is the first time, well maybe the second time he has backed a Democrat....

    McConnell is the one who said, it didn't make any difference what President Obama brought before the Congress the Republicans were always going to vote NO...Imagine that....

    April 18, 2010 03:38 pm at 3:38 pm |
  14. kensga

    mitch mcconnell wants to play games rather than legislate, its been this way for more than a year now and it will continue unless the voters finish the job they started back in 06.

    April 18, 2010 03:40 pm at 3:40 pm |
  15. R. Wood

    I'd have a lot more respect for Sen. McConnell if he just told the truth.
    That is, Republican congressman want NO financial regulation on the corporations that elect them, then later, in a form of deferred bribery, pay them millions to be lobbyists.

    April 18, 2010 03:50 pm at 3:50 pm |
  16. Eddie B.

    He states that the bill came out of the finance committee voted right down party lines, but his own senator,Bob Corker from that committee came out infuriated with his own party for giving no input on the bill.

    In closed-door meetings, Republican lawmakers urged Mr. Corker not to vote for Mr. Dodd's bill without other Republicans, people familiar with the matter said. Many Republicans warned against the risks of breaking ranks.

    "I think for us to be effective, we need to stick together," Sen. Judd Gregg (R., N.H.) said earlier in the week.

    They are the party of no and they are for big business, not small taxpayers.

    April 18, 2010 03:54 pm at 3:54 pm |
  17. Anonymous

    This is what I've been waiitng for- McConnell having to explain his oposition with facts.
    If the banks are putting up the money and not the government, then its a "reserve fund" not a bailout.
    Why is "gotcha" politics so important to these guys? Why must they continually lie to us about what is really happening?
    We must stop this! Call out your representitive every time tye pull this crap!

    April 18, 2010 03:59 pm at 3:59 pm |
  18. CB25

    Even when confronted with the fact that the banks will pay for the so called bailout not the tax payers Mitch McConnell continues to try to deceive us, really!!! Are we really that stupid GOP?!!! Used to be a Republican now I'm embarrassed to be registered as such...

    April 18, 2010 03:59 pm at 3:59 pm |
  19. Tony

    Oh, come on now, Mitch. We all know you and Boehner met with several of the biggest banks a few weeks ago and they promised to give you big suitcases full of money to fund your re-election campaigns if you thwart this effort by Congress to reign in their lucrative DERIVATIVE trading scheme which, by the way, is monopolized by only a few of the largest banks. This scheme is widely acknowledged by our top economists to be the main culprit of what took down our economy along with the rest of the WORLD'S economy and in turn is now affecting millions of Americans costing them their homes and jobs. You can't expect us to believe what your saying, now do you? I think your credibility in this department is pretty much shot. So, please, sit down, shut up, and let the rest of us try to fix the mess that you and your Republican President and Congress have gotten us into in the first place. Not all of us are easily fooled by your treachery.

    April 18, 2010 04:06 pm at 4:06 pm |
  20. jdmintexas

    Wow Mitch, reading the posts here, you have to admit you are not exactly getting rave reviews. But then, it is difficult to explain how prohibiting lying, cheating, and stealing by Wall Street is somehow unamerican. That is a tough one.

    April 18, 2010 04:09 pm at 4:09 pm |
  21. Jerry

    McConnell and all the GOPers are all for big business and letting the bankers and oil companies fleece the American people. Where is the outrage from the Tea Party crowd. President Obama wants to regulate the big banks and keep the Wall Street crowd from bringing down the economy.

    Goes to show you the tea party thing is republican and big business controlled. Here tea partier speak, down tea partier, play dead tea partier. Good boy, now roll over when we want you to. Good Tea Partier.

    April 18, 2010 04:11 pm at 4:11 pm |
  22. Beth

    This is simply a word game. There is no bail out available with this legislation. In fact, the White House removed the funds provision yesterday.

    April 18, 2010 04:15 pm at 4:15 pm |
  23. Edwin

    What is bad is bailouts by taxpayers! This fund helps prevent that. So it is GOOD. That makes the unanimous GOP opposition clear: they oppose it because they represent banking executives.

    April 18, 2010 04:20 pm at 4:20 pm |
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