April 18th, 2010
02:29 PM ET
10 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. EqualPolitics4Everyone

    Good for the Republicans. The Democrats are trying to get rid of the free market. They are trying to control everything. Auto industry, health care industry, financial industry...ENOUGH IS ENOUGH.

    The government should be doing 2 things and 2 things only. One is providing National Security. The other is getting people to work. We are losing our country right under our nose. All jobs are being shipped to India. This needs to be stopped.

    Our current administration is focused on getting people on welfare, getting illegal immigrants lower tuition rates, and giving people who don't want to work handouts. We, the taxpayers, foot the bill for this nonsense.

    Out with the Democrats, because they are making us lose our country.

    April 18, 2010 10:34 am at 10:34 am |
  2. Richard (Nashua)

    Karl from New York: "Shame on CNN for not also reporting that the "bailout fund" is provided 100% by Wall Street."

    Try reading the article Karl. A direct quote: "...the money in the disputed fund would be provided by banks themselves rather than taxpayers..."

    April 18, 2010 10:35 am at 10:35 am |
  3. dread

    sure that fund will come from the banks but just who do you think is going to be picking up the tab for that fund? It most certainly won't be the banks. That fund will be paid for by the customers of the banks.

    Thats right, you and me.

    April 18, 2010 10:36 am at 10:36 am |
  4. Jilli

    Jim April 18th, 2010 10:12 am ET

    Obama has been caught in a lie....the bill creates a future bailout fund....Fool me once shame on you, fool me twice shame on me! Regardless of where the money is *supposed* to come from, it will be paid for by the taxpayers SOMEHOW.

    -

    No Jim, you've been caught being willfully ignorant or lying yourself.

    The "bailout fund" is funded by the banks, not the American taxpayer. This fund and the additional legislation will prevent taxpayer bailouts. If a bank begins to spiral and fail, they can take from the bank funded bailout fund – if that fails, they will be dismantled – they will not be bailed out by the American taxpayer. They're finally assuming the risk for their actions.

    Educate yourself son, you're falling for the lies and propaganda from the right.

    Mitch McConnell met with bankers prior to reciting his Frank Luntz talking points – do you honestly believe he met with the bankers to determine what's best for the American public? If you do, you're as stupid as McConnell thinks you are.

    Republican ideology of deregulation and corporatism have landed us in this position. Republican presidents in the last 30 years have added more to the debt and deficit, Bill Clinton brought on a surplus – why would anyone with any sense trust another republican on fiscal matters?

    April 18, 2010 10:36 am at 10:36 am |
  5. John

    If you want to see the conservative view of the perfect government watch the movie Gangs of New York. See what happens when instead of paying taxes for government protection from cheats, murders and thugs we pay "private enterprise". Only the private enterprise that evolves with ineffectual government are street thugs, gangs, mafia and corrupt government officials. See how far the working class income goes when you pay the mafia to protect you and your family from gangs, and you pay the mafia to kickbacks to make sure that the private enterprise "volunteer fire department" doesn't burn down your home just to make a statement to your neighbors that they better pay up if they dont want the same thing.

    The private enterprises that are unleashed without government controls will suck you dry. Working class can barely survive on the meager salaries, and life is bleak and miserable. Look at any third world country today. They all have low taxes. If you don't pay a few grand in taxes you think you will have more money to buy a kid a PS2? THINK AGAIN, it all goes to cheats and corruption.

    Thank God that Democrats understand this and work to protect the working class from these leeches. I proudly pay my fair share of taxes and rest better at night because of it.

    April 18, 2010 10:37 am at 10:37 am |
  6. Sane Animals

    There's a lot of GOP apologists on here. Do you not remember the Bush years? You cannot claim to be all about limited government and fiscal responsibility while defending a party that pushed two wars without paying for them and oversaw the birth of a new layer of bureaucracy (the Department of Homeland Security) to deal with the occassional terrorist threat. Except for the 9/11 attacks, we've had practically nothing on our soil. And yet those attacks have been a pretext for pushing the death of our liberties at the hands of the foreign oil companies that pull the strings of our lawmakers.
    The most pathetic thing in the world is that the Tea Party has degenerated from a real populist movement (that was years overdue) to a group of racists and nutcases trying to protect the Republicans from accountability. Let the Republican party die! They go down, and the Democrats go with them. You have to look past November. America must be saved for the sake of our children, grandchildren, for future generations for thousands of years. End the two-party system–it's not in the Constitution, contrary to popular belief. "Democracy" is not a dirty word.

    April 18, 2010 10:37 am at 10:37 am |
  7. mfhpr

    ME: That is a very good point you make. However, I do believe this is step 1 in holding the corporations accountable for "managing" themselves, versus bilking themselves to death. Reform steps will countinue to be injected into the real regulation of these banks. We do have responsible banks in our communities that will continue to rise while the big banks will continue to be scrutinized by both the governing bodies and citizens that "trust" them with financial responsibility. Those that continue the all-out greedy tactics will falter and become dust...

    April 18, 2010 10:37 am at 10:37 am |
  8. The Veteran

    @Karl Larson: You're insane–and the reason why we have serious problems in this country. Unlike what the Gang of Pharisees believe, the answer to all of your problems is not killing more people.

    If all goes right, you should be getting a knock on your door from the FBI. You need to be interviewed, mug shot taken, and finger-printed for that comment. There should be a file in the FBI with your name on it, filed in the folder titled, "Nut Jobs, and Potential Terrorists."

    April 18, 2010 10:37 am at 10:37 am |
  9. RON

    Don't listen to these idiots as they lied to us for eight years under Bushy boy. This is the state of their mind because they done it when they were in power. How come all of these things happened under their watch.

    April 18, 2010 10:37 am at 10:37 am |
  10. Joe Brown

    McConnell is as corrupt as they come. He'd push his mother in front of a train if it profited him or the companies that buy him off..

    April 18, 2010 10:38 am at 10:38 am |
  11. Hawk in Texas

    To all you people defending the republicans, you are either very rich or you are to stupid to see what the republicans are doing. all they know is to lie. like the president has not even named anyone to the supreme court but the republicans are against who ever it is.all i see from them is lie after lie. they are bought and paid for by big buisness.

    April 18, 2010 10:39 am at 10:39 am |
  12. Olivia, Buffalo

    Te current bill creates a fun out of contributions from the WS financial companies and banks (–0% of taxpayers money is involved). It is a fund to be used similar to a bailout but it is their money 100% that it is on the hook (not the taxpayers money). So it is NOT true that the bill containts a "too big to fails" approach where taxpayers money will be providing the incentives to cheat again. All republicans begining with Mitch McConnell y Cantor are simply lying trying to create smoke and confusion .... We should not let things like this to happen. This is like the death pannels that almost destroyed the HC bill based on LIES. Don't let to "death-panel" the bill. Keep calling them as they should be " republican LIARS and the party of NO.

    April 18, 2010 10:39 am at 10:39 am |
  13. kathy

    Senator McConnell and the Republicans are a lying bunch of scumbags!
    That said now we need to move on. Stop wasting all of our time with
    their stinking crap!

    April 18, 2010 10:39 am at 10:39 am |
  14. ddt

    What kind of consultations did this thug need from the very people the government want to regulate? He went to wallstreet to look for what?This man so called leader of the republican party doesn't want the economy to recover forgetting that it is their econnomy they handed over to Democrats their economy that almost landed us into the depression. I would like to hear Dems say that they own this new economy over and over because it is coming back and let the public know that the republicans have no contributions at all to it and that should be the compagne theme.

    April 18, 2010 10:39 am at 10:39 am |
  15. Josh

    Candy, I just saw you interview with Mitch McConnell and I really enjoyed seeing guy try and turn the table on the truth. I also noticed that he never admitted why he met with the wall street bankers. This is the first time that I have seen CNN give both sides of the story back to back. McConnell is a straight face Liar who try and turn the truth around to fit his agenda.

    April 18, 2010 10:41 am at 10:41 am |
  16. Mark Ferbet, KCMO

    McConnall is a disgrace as a Senator. I don't understand how any intelligent Republican can sit by and let this idiot lead their party into the dumpster. He has taken the stance that anything the Democrats and Obama promote is evil, and will destroy the country.
    I say, MITCH, GO HOME! Kentucky deserves better than this, and this country deserves a Minority leader that actually wants to be in the working opposition, not a minority leader that just sits in the middle of the room like a two year old screaming NO NO NO, if he doesn't get his way...

    April 18, 2010 10:41 am at 10:41 am |
  17. Bert in UT

    If McConnell and the republicans believe that this fund is such a terrible idea, where is their proposal to disband the FDIC? Is it a "bailout" every time the FDIC closes down a failing bank and pays off the depositors? For all you posters who claim that even if the banks are paying for the fund the money ultimately comes from the customers, do you want to go back to uninsured bank deposits? That worked well in 1929 as I recall.

    April 18, 2010 10:41 am at 10:41 am |
  18. forwardgal

    GOPers and McConnell specifically, go out of their way to distort, twist, and just outright LIE ....ALL THE TIME! These people, particularly the 'red' from KY, know full well they and their famous idiot prez did irreparable damage to the economy of this country. I'm sick and tired of their LIES all the time 'cause they can't stand that the new President has a brain and can figure out what they've done and how to fix it....no matter how painful that is now. No one likes to spend the $$$ that it's taking to fix the mess. But hey, Obama was NOT the one in office while all these shenanigans went on with a GOP idiot at the helm and the greedy GOPers in Congress.
    They make me sick!!!!

    April 18, 2010 10:41 am at 10:41 am |
  19. Me

    RE: shakespeare's comment

    Impose a fine on a business, the business passes it on to the consumer, it prices itself out of the market, it's law abiding competitor cleans up. Conclusion: a business gets rewarded (or at least not punished) by obeying the rules. Rules–remember them? I thought conservatives were all about personal and ethical responsibility. You are right about one thing though, some people will never get it.

    Rule's allow a business to recover the cost of doing business. If the "law abiding competitor" doesn't try to recover the added cost of doing business this bailout fund would pose that it's competitor is trying to recover, it will be they who go out of business due to being unable to compete. Businesses pay their bills with money they get from their customers regardless of what those bills are called. Seems like you're one of those that will never get it.

    April 18, 2010 10:43 am at 10:43 am |
  20. Bob (Illinois)

    McConnell is a one-trick pony: No, no and no again! That appears to be all he is capable of.

    The fund is for the CONTROLLED backruptcy of a financial institution. The money does not constitute a bailout.

    Do something constructive: Retire from the Senate!

    April 18, 2010 10:43 am at 10:43 am |
  21. Ranger Rick

    CNN, shame on you! You've now have shown that you are capable of creating headlines in a way that gives this liar undue attention! I agree w/one of the other posters....the unemployed have way too much time to watch TV now and read this type of rhetoric. Most don't take the time to research deeper in to the facts; they are swayed by this type of headline. I'm no liberal, but I do have the smarts to smell another GOP skunk job. They are looking like fools at this point and anyone who follows their rant can go down w/the ship...I'm not.

    April 18, 2010 10:43 am at 10:43 am |
  22. mfhpr

    EqualPolitics4Everyone: those truly are some of the most ignorant thoughts one can have regarding the current state of our economy and what is necessary to correct it. Please look at what actually got us in this situation: deception with motive to line the pockets of the greedy. Houses and jobs were lost due to those tactics. We're (the middle and lower classes) ALL being pinched due to the fall out from the tactis of a few. The bailouts and the stimulous are meant to keep the system going. If you don't understand what would have happened to our country and beyond had those steps not been taken, I suggest you open your mind to education and seek it. Otherwise, it's your ignorance and unwillingness to see the truth that will keep the REPs voting no on EVERYTHING, even what is best for YOU.

    April 18, 2010 10:44 am at 10:44 am |
  23. terry,va.

    The bail out provision in in the senate proposal!!!! Any idiot that can read knows it's in there. Only a liar like Obummie would try to say someone is deceitful when in fact he he the one that is deceitful. This is just like the abortion funding in the health care bill. Obummie lied, lied and lied about that for months. His own party had to break his arm to come up with an meaningless executive order so they could have some cover for their conscious and to straighten out Obummie's lies. Joe Wilson was right to call Obummie a liar in the health care bill and McConnell should have said he is not only a liar but a pathological LIAR.

    April 18, 2010 10:47 am at 10:47 am |
  24. mfhpr

    Bert in UT: NICE! Now we need to hope all the followers / supporters of the liars will eventually wake up and realize that everything you said is TRUE!

    April 18, 2010 10:48 am at 10:48 am |
  25. once upon a horse

    President Obama could find a remedy for world peace and the Republicans would reject it saying it would put law enforcement officers out of work. In other words I think people other than the teabaggers see what they are doing and it's become tiresome. In a way though I blame the Democrats for letting them get away with it from day one to the point some folks won't even listen or accept the truth and when you have the new Three Stooges of Limbaugh, Beck and Hannity out there pushing the non-true agenda to these people it leads to a hard row to hoe. (yeah and FoxNews does their part as well)

    McConnell is telling an untruth and even his own town newspaper has said so, but the hardcore Obama-haters only see and hear what they want and all they want to hear is NO and wish for failure and the GOP and Co. offer just what they want to hear.

    April 18, 2010 10:48 am at 10:48 am |
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