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. MarkNJ

    I'm getting to the point where I ask myself the question, "if anybody in their right mind can't see that this ignoramus and the rest of the republican party are a racist non conforrming group of power hungry people who have no interest but their own. This bill inacts many of the principals of the tea bagggers and far right but they are still obstructing it's passage. Why? Because it comes from an intellectual black man who happens to be PRESIDENT OF THE UNITED STATES!

    This last year in politics has shown me that their still is the north and the south, blacks and whites, haves and have nots, and a mentality that Jim Crowe is still alive in this country.

    Shame on you people and the people who side with this display of ignorance, racism, lies, and distortion!

    April 18, 2010 10:48 am at 10:48 am |
  2. Ridgeway

    When is Bama Almighty going to raise His hands an quell the volcano? He could get to the Polish funeral. Worst case is He could walk across the water to get there.

    April 18, 2010 10:49 am at 10:49 am |
  3. hobart

    Hey Mitch,

    The fund in question is already in the process of being removed. So now you'll vote for the bill, right? No?! Your secret meetings with Wall Street CEOs don't fool us for a minute.

    It's time to Ditch Mitch.

    Why do Republicans hate America?

    April 18, 2010 10:49 am at 10:49 am |
  4. Dave

    A real idiot once said:

    "There's an old saying in Tennessee — I know it's in Texas, probably in Tennessee — that says, fool me once, shame on — shame on you. Fool me — you can't get fooled again."

    We have seen the Republican dog and pony show... tax cuts, tax cuts and corporatism... You had you chance GOP between 2001-2006 and you wrecked the country.

    We haven't forgotten. Nov can't come soon enough so we can vote some more GOP corporatists out of office.

    We need new politicak parties in this country in the worst way.

    April 18, 2010 10:50 am at 10:50 am |
  5. bernice

    McConnell is living proof of the intelligent folks in Kentucky..He is just as dumb as he looks...Rednecks/tea bags just can't except a black president, heaven forbid he's also intelligent....too much for their brains....

    April 18, 2010 10:51 am at 10:51 am |
  6. west coast conserv

    The GOP is the Party of NO...as in NO WAY are we going to allow socialism to run our country. The United States of America has been victorious over all foreign invaders. B Hussein and his socialist group are going to find that out this November as well.

    April 18, 2010 10:51 am at 10:51 am |
  7. No Way

    Spin, Spin, Spin and I think I feel an exorcist coming on.

    April 18, 2010 10:52 am at 10:52 am |
  8. mfhpr

    Hawk in Texas: Very true statement. I would add that they are bought and paid for by our taxes, as well. WE pay their salaries and benefits and they have NO interest in actually EARNING them!!!

    April 18, 2010 10:52 am at 10:52 am |
  9. Annie, Atlanta

    So let me get this straight, banks setting up their own bailout fund instead of us is bad, no re-regulation of Wall Street so they can bring us to our knees again with their greed is good, all according to McConnell? And he thinks we'll buy what he's selling because ...?

    Mitch McConnell lied to the American people after his meeting at the White House last week, in order to protect banks. To the good people of KY, don't forget it. And to the media: who has the guts to call him on this?

    April 18, 2010 10:52 am at 10:52 am |
  10. James Mason

    Since Mitch voted for the Bush Bank Bailout, we should understand his opposition to a bill (that would make the large banks put up the capital for their own sane liquidation), as – in fact – continuing to saddle tax payers with the cost to bail out such firms. Shame on you Mr. McConnell – I wish the hypocrisy of your position was more widely understood.

    April 18, 2010 10:53 am at 10:53 am |
  11. annie against biased news

    There is nothing that comes out of this so-called president's mouth that is not a LIE! Wall street is more in his hip pocket than that of any other administration. Phrase it anyway you like but any time any company/bank has to pay for one of their fellow companies/banks, it is we the REAL AMERICAN TAXPAYING CITIZENS who have to cough up more money. Whether it be for a product we buy or in higher interest rates. This so-called president (who acts more like a dictator) is doing everything he can to destroy the USA.

    April 18, 2010 10:55 am at 10:55 am |
  12. Larry

    I think we've learned our lesson about bailing out bad companies.

    Let them fail, the world won't end.

    And it gets rid of incompetent management.

    April 18, 2010 10:55 am at 10:55 am |
  13. RJ

    Mitch is a liar. He and his party has no solution except NO.

    April 18, 2010 10:56 am at 10:56 am |
  14. Annie, Atlanta

    Jim, at 10:12, you're kidding, right?

    April 18, 2010 10:56 am at 10:56 am |
  15. Mohammed Mohammed

    Oh give it a break TERRY. THE MONEY COMES FROM THE BANKS. its called..INSURANCE. Kind of like the FDIC INSURANCE if a bank cant pay the depositors their money. cut the crap already. Obama cant do right by you no matter what he does so lets just drop the facade that you are arguing over any policy and be honest that you just dont like the guy as your president

    April 18, 2010 10:57 am at 10:57 am |
  16. Adalbert

    This guy just can not stop lying.

    April 18, 2010 10:57 am at 10:57 am |
  17. CR

    The Republicans are so desperate to defend the banking industry that they are telling ridiculous lies. Requiring banks to buy their own insurance is not a bailout. The GOP needs to just go away for good.

    April 18, 2010 10:58 am at 10:58 am |
  18. Sam

    So Mitch, since your and the GOP's IQ is not that great, let me simplify it a bit for you.

    1. My neighbors and I pool some money together and put it in the bank so that whomever's roof collapses can use that money.

    2. My roof collapses

    3. We take the money out to fix the roof.

    Can we say that the bank or anyone outside of my neighbors bailed me out?

    Man, are you really that dumb?

    April 18, 2010 10:59 am at 10:59 am |
  19. mfhpr

    Ridgeway: Now THAT is a VERY intelligent statement! What an argument to justify your support for the REP party! Got any substance that we can actually debate? Thought not. Just keep listening to Beck and Rush to get your information and thoughts. Yes, I said THOUGHTS. Please, tell us what you REALLY think about our current state (economically, politically...foreign policy...). Have any education to back up your opinions??? Or do you just repeat the nonsense you hear by the REAL wing-nuts?

    And they call DEMs the Koolade drinkers...HA! Now THAT'S funny!!! I don't care who ya are!

    April 18, 2010 10:59 am at 10:59 am |
  20. Gary, Hunt Valley, Md.

    McConnell is a stooge, and a terribly ineffective one at that. What a face for a rudderless party that is begging for a chance to "fix" a terrible mess it had such a huge hand in creating. Has anybody noticed that the deepest run-ups of red ink in the last 30 years occurred with Republicans in control of White House, Congress or both? Do the teabaggers know Reagan raised taxes six times and significantly expanded size of government? No, they are too busy trying to take back their country from a black president who actually won an election _ by 10 million votes.

    April 18, 2010 11:00 am at 11:00 am |
  21. Jim

    Jilli, you're naive.

    Anything administered by the government ends up being funded by the taxpayer eventually. Anytime that the government tells you something will be funded through some special method that won't hurt you, they're lying. It never actually ends up working that way.

    Educate yourself son, you're falling for the lies and propaganda from the left. Oh wait, you're repeating them and inventing new ones, too. It's a sad day when people like you represent the average American voter. No wonder this nation is going down the tubes.

    I know you automatically believe that all Republicans are always wrong and all conservatives are evil, but you need to look at the actual ideas from both sides to govern well. The current administration has shown a total unwillingness to do that, and it will ruin America.

    April 18, 2010 11:01 am at 11:01 am |
  22. Bob Dean

    The so-called "bailout" would NOT be funded by the government, but will be removed anyway. What will McConnell and his Wall Street supporters find to object to next? Never fear – they'll find something to continue their obstruction to everything that makes sense!

    April 18, 2010 11:01 am at 11:01 am |
  23. terry,va.

    Isn't it great that Obummie has united this country!! Look at the hate in all the post. Almost all are just hate filled rambling statements with no facts in them. And most that try to have a fact in them is half twisted. I can't wait until November when all you sorry bloggers have to get a job instead of collecting my hard earned tax money that is being doled out in welfare and unemployment handouts by the socialist Obummie. Yes, I said unemployment handouts. Anyone that has collected unemployment for up to 99 weeks like Obummie is giving has to be so sorry that they wouldn't breathe unless it was automatic.

    April 18, 2010 11:02 am at 11:02 am |
  24. WILL

    just one thing,,,all this back bittin,back door dealin,smear tacks.who does tell the truth in D>C> no is on the up&up,,,,,,,the # one manipulater is LIE -BUMA ,,,,,,,,,,,,,,,,>>>>>>>>>>>>>>>............

    April 18, 2010 11:03 am at 11:03 am |
  25. Jeff in Ohio

    Shame on Mark in NJ for playing the race card in this debate.

    A lot of Americans have issues with Barack Obama and they have NOTHING to do with the color of his skin. They have to do with his inexperience, incompetence, and his extremist political policies.

    For you to inject race in this debate is despicable, deplorable, and its disgusting.

    YOU are the racist in this debate. YOU are the one who brings up the color of Barack Obama's skin.

    We will never move past racism in this country until racists like you stop injecting race where it doesn't belong. It doesn't belong in this debate.

    There are real issues with racism in this country. Shame on you for diminishing those real issues by using racism as a tool to promote your political beliefs.

    I view Barack Obama as the President. YOU view him as a Black President.

    You are the one who needs to get past the color of his skin. Good luck with that.

    April 18, 2010 11:04 am at 11:04 am |
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