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. Future expat

    Anyone else notice that posts by GOPers ALWAYS contain the following two things:

    1) Cynicism, insults, and just all-around nastiness
    2) A complete absence of facts or ideas

    And it's not just on this forum, it's on every forum you go to.

    April 18, 2010 11:04 am at 11:04 am |
  2. awaker

    McConnell is the most crooked person in Washington.

    April 18, 2010 11:05 am at 11:05 am |
  3. usualone

    If McConnell had any credibility it is gone. He is an obstructionist in every sense of the word. If he wants the Speaker gone, then he should go too. Where are the Republicans who care about the citizens (is that a ridiculous statement or not?)? If the President could nominate McConnell's mother as a VP or a Saint, McConnell would say "no." He is the saddest leader I can recall other than some of the others currently in the Congress.

    April 18, 2010 11:05 am at 11:05 am |
  4. Sarah the baby seal basher

    I see we have some rich bankers and stock market scumballs on here.hahaha

    April 18, 2010 11:07 am at 11:07 am |
  5. beevee

    Everything that the GOP leadership is saying and doing these days seems like a bunch of sore losers talking without any substance. My advice – Work with the president in a bipartisan way without adamently objecting to everything the administration wants to do. Then may be the american people will think better of you.

    April 18, 2010 11:08 am at 11:08 am |
  6. Mike

    Hey Bob, who would administer the fund? The government? How would they pay for that – with the fund itself, or taxpayer money? How much would administering the fund cost? What if the fund isn't big enough? What if it's raided for other uses? (after years in state government, I know no "dedicated" fund is safe)

    All of these are legitimate policy questions that deserve real answers, not personal attacks.

    April 18, 2010 11:10 am at 11:10 am |
  7. Neal in Co

    The Republicans have no credibility on the issue of financial regulation.
    The Bush administration systematically disassembled the Justice Department and SEC infrastructure that had existed for sixty years to protect against financial fraud, including firing all the US Attorneys that disagreed with them. This is slowly being rebuilt.

    Regardless of what they are saying now, history will correctly credit the Republican Party with responsibility for this catastrophe. I wish for once they would think about the country instead of their narrow political ambitions.

    April 18, 2010 11:11 am at 11:11 am |
  8. NVa Native

    McConnell has lied every chance he has when it comes to national security and politics.
    Why would anyone except the Fox Followers (the American Idiot 27%) believe him?
    And good luck with this simpleton taking on the smartest person in our government – our President.

    April 18, 2010 11:11 am at 11:11 am |
  9. JohnRJ08

    CNN, in its ongoing pursuit of FOX News viewers and higher ratings, has decided to sit on a fence in these interviews rather than pursuing good journalism. Republican congressmen like Mitch McConnell and Eric Cantor are allowed to come on the air and spew lies without being called on them, and Democrats are cut off by "We have to go to a break now." It is a concerted effort to pander to FOX News audience which CNN covets.

    Crowley knew that McConnell was lying through his teeth in her interview. She knew that what he was calling a "bail out" was a fund created by the banks. She also knew that this fund is not intended to keep any failing bank in business, but to soften the impact of their failure. If Wells Fargo fails, a bailout would definitely cost +$250 billion. But this bill ends "too big to fail". If Wells Fargo failed under this bill, it would be goner. Out of business. McConnell and Crowley both know that and Crowley should have said so in the interview.

    CNN is eschewing even the most minimum journalistic standards because it is worried that Republican congressmen will refuse to appear on its programs for fear of being called on their lies. Shame on CNN. And shame on Candy Crowley.

    April 18, 2010 11:12 am at 11:12 am |
  10. Progressive Texan

    In the same interview on CNN Senator McConnell referred to college loan reform as the "nationalization" of the student loan program. What a lie that is!

    In reality, because special interests have profited from taxpayer subsidies for too long, our government has simply cut out the middlemen by ending government subsidies currently given to banks and other financial institutions that make guaranteed federal student loans.

    Do you get it, Mitch? That's not a government take-over of the student loan program. It's not "nationalization" of anything. It's simply a better use of taxpayer dollars. I thought that was something the Republican Party was supposed to stand for!

    According to the non-partisan Congressional Budget Office, ending these wasteful subsidies will free up nearly $68 billion for college affordability and deficit reduction over the next 11 years. So these investments are not only paid for, but they’ll reduce the deficit in the long run.

    We are not idiots, Mitch. The American people understand that you and the Repubilcan party are on the side of corporate special interests, not on ours. As President Lincoln said, "You can fool some of the people all of the time, and you can fool all of the people some of the time, but you can't fool all of the people all of the time".

    April 18, 2010 11:12 am at 11:12 am |
  11. call me crazy

    I think Mitch is ticked at the bill only because he wouldn't be able to get his hands on the $50B to use for another war.

    The other part of this lie is he claims the bill was not bipartisan. His definition of bi-partisan is that it's our way or it's not. He looks like he needs to be retired and collect SS.

    April 18, 2010 11:12 am at 11:12 am |
  12. orion

    Terry, how does it feel to be a slave to corporate greed. If you're worried about getting your fair share I suggest you look up rather than down. That's where the unearned money is. Welfare and Unemployment are small potatoes. Working class people are the producers. We get taxed all along the way that the money travels to the top. You and I pay every companies taxes with every purchase. It's called overhead.

    April 18, 2010 11:13 am at 11:13 am |
  13. Kenneth of Minneapolis

    When will a LEADER emerge to lead this leaderless herd of elephants?

    April 18, 2010 11:13 am at 11:13 am |
  14. JohnRJ08

    Mitch McConnell– friend of Big Tobacco, friend of Big Insurance, and now friend of Wall Street. The man has no conscience and the people who voted him into office have no brains.

    April 18, 2010 11:14 am at 11:14 am |
  15. Mike

    Thats nobamby for you. He cannot argue a point with the truth so he resorts to name calling. The tactic does not work anymore.

    April 18, 2010 11:15 am at 11:15 am |
  16. Kierthos

    McConnell could care less if he's caught in a lie or not. The people who only watch Fox News will believe him regardless. The people arrayed against Obama and the Democrats are locked into their own myopic worldview and couldn't care less about actual facts.

    April 18, 2010 11:15 am at 11:15 am |
  17. Dave

    Mictch McConnell... making the world safe for corporatism, one lie at a time... Mitch supported the Bush tax cuts that got us ZERO new jobs while giving us 1.22 Trillion in new debt... The medicare reform bill that added another 800 Billion to the debt while giving the drug and insurance companies such wonderful gift and the Bush bank bailout that had no strings attached. Mitch there isn't a corporate donation you do not like, you faught campiagn finance reform tooth and nail you you can continue to get paid by corporations.

    You sir and your GOP are a complete joke of a party. The that GOPer that was worth anything was Dwight D. Esienhower. The rest have been corporate shills.

    April 18, 2010 11:16 am at 11:16 am |
  18. Aaron

    Seems to make sense to have the banks fund it themselves since it would make no difference whether it's a bailout fund or not if the taxpayers aren't paying it this time around. If worse came to worse, the taxpayers would have to fund a bailout again anyway if there's a chance that our financial system is on the verge of collapse. Besides, if the banks are putting some funds out there for emergencies, the bank execs won't get be getting their usual handout of excessive bonuses from the money. Best guess is that's the Repub angle....if the billions go into a fund, their croonies won't get it in bonuses.

    April 18, 2010 11:16 am at 11:16 am |
  19. Dave

    You might be confused because Republicans actually care about national security, but it's not Republicans who are abandoning nuclear defense and protecting the rights of terrorists. It's not Republicans who want to throw open the doors of Gitmo.

    Obama managed to trick a good portion of the easily-fooled American electorate into supporting him, and now we have the dumbest president in generations. He's done more damage already than the last three presidents put together.

    April 18, 2010 11:16 am at 11:16 am |
  20. MAKOM

    The world has come together and has seen what evil looks like. World leaders of all religions now have this common knowledge. Obama is the Anti-Christ, Devil on Earth, or what ever else you want to call this Demonic Figure. His words describe him, He is a False Hope, If you listen to him you will love him. He carries a Bow without an Arrow. He will conquer all through his speech, his false hoods will capture all who sit and listen to him.

    April 18, 2010 11:17 am at 11:17 am |
  21. Emma

    He does not know what he is talking about. He needs to be replaced as a spokesperson for the GOP.

    April 18, 2010 11:17 am at 11:17 am |
  22. last sane man

    If ANY of you "sheepeople" can read, read Eisenhower's farewell speech. He was prophetic when he spoke of the military/industrial complex. Money and greed run this country. PERIOD. Until someone has the balls to stand up and admit this nothing will change.

    April 18, 2010 11:18 am at 11:18 am |
  23. Dan

    Shame on you, you lyin' MITCH!!

    April 18, 2010 11:18 am at 11:18 am |
  24. RO

    Why , oh why is McConnell still a Senator??? Kentuckians, vote him out!

    April 18, 2010 11:18 am at 11:18 am |
  25. NVa Native

    When are all these lazy tea-baggers going to get a job! Seems like they are out every weekday with their hatred and lies screaming about "taking back their country". Since when did the lazy old white people own "our " country? I guess since the Dubya gave them their tax break and ran up the deficet to $1.1 TRILLION! And then left office! Such a bunch of dumb-ass rednecks.
    Can't wait for November now that the tea-baggers and Fox "Spews" are exposed for how useless and selfish they are.

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