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. mfhpr

    ATTENTION!!! THIS MORNING Obama asked Dodd to take the $50B provision out to see if REPs will now vote on it...GAME ON!!!! Let's see how they spin it now...

    April 18, 2010 11:19 am at 11:19 am |
  2. JIm,VIRGINIA

    O'bama wants to take control of the banks and this is just another step in that direction.Many of the people that work in his administration are the same people that profitited from the original bailouts.If someone did something illegal put them in jail.But,please,most of the laws that control the behavor of banks were writtten by Dems and passed by Congress that they control.

    April 18, 2010 11:19 am at 11:19 am |
  3. drew

    When speaking to the public, lie; when caught in that lie, obfuscate. When the obfuscation becomes too obvious, fall back on vague free-market ideology. This is the Republican means of denying Obama any kind of victory, despite what that victory might mean for reform. Tha's OK, thinking people see it.

    April 18, 2010 11:21 am at 11:21 am |
  4. Charles Collura

    Why is CNN giving so much exposure to Sara Palin and the Tea Party nuts.
    These people are mis-directing their anger.
    They should be marching and protesting in front of Goldman Sachs, Bank of America, Citibank, and the SEC.
    They are the crooks who have gotten us into this mess under the watch of the last administration. (Bush and company)
    Now that President Obama is trying to bring some form of regulation to these crooks who have robbed the US anf the rest of the world, we should be praising his efforts.
    The Tea Party is nothing but a bunch of biggots and paranoid individuals who believe their freedoms are being taken away.
    Sara Palin, the governor who quit her job is an enciter and is only making millions off of her idiotic followers.

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

    terry va: Shame on you for putting the job of getting humans to behave in a reasonable way on the President. You surely know better than to think he is responsible for the egregious ways that people respond to what is going on around them. Why do you not hold all persons responsible for their own behavior?

    April 18, 2010 11:22 am at 11:22 am |
  6. Johnny DC

    How can Obama possibly say "the Leader of the Senate Republicans and the Chair of the Republican Senate campaign committee met with two dozen top Wall Street executives to talk about how to block progress on this issue."?????????????????

    He personally invited the heads of Unions into the White House to discuss how the new Health Care legislation can increase their power.

    Hypocrisy flows both ways, Mr. President. You're a one-term joke of a leader.

    April 18, 2010 11:23 am at 11:23 am |
  7. Mark

    mitch mcconnell won't be happy until he guarantees the banks and wall street can do whatever they want like before then he will take all their "donations" to his cause and expand his plantation, buy some slaves and live happily ever after.

    April 18, 2010 11:24 am at 11:24 am |
  8. drew

    The funny thing is, the Republicans will have to start voting in favor of at least some Obama legislation, or the reputation they're earning fo obstructing just to obstruct will seriously start sticking. They can't keep saying "we want X too, but we want it right" and keep selling it to anyone other than the Kool-Aid crowd.

    April 18, 2010 11:25 am at 11:25 am |
  9. mfhpr

    HEY MAKOM!!! WHAT is the anti-christ??? Please tell me what an anti-christ is...CAN YOU???

    April 18, 2010 11:26 am at 11:26 am |
  10. joe

    what i understand from this bill is the big banks will pay a fee which is then placed in a fund to be used by banks if future bailouts are needed. so, in essence the bank's fund their own bailouts and not the taxpayers. sounds reasonable to me. its not surprising the GOP is against the bill. the republicans are not exactly the party of common sense!

    April 18, 2010 11:29 am at 11:29 am |
  11. MLH

    Thank you Ms. Crowley! It seems as if there is a mindset in this country (not restricted to politicians) that 'facts' simply get in the way of a good story. It is good to know that there is a journalist who will point out discrepancies or partials truths.

    April 18, 2010 11:30 am at 11:30 am |
  12. jmw

    isn't this "fund" to be funded by the banks themselves? didn't i hear that on the news last night? i don't want any more bailouts either, even if it the banks pay for it. let 'em fail if that's what's supposed to happen.

    April 18, 2010 11:31 am at 11:31 am |
  13. badger

    Does anyone really want to go back to the GWB days when business was watching themselves, all the tax breaks went to the top 1%, when gov't was listening to all our phone calls, when our 401k's were losing money faster than you could say Republican, the stock market lost 2/3 of it value, when under Republican policy the united states created less jobs ever in our history, when we took a surplus and created the largest debt, two wars, a drug plan that wasn't paid for. Remember this all happened in eight years under the Republicans. Now they want you to believe that their fiscal conservatives, making sure the Democrats aren't spending money we don't have, that they want more tax cuts for the rich, less regulation on business and wall street, no health care, that if they take over Congress they will repeal everything, that the Democrats have done in the last sixteen months.
    So for all you tea baggers and party of no people, look around you is this what you really want. The majority of the American People voted in 2008 to CHANGE this.

    April 18, 2010 11:31 am at 11:31 am |
  14. Nancy G

    "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.
    ********************************************************************************
    You could spin that in a different direction. Perfect description of Beck, Limbaugh and Palin.

    April 18, 2010 11:31 am at 11:31 am |
  15. Sue Brooks

    If there was an award for negativity, you and the party you represent would win it hands down!

    April 18, 2010 11:31 am at 11:31 am |
  16. CoffeeNotTea

    Hey Johnny DC

    Can you say "Four More years'?

    At least we have a President with a spine

    April 18, 2010 11:32 am at 11:32 am |
  17. Nancy

    Who cares about Candy cowley, John King and Dana Bash?

    April 18, 2010 11:34 am at 11:34 am |
  18. Dave

    Johnny DC talks about Unions as if they have any power left... Your corporatists broke the unions thanks to the likes of Reagan, Clinton and Bush plus the rest of the corporatists in Congress. It is no accident the middle class standard of living has been going down since 1981. It is by design to the rich can steal more of the wealth of this country. That has been the GOP record since 1981.

    April 18, 2010 11:35 am at 11:35 am |
  19. mfhpr

    HEY Johnny DC: Wanna bet? I'll bet my home, my business, my real estate investments and my life that Obama will be re-elected and will go down in history as one of the most successful presidents in our history. All he has to do is convince the open-minded people in this world of the good faith he truly has. You and the closed-minded folks on the Right will NEVER understand unless you actually open your minds to what is REAL in this society. We are NOT sheep that just drink the koolade. We listen, we educate ourselves, and we CARE about progress and the future of our society. Conversely, your kind CANNOT see that the statusquo gets us NOWHERE!!!

    April 18, 2010 11:37 am at 11:37 am |
  20. Gordon Shumway

    Considering Obama's penchant for the truth is almost nonexistant and McConnell's is almost as bad, it would be nice if CNN clarified what was actually in the bill.

    April 18, 2010 11:37 am at 11:37 am |
  21. economist

    Yes, Republicans, if you *ignore* the problem, surely it will go away! In fact, financial institutions are vital to a functioning capitalist economy. We need a mechanism to allow them to fail without dragging down the rest of the system, and that's precisely what the fund does. It is *not* a bailout and more than FDIC is a bailout.

    April 18, 2010 11:38 am at 11:38 am |
  22. Graham

    Hey everyone, its really refreshing to see so many Americans getting into the debate. Its also refreshing to see a vast majority of Americans seeing through the lies of the Republican Party (example of the biggest lie that still caries weight: "There are weapons of mass destruction in Iraq", which lead to thousands(!) of deaths and trillions of OUR money going to corrupt defense companies). Obama knows he must put forth financial reform as this country is on the brink of civil unrest (if it weren't for the extension of unemployment benefits we would have mass protests and possibly riots). The reform Obama is putting forward does not contain all the reform we want but its a starting point.

    April 18, 2010 11:38 am at 11:38 am |
  23. pc

    this moran is such a back-peddling fool. the american people are now wise to the republican party. mcConnell shows his ignorance everytime his mouth opens. this is one bill that the repubs can't color coat,they have been caught in the lies and there is no way out.

    April 18, 2010 11:38 am at 11:38 am |
  24. Brian from washington

    What?? The Republicans protecting the thieves on Wall Street? Who would have guessed it - besides EVERYONE, that is.

    April 18, 2010 11:39 am at 11:39 am |
  25. Vernon

    McConnell fights for who pays him against average Americans. Health Insurance Companies and now Wall Street. It is like a dog that barks that is what he does!!!

    April 18, 2010 11:40 am at 11:40 am |
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