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. Alisa

    I know since the bailouts some banks are no longer participating in FDIC. Bank of America is one of them.
    Banks make money off of MY money, your money, NOT their money. If they need to now create a fund, believe you me, it'll be coming out of our pockets, not the banks.
    I'm not sure what is so difficult to understand about that.

    April 18, 2010 11:41 am at 11:41 am |
  2. Dave

    Mitch McConnell and the rest of the GOP should be sent packing. The have mismanaged the country on security, finances and diplomacy. See Mitch... you have this thing called a record... you can hide from your corporatism.

    Lets put an end to corporatism in gov!

    April 18, 2010 11:42 am at 11:42 am |
  3. Socrates in Leominster

    Wake up Americans.. republican politicians are the prostitutes of the exceutives of Wall Street, Pharmaceutical, oil and defence companies.. They could care less if anyone would try to do good for this country.. ALL THEY CARE is their pockets... and they say they believe in GOD. These republican politicians are greedy, mean, hateful, selfish, they are judgmental.. and ALL OF THEM think they are better than blacks, spanishs, oriental, gays and lesbians.. and they see us from up their high horse.. and I have pitty for them because they live in a world of hate and selfishness. I am proud to be LIBERAL.. I can help those people that need help doesn't mater if they are democrats and republicans... that is what COMPASSION means.

    April 18, 2010 11:43 am at 11:43 am |
  4. Michael

    McConnell and the repubs would rather support rich bankers than people who have worked all their lives only to see their retirment reduced to zero when the economy collapsed due to so-called "free-market" deregulation that the republicans called "trickle down."

    Remember when "Reagan the Dunce" promised that if we just let business run without regulations all the profits would eventually get down to the "little people?"

    THE CURRENT FINANCIAL MESS WAS CAUSED BY 30 YEARS OF REAGANOMICS.

    How's the "trickle down" economy working for you these days?

    If it's working well for you, keep voting republican.

    On the other hand, if you're one of the 80% of Americans who hae suffered financially due to de-regulation, vote Democrat.

    April 18, 2010 11:44 am at 11:44 am |
  5. mfhpr

    I say AGAIN>>>

    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 11:46 am at 11:46 am |
  6. Sigh

    This is so stupid. The bailouts are there because if these banks do fail, that means virtually EVERY business in the USA who needs a loan to expand and continue will not get one. It will be a domino effect of the entire nation going under! They've explained this a million times, its NOT the bailouts that are the problem, its making sure the banks never get put in the position to be bailed out in the first place. Which is why they need new regulations. Republicans DO NOT WANT this. They want huge banks to fail and bring on a giant economic collapse. We remember what happened when we voted in Obama, he saved us going to the brink, by propping these banks up. As much as I hate to see it done, it needed to be done otherwise you and I would be reading stories about 40% unemployment and not having a job. Remember, YOU are not invulnerable from this happening. We need strong regulations so banks will never be in the position to need bailouts ever again.

    April 18, 2010 11:47 am at 11:47 am |
  7. Marge

    How can this absolute POS still continue to lie...but then when you are a republican what in Hades else can you do...you lie and you lie and you hope Fox and CNN repeat it and maybe it will stick.

    But you know what. The real Americans in this country not the KKK tea bags and the radical republicans that are hoping their messages of continual hate will cause someone to get killed, are getting wise to them. They are sick and tired of the obstructions, the hate, the call to violence by Palin and Bachman, Cantor and all the rest. The buttholes republicans don't know the real America but they are going to find out. And when they do good by KKKtea bags and radical republicans, your days as a party are slowing fading. And it can't be soon enough for us real Americans, who are tired or your racism, your stupidty, Palin's screech screech screech, Bachmann's popped eyed lunacity. We are tired of it.....the other 95% OF AMERICAN HAS SPOKEN AND ENOUGH IS ENOUGH.

    POST THIS CNN YOU DON'T DARE.

    April 18, 2010 11:47 am at 11:47 am |
  8. bennie new york

    In this situation, I would certainly hope McConell is telling the truth. The last thing that anyone wants is more of our tax dollars going to Wall Street greedmongers.

    April 18, 2010 11:49 am at 11:49 am |
  9. No more free rides

    Stop the Spending. Stop bailing out Wall Street. Stop bailing out losers that should have never bought homes they could not afford or are too greedy to take a loss and walk away from the house. I lost my job and had to relocated, I sold my house during the bubble burst, no federal money was being sent my way. Lost my investment, pull from savings to cover the mortgage gap and moved to an apartment I could afford. Now I am working hard to earn back my losses.

    I'm one of the 50% of Americans that actually pay federal income taxes and I am tired of seeing that money spent in a way that will tax me further in the future.

    The Three Stooges – Barry, Harry and Nancy, are leading us down a road of debt to foreign governments. This crazy spend spend spend agenda must be stopped.

    No more free rides for those that do not work, will not share in paying taxes and want hand outs.

    April 18, 2010 11:52 am at 11:52 am |
  10. NVa Native

    Thank God for our Secret Service, I'm sure they are following all the hate (and ignorance) on this thread – MAKON, Karl Larson,etc. Even the neophyte IT guy can find you – fake email addresses don't protect you.
    I guess it's good you are getting comfortable with your hate and vicious fear. It makes you easy to spot, follow, and prosecute. Maybe locked away for years without a trial or defense, maybe even "enhanced interogations"? What fun!

    April 18, 2010 11:52 am at 11:52 am |
  11. Libertyman13

    Dave, its cowardly statements like that which demonstrate how much conservatives truly hate freedom. They talk about small government, but they expand the police state to unprecedented levels. Tell me, what the heck is small government about torturing and indefinite detention without a trial. Once the chips are down, conservatives show their true colors, begging the government to take their liberty away. Pathetic.

    April 18, 2010 11:54 am at 11:54 am |
  12. Anonymous

    Basicly this is another preperation from the repubs to say no to the president (dems) to move America forward into 21rst century ,repubs want to keep Amreica stuck in the 20th century and keep the statusquo the same evento socialy economicaly America changed negatively .

    April 18, 2010 11:54 am at 11:54 am |
  13. PW

    First of all Mitch McConnell and his cronies are a bunch of obstructionists.

    I haven't heard about Bank of America not being part of FDIC. Where did that come from?

    April 18, 2010 11:54 am at 11:54 am |
  14. Minnesotan

    If Obama made a comment that the sun rises in the East, the Rethugs would knee-jerk counter it by saying that it's another "librul lie" and try to claim that the sun rises in the west..... regardless of how insipid they appeared.

    April 18, 2010 11:55 am at 11:55 am |
  15. Operation Crush Rush

    Candy isnt Biased.hahaha

    April 18, 2010 11:57 am at 11:57 am |
  16. NJ Pilot

    Good job, McConnell!
    Keep putting your foot in your mouth!
    It's almost as if you're working for us Democrats! 😉

    April 18, 2010 11:57 am at 11:57 am |
  17. Lorna F.

    I wouldn't believe this lying fraud McConnell or his less-than-honest toadies Cantor and Boehner if they said the shines. They simply CANNOT get over the fact Barack Obama is the President and that is a plain truth!

    April 18, 2010 11:58 am at 11:58 am |
  18. Tex

    Johnny DC is part of the GOP (Gay Old Party), the party of deny, delay, do nothing. That is what put this country were it was one year ago. This mine set based on red necks with little to no education will never agian be seen in America.

    April 18, 2010 11:58 am at 11:58 am |
  19. Alex

    So the banks can't bail themselves out now? What the..?

    The Republicans stopped making sense a long time ago.

    April 18, 2010 11:59 am at 11:59 am |
  20. Raymond R. Givonetti

    Politics for Elections (PE) – A Circle of Exploitations

    The current state of American politics places a heavy burden on candidates to accept campaign support from self serving forces if they wish to be probable contenders. The starting exploitation is two faceted; one is campaign support by special interest entities in exchange for political reciprocation and the second is campaign support by a major party in exchange for aligning and supporting party agendas. Understanding that the two major parties have evolved from ideological entities into sophisticated competing organizations designed to win elections at all levels of government, party unification or polarization is necessary to maintain/enlarge a party base and obtain money for elections. The nucleus of each of the parties is elected officials (Congress). It should be noted that parties are not mentioned in the constitution and the founding fathers warned of factions but we now have parties formally integrated into our government literally splitting it in two.
    The next exploitation in the circle is where the two major parties (Congress) exploit the public with red and blue team extreme propaganda designed to promote team competition using issues as a means as opposed to an objective. Deductive or genuine issue communication is replaced with inductive rationale that agrees with party agendas; in the form of extreme sound bites to provide maximum party separation and energize the party bases.
    To close the circle, the public unknowingly funds the above exploitations. For example, the costs for lobbyists by the insurance industry are reflected in premiums. Similarly, business campaign support is reflected in the cost of products and services they provide. In addition, the public pays to be exploited when Congress spends energy on numerous party committees, generation of party statutes and propagation of party propaganda.
    We have a convoluted paradox involving political survival factors coupled with two parties imbedded in our government, competing for political power. It is not likely that members of Congress will broach election rules that could undermine their established position in their respective party for upcoming elections. For example, recent campaign reform efforts have proven to be superficial because loopholes outpaced the legislation, resulting in continuous record levels of campaign funding. Also, after years of Congressional indoctrination and party induction reasoning, a myopic view of the current political system requires a paradigm shift away from a hard earned comfort zone.
    PE reform will require the electorate to convince Congress that their votes depend on the unleashing of elected officials from all forces (parties, special interests, etc.) to enable unbiased policy making. Specifically this requires the electorate to search for candidates that promote genuine campaign finance reform, refuse special interest campaign support and encourage parties to be restored to ideological entities not integrated into our government with party committees/leadership positions and party statutes.

    Raymond R. Givonetti

    April 18, 2010 12:01 pm at 12:01 pm |
  21. Ruty

    Why dosen't this man go home and shut up? We don't care what he says. Any thing to disagree with Obama=McConnell.

    April 18, 2010 12:04 pm at 12:04 pm |
  22. Greg, San Francisco, CA

    Unbelievable that McConnell gets caught in spewing a falsehood about the bailout fund that he continues to persist in his lie. Even more unbelievable are the posters on this board that keep repeating the lie and blaming Obama and the Democrats.

    April 18, 2010 12:04 pm at 12:04 pm |
  23. cspurgeon

    And you are a liar Sir and CNN should take you on but of course they won't. Crowley is pitiful! and so is John King . They arte totally transparent in their personal views and people like them are taking CNN down. UGH!

    April 18, 2010 12:06 pm at 12:06 pm |
  24. Michele

    Idiot. It's more like an insurance policy that the banks take out on themselves. But they'd rather hammer a lie at their base, so that it makes Obama look bad. I'm getting really sick of all Republicans. I will not vote for any of them.

    April 18, 2010 12:06 pm at 12:06 pm |
  25. Jim In Miami

    National Clown week continues – the clown, Mitch McConnell, performing for Candy this morning....

    April 18, 2010 12:07 pm at 12:07 pm |
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