(CNN) - Texas Sen. Kay Bailey Hutchison says Republicans will stand firm against any financial reform bill that allows for future government bailouts of failing banks.
“Republicans are working to ensure the bill would forbid any future bailouts of Wall Street banks,” said Hutchison in the Republican weekly radio and internet address airing Saturday. “The idea that a financial institution is ‘Too Big To Fail’ perverts free market capitalism. It suggests that large firms can privatize their profits, yet socialize their risks.”
“To be clear, we will stand firm against a partisan bill that exposes ordinary taxpayers to future bailouts or favors big companies over community banks across America,” she added.
Hutchison unsuccessfully sought the Republican Texas gubernatorial nomination, losing to Gov. Rick Perry last month. Amid urging from national and Texas Republicans, Hutchison decided to serve out the final two years of her Senate term, even though she pledged during the gubernatorial primary that she would retire this year.
Read the full remarks of the address after the jump
“I’m Kay Bailey Hutchison, United States Senator from Texas.
“For more than a year, Democrats and Republicans on Capitol Hill have been working to craft legislation that would prevent another catastrophic financial crisis like we saw in the fall of 2008.
“Republicans are working to ensure the bill would forbid any future bailouts of Wall Street banks. The idea that a financial institution is ‘Too Big To Fail’ perverts free market capitalism. It suggests that large firms can privatize their profits, yet socialize their risks. Or, put simply, these companies take their profits in good times – but when things go bad – they turn to the government to bail them out. This must end. The American people should not be forced to pay the risky gambling debts of the large financial institutions.
“The Democrats pushed a bill through the Senate Banking Committee that does not stop future bailouts. Republicans have been attacked for speaking out against it and asking for bipartisan negotiations before allowing the bill to be debated on the Senate floor. But, to be clear, we will stand firm against a partisan bill that exposes ordinary taxpayers to future bailouts or favors big companies over community banks across America. The tactics the Democratic leadership used to pass the health care bill must not be repeated.
“Thankfully, negotiations in the Senate continue. It's time for the name-calling to stop. Getting our economy back on track is too important to allow political games to sidetrack these efforts. Both parties agree that any financial regulation should do one essential thing: no company should be considered ‘too big to fail’. And never again should taxpayers be expected to bail out those who made risky financial bets with other peoples’ money.
“Unfortunately, the White House is attacking Republican leaders to score political points. Americans are troubled by the way Democrats forced their health care bill on the public that overwhelmingly opposed it. The Democrats are trying to do it again. But, they underestimate Americans’ understanding.
“The fact is, a growing number of experts on both sides of the ideological spectrum are coming to see what Republicans have been saying all along: the Financial Regulation Bill contains serious flaws. We believe this bill can be fixed, with a sincere bipartisan solution. And, as the President said in his visit to Wall Street on Thursday, we are still working on a bipartisan bill ‘drawing on the ideas of Democrats and Republicans.’ That’s a far cry from last week’s comments.
“It’s time for Democrats to put away the political playbook and simply say publicly what they’re suggesting privately: that this bill still needs some work, that both parties should come together to do that work on behalf of the American people. We can prevent future bailouts. We can address the root causes of the economic downturn. But, first, we need to put politics aside.
“Thank you for your time.”
Whenever the President and the Dems say we need to pass this now or the sky will fall, it is time to stop and take a serious look at whats in the bill.
Nancy Pelosi said about the Health Care Bill " We need to pass it so we will find out what is in the bill" The more we see whats in it and that it doesn't do what tyhey said it would tyhe less we should trust anything the Dems say about this Bill. Take it slowly, do it right.
Wow, I love it! The republicans, "Party of Nothing" want to leave in place the no regulation of the finanace industry that bush put in place and created the finanacial meltdown? Since 80% of Americans feel there needs to be fianancial reform there goes 2010 as a "Oops we will have to write it off as another loss!" Gosh, I sure hope so Kate!
Senator Hutchinson is just reminding Americans how little the GOP understands the complexities of the international financial system. This ignorance is what got us into trouble and nearly caused a worldwide collapse under GW Bush.
Now, for purely political reasons, the GOP is trying to sabotage anything that might put the country back on track and allow regulations that would be cognizant of the new realities of the world economy.
Kay, it was your man Bush who proposed the bailout. The Republicans in Congress gave him the votes he needed, and now it turns out that the bailout not only worked, it made money for the taxpayers.
Unregulated free maket capitalism is the root cause of the global and domestic economic crisises. Americans, especially politicians, should comprehend this conundrum. Perfect examples which exemplify the need for re-regulation are Enron, Goldman Sachs, et. al.; let alone all the industries recieving government bailout assistance.
So Hutchinson is a liar, too. I thought this kind of rhetoric was beneath her, but it seems that no Republican is immune to the current ideological virus.