April 18th, 2010
02:29 PM ET
11 years ago

McConnell: There's a bailout fund in current Wall St. reform bill


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. Independent One

    McConnell has been caught in a lie...future bailouts come from the banks not the government.....Fool me once shame on you, fool me twice shame on me!

    April 18, 2010 09:54 am at 9:54 am |
  2. guy from NM

    He seems to be backtracking from his previous foot in the mouth. Let the banks control themselves, see where it got us. The Republicans will be shown for what they are really, stooges for the banks, not that the Dems are much better

    April 18, 2010 09:58 am at 9:58 am |
  3. John K

    Goldman-Sachs prefers taxpayers pick up the tab for their mistakes and corrupt activities and McConnell and forty other Republican senators agree.

    April 18, 2010 10:00 am at 10:00 am |
  4. will

    CNN sucks. Anyone can come on with Candy and talk like they are on fox news or msnbc. We are all screwed, period.

    April 18, 2010 10:03 am at 10:03 am |
  5. katiec

    The republicans saying they want financial reform is as believeable as their trying to tell the voters they are for middle class America.
    Their undying support for big business has been obvious these last eight years, having created numerous diasters for our country and us.
    They have and continue to sacrifice our survival for their personal gains, goals, power, greed and win at any cost.
    They are well on their way to becoming our country's most dangerous domestic terrorists.

    April 18, 2010 10:03 am at 10:03 am |
  6. ib

    We will see who is going to be caught in a lie. I don't think it will be McConnell when all is said and done.

    April 18, 2010 10:04 am at 10:04 am |
  7. Independent Too

    It seems that this president is getting caught time and time again rolling in the mud criticizing hard working people rather than taking the high road a president should. (Anyone remember the Cambridge police fiasco? The State of the Union critique of the Supreme Court? etc.) Let's bring some dignity back to the role of the president.

    April 18, 2010 10:05 am at 10:05 am |
  8. GI Joe

    Doesn't matter who points out how wrong the GOP folks are -

    The GOP lies and yells NO - that's all they do.

    They are not intellectual enough to have a reasonable conversation.

    My Gawd - the stupidity of the voters in KY is overwhelming.


    April 18, 2010 10:05 am at 10:05 am |
  9. Joe

    The GOP has nothing to offer but more of the same - let the market do it. That strategy is what has created our current problems.

    I worked in banking for over 20 years with companies like Bank of America and HSBC and the current regulatory envronment, given product complexity, is insufficient to protect consumers and the economy. Regualtion is needed now.

    April 18, 2010 10:05 am at 10:05 am |
  10. Jill-IN

    The money that would go into a bank insolvency fund would be provided by the healthy banks themselves. This is necessary and important to maintain the public trust. Trust is key here in banking and insurance. The insurance company insolvency regulations provide very similar requirements with healthy insurers backing up the reserves for the policyholders so they receive the benefits they paid for. McConnel is wrong – flat out wrong. It's good that Candy pointed out the obvious mistatement he made but she should have pushed harder when he came back with his gobbeldy gook.

    April 18, 2010 10:05 am at 10:05 am |
  11. John Irvine

    McConnel states that if his constituant banks find something in the proposed bill that they don't like, then he can't support that part of the bill. Think about this, if it's truly a regulatory reform bill, I'm sure the majority of banks are going to find many things they don't like about it. If there isn't anything in the bill they don't have a problem with, then it's status-quo, and why bother with the bill in the first place.

    April 18, 2010 10:07 am at 10:07 am |
  12. jimmm

    So based on McConnell's definition. the FDIC should be dissolved, since that is paid for by the banks.

    April 18, 2010 10:08 am at 10:08 am |
  13. Angie in PA

    THAT IS A LIE! Adownright LIE! There is a Insurance fund that the banks pay into if they fail they bail themselves out why wont the Media call the Republicans out on their LIES LIES! And now they are worried about bailouts when it was them and Bush and Paulson who begged and begged congress for the first bailout! pluuuuuuuuuuze all they are trying to do is kill reform to protect their cashflow from Wall St!

    April 18, 2010 10:10 am at 10:10 am |
  14. Karl Larson

    just one little nuke, well placed on Washington, would clear this little problem right up

    April 18, 2010 10:10 am at 10:10 am |
  15. Party of Palin

    Thank you Candy Crowley for catching him on his lie and deceit!

    April 18, 2010 10:11 am at 10:11 am |
  16. awasis

    If it comes from the banks so what? This is a smoke screen so the Repubs can object to the bill. It should be pretty obvious to everyone that the Repbus are in Wall St's pocket. Knowing that the Repubs are for more deregulation and less oversight and minimal protections for the average person, it is amazing to me how some of these "average people" still vote for these corporate lap dogs.

    April 18, 2010 10:11 am at 10:11 am |
  17. Jim

    Obama has been caught in a lie....the bill creates a future bailout fund....Fool me once shame on you, fool me twice shame on me! Regardless of where the money is *supposed* to come from, it will be paid for by the taxpayers SOMEHOW.

    Goldman-Sachs gave more money to Democrats than Republicans, John. Wake up. How do you think Obama got elected? Democrats won't pass any reform bill that hurts the banks.

    April 18, 2010 10:12 am at 10:12 am |
  18. SethC

    Just I thought everyone is attacking those who want to stop the government from running our lives. And they call themselves liberals, and democrats. They are the liars.

    April 18, 2010 10:12 am at 10:12 am |
  19. sandy

    He just continues to open his mouth and insert foot. Maybe someday the Republicans will start working with this President to help this country dig itself out of the hole they put us in. Miracles can happen you know. Remote, but maybe!!! If anybody should be voted out of office,it's McConnell. We don't need liars in Washington and he has proven himself to be just that.

    April 18, 2010 10:14 am at 10:14 am |
  20. Anonymous

    McConnell is bought and paid for by big business...along with MOST other Republicans...Look at their voting history...Here is one SMALL example:10 (TEN) out of 11 (ELEVEN!) biggest recipients of Exxon Mobil political bribes go to REPUBLICANS!!! Can you believe that?? It tells you something...just like the Republicans told us the merger would "benefit the consumer". LOL...It sure did. Less competition ALWAYS benefits the consumer!!!

    April 18, 2010 10:14 am at 10:14 am |
  21. Jeff from H-town

    Another screen by the Republicans. If future bailout will come from the banks and not the government, then that should be the direction as that helps secure thousands from being out of work at the least. Does that not help the general population. The Republicans truly do not have th interest of the bottom to middle class at heart, as these are the worse hit groups when these incidents occur.

    April 18, 2010 10:14 am at 10:14 am |
  22. Me

    Impose a penalty on a business, that business imposes the penalty on it's customers with higher fees. Impose a tax on a company, that company imposes that tax on it's customers with higher fees. All taxes, all penalties, all bailouts are paid by consumers. Some people don't get it and never will.

    April 18, 2010 10:15 am at 10:15 am |
  23. John

    Of course the Republicans are lying again. Anything they can do to try and disrupt the President and Congress is more important than legislating responsibly. They only want to make political points to win votes, they have no desire to actually GOVERN. They proved that over and over for the past 20 years with their last two Presidents being among the worst in history and their constant disruption of both Clinton and Obama, two guys could actually govern responsibly if not for constantly having to withstand Republican fillibusters and smear tactics.

    Mitch McConnell is a LIAR and he has been exposed. NO TAXPAYER BAILOUT in this plan! PERIOD. His real agenda is to disrupt Obama, prevent him from succeeding at any cost, even their own honor and dignity.

    April 18, 2010 10:16 am at 10:16 am |
  24. The Veteran

    Here's the deal: Come November, we need to send a strong message to the GOP (Gang of Pharisees). They are some of the most dishonest, hypocritical folks in America right now.

    Any Christian who is a member of the Pharisee party is blind. There is no Christ in none of that mess.

    April 18, 2010 10:19 am at 10:19 am |
  25. Charlie in Maine

    You lie sir!

    April 18, 2010 10:20 am at 10:20 am |
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