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. John

    Which is FUNDED BY THE BANKS – You Moron.

    April 18, 2010 12:07 pm at 12:07 pm |
  2. viking

    No wonder CNN is crashing. Look at the nitwits watching it. Read the bill before you people run your mouths off. Obama said he would change the country. Everything he`s said since then has been a lie. He sounds so good and so believable but they are just lies.

    April 18, 2010 12:07 pm at 12:07 pm |
  3. PK California

    And the GOP opposing the president is news? I wish someone would tell me one thing they have agreed to. The judge hasn't yet retired from the Supreme Court, and a list of successors has not been made, and the GOP has announced they will fight AGAINST any nominee!!! DUH!

    April 18, 2010 12:11 pm at 12:11 pm |
  4. PedPink

    "McConnell said his party wants financial regulatory reform" I sure hope so, not having regulations is what got us all in this situation in the first place and both parties are guilty of it. Anyone who knows economics sees these politicians as ignorant of how the financial structure works and stays in motion.

    April 18, 2010 12:11 pm at 12:11 pm |
  5. L cheng

    Let me see who lied last time... The president said the public can view the healthcare bill 5 days before it's voted on and it will be posted. That did not happen because if it did, the public would be outrage of what is in the bill. The president is the one who has a record of lying to the Maerican public.

    April 18, 2010 12:13 pm at 12:13 pm |
  6. RichR

    This is a ridiculous debate...

    If banks don't need to be bailed out, then why did we bail them out?

    We bailed them out to make sure that the entire economy didn't collapse.

    The difference with this bill is that IF banks need to be bailed out, then they will fund the bailout expenses.

    It's how the FDIC has always operated.

    Nobody wants bailouts, but if they do happen, we should have a bank-funded mechanism to reorgranize them so that the general public does not suffer.

    Now that Obama has called their bluff by removing this component, lets see if the republicans are now good with this bill or they manufacture another reason to be against it...

    Either become a part of the solution or get out of the way....

    This is so dumb....

    April 18, 2010 12:14 pm at 12:14 pm |
  7. mfhpr

    B of A is and has to be FDIC insured. Go to their website and see at the bottom of the page that they are. Don't be misled by the statement that investment and insurance products are NOT FDIC insured...

    April 18, 2010 12:15 pm at 12:15 pm |
  8. Look at the facts, not the rhetoric.

    He admits it! First he said that he didn't talk with the bankers about blocking the bill, and in the same sentence, he says that he MET with Kentucky bankers who are AGAINST the bill.



    He's giving a bad name to my hometown of Louisville. so ashamed.

    April 18, 2010 12:15 pm at 12:15 pm |
  9. Dave

    Libertyman13, the main problem here is us... we let these liars off the hook and re-elect them. How anyone in the middle class or poor votes Republican is beyond me with their record. The put corporations ahead of working people every time.

    The GOP is the party of extremists. They should be treated as such.

    April 18, 2010 12:15 pm at 12:15 pm |
  10. GObama

    MAKOM writes:
    April 18th, 2010 11:17 am ET

    "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."

    Please, MAKOM, please help me get some of what you're obviously ingesting. Would love to get delusional for a bit! Maybe it would help me see things the Repug way.

    April 18, 2010 12:16 pm at 12:16 pm |
  11. Thomas H.

    Given that the lion's share of Wall Street bailouts were initiated by the Bush administration, I find it astonishing that the few remaining Republicans still working in Washington would object to them so vocally.

    April 18, 2010 12:17 pm at 12:17 pm |
  12. X

    Mitch McConnell is laughable. It is clear that the country club republicans are going to bat for the very people and business practices that destroyed the US economy.

    April 18, 2010 12:18 pm at 12:18 pm |
  13. Sorensen

    "Girley-man" McConnell , as usual, makes a complete fool out of himself. No facts, amateurish lying and total embarrassement for
    his already miserable party.
    Don't stop!

    April 18, 2010 12:18 pm at 12:18 pm |
  14. Yep

    It's pretty simple, let's choose to not play into the hands of the people who ruined the economy in the 2000s.

    April 18, 2010 12:20 pm at 12:20 pm |
  15. josephine

    When the Repubs call Bachmann, Palin and that guy who yelled "you lie" at Obama their heroes, its time to really worry. When all the news they listen to is from Limbaugh , Beck and the rest of Fox agitators, you know that it is a hopeless situation. Lets get this country back on track, vote no to the party of NO.

    April 18, 2010 12:22 pm at 12:22 pm |
  16. Tori in Texas

    BREAKING NEWS!!! FoxLite talking head Candy Crowley actually challenges a Republican assertion with a FACT!!

    Coming up next, Ice Skating in Hell with special guest, ENRON's own, Ken Lay!

    April 18, 2010 12:22 pm at 12:22 pm |
  17. mfhpr

    HEY VIKING: How do you propose he change the country when the REPs HATE change? Every single president faces these challenges from the other side of the aisle. And those of us that educate ourselves on how politics actually works know this before any candidate is voted in. ALL promises and proposed changes will be faced with the opposing party's efforts to block them...period. And if you're not seeing the absolute clearest evidence of that right now, you're simply believing what you WANT to believe...

    April 18, 2010 12:22 pm at 12:22 pm |
  18. Chloe in Chatsworth, CA

    Last week Mitch McConnell and John Cornyn, head of the National Republican Senatorial Committee, a major Republican fundraiser, met with 25 Wall Street big shots for a little old fashioned quid pro quo. Not surprisingly, the bankers were primarily concerned with keeping the capitol markets comfortably unencumbered by pesky government oversight, and the Republicans with regaining control of the Senate and House. Reportedly a good time was enjoyed by all.

    Google: "Street Execs Give Pols Earful on Financial Reform". It's on Fox, so it must be fair and balanced.

    April 18, 2010 12:23 pm at 12:23 pm |
  19. Arthur

    Hey folks you're gonna find in every blog comments that doesn't make sense from people attacking President Obama for every change he makes, BE AWARE they are paid to do so, they throw a bunch of lies everywhere to confuse people, there's hundreds of people doing so right now. Like it or not Republicans ruled the country during 8 years and they left disastrous consequences, President Obama has 1 1/2 years in office and every legislation He propose is gonna be block by Republicans. So lets use common sense and dont' be fooled.

    April 18, 2010 12:24 pm at 12:24 pm |
  20. news we can use.... NOT!!!

    @MAKOM April 18th, 2010 11:17 am ET
    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*****So a Man Think It So Is HE.....You Betcha!!!****

    April 18, 2010 12:24 pm at 12:24 pm |
  21. bvilleyellowdog

    Keep digging deeper you banksta shill.

    April 18, 2010 12:25 pm at 12:25 pm |
  22. Fred

    Lets see...Mitch McConnell and the other Repub leadership spent several hours meeting with the Banking industry last week before they came out against the Administrations plan on correcting the banking problems...

    One could say, that they got their marching orders and are now going to do what they always have done....PUT THE BANKING INDUSTRY AHEAD OF THE AMERICAN PUBLIC...

    Their next slogan will be..IF IT IS GOOD FOR THE BANKS IT IS PERFECT FOR AMERICA...

    But this is nothing new..the Repubs have always been in the pockets of the banks and their Wall St. partners..

    April 18, 2010 12:25 pm at 12:25 pm |
  23. Annie, Atlanta

    Raymond R. Givonetti, excellent post. Just 1 thing, how do we make our voices heard over the $$$? Convince Congress how?

    I e-mailed and called my representative and senators last fall on HCR, and heard back from 1 through e-mail that he would never consider HCR because he had to protect the profits of insurance companies. How do we fight that? How can we? Pool our resources and buy them like big industry does?

    April 18, 2010 12:26 pm at 12:26 pm |
  24. Larry

    Lies, Lies and more lies

    McConnell deserves to be put out of his misery

    The GOP absolutely DISGUSTS me

    There should be a mechanism for the American people to remove easily from the Senate or Congress, people like McConnell, these worthless politicians do not deserve the time of day !!!!!!!!!

    April 18, 2010 12:26 pm at 12:26 pm |
  25. John Starnes Tampa Florida

    Once again the Republican Party relies on fear vs. facts. WMDs and Iraq come to mind, for one.

    April 18, 2010 12:26 pm at 12:26 pm |
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