April 24th, 2010
09:29 AM ET
12 years ago

Hutchison says GOP standing firm on financial reform bill

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/images/08/17/art.kay0817.gi.jpg caption="Sen. Kay Bailey Hutchison, R-Texas, delivered the Republican weekly radio and internet address Saturday"](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.”

Filed under: Kay Bailey Hutchison
soundoff (30 Responses)

    If your going to have reform start with the White House. Do something with the moron who is hitting the taxpayers for over 4 millions dollars just for her personal aides to take care of her needs. Granted that she needs someone to try and cover up that face and huge hips but 22 people. The worst part is she does not even have a job with Uncle Sam. She is just a drain on the economy. How many men/women would 4 million dollars give jobs to. Only about 60.

    April 24, 2010 09:33 am at 9:33 am |
  2. larry

    when is cnn going to start doing some fact checking on these politicians? this bill is not partisan....she is being dishonest. CNN you need to step up your game.

    April 24, 2010 09:36 am at 9:36 am |
  3. Len Smith

    Let me understand, no bailouts to help keep our economy from failing. OK, I can accept that in the future, as long as there is regulation of banks.
    It seems to me most of the money has been paid back with interest, so where has the taxpayer been hurt. Some companies are still struggling and owe us a payback. I worked in banking all my life and always with strong regulation, didn't make a lot, but the people at the top did and no one complained. So what is the issue? More greed? and more greed? Please remember the downhill slop started with Reagan and continued right through Bush II, except for the large surplus of the Clinton years. We do need a strong financial reform bill NOW.

    April 24, 2010 09:40 am at 9:40 am |
  4. Minnesotan

    Once again, the Republicans are lying. The bill, as proposed, uses money from BANKS for this surplus fund, NOT taxpayers. Why do they have to lie, misconstrue and fabricate garbage on EVERY issue? What is their problem with having an HONEST discussion?

    April 24, 2010 09:41 am at 9:41 am |
  5. Susan

    And, this from the woman who received Cheney's endorsement!

    My suggestion is that Ms. Hutchinson read the bill.

    April 24, 2010 09:48 am at 9:48 am |
  6. andy

    hey cnn – this is the part where you explain that the bill does in fact prevent future taxpayer-funded bailouts. or would that require some actual journalism to take place?

    April 24, 2010 09:49 am at 9:49 am |
  7. art in kingwood

    I would like to thank CNN for doing the nutrition story this morning on the cable. Helping the Obama's couch their takeover of my child's nutrition in terms of national defense was sterling. I will be looking for more stories from you about how I can accept the PROGRESSIVE thoughts and perfect actions of the Obamas.

    April 24, 2010 09:49 am at 9:49 am |
  8. GI Joe

    If memory serves, you idiots from TX are the ones that gave us King W that LED US TO THE BRINK. You all socialized losses and privatized gains for your buddies.

    Spin spin spin spin spin spin.

    April 24, 2010 09:50 am at 9:50 am |
  9. David

    That's ridiculous political posturing. If there's a big fire downtown, you have to put it out, even if it belongs to the banker. Big fires spread. You can't tell the fireman, just put out the fire if it's my house.

    April 24, 2010 09:51 am at 9:51 am |
  10. Bertina

    Well good, that means they will support the bill since that's not in it. Unless they are lying to the American people.

    April 24, 2010 09:52 am at 9:52 am |
  11. Clint in Houston

    Kay Bailey Hutchinson is a liar and we Texans know it. Term Limit Ms. Hutchinson??....stepping down in Mar. Ms Hutchinson??...liar.

    April 24, 2010 09:57 am at 9:57 am |
  12. Aaron

    Wonder if any of these thick skulls took the time to read the proposal before hitting the propaganda machine. The fund is paid for with bank contributions and is there to eliminate institutions. How do you bail out a bank that no longer exists!

    April 24, 2010 10:00 am at 10:00 am |
  13. David

    As usual the Republican's aren't serious about enacting meaningful legislation – this is just more of the "Party of NO" at work. Nobody wants to bail out a company – bank or otherwise – that's "too big to fail" but face it, if the same crisis that happened last year is repeated again in 2 years or 20 years, bail-outs will happen in order to help keep our economy more stable. They can say that won't happen again...but they're kidding themselves and anyone else that believes their baloney.

    April 24, 2010 10:02 am at 10:02 am |
  14. Terry from West Texas

    Well, if Kay Hutchison says it, you can take it to the bank. Like when she promised to resign from the Senate so she could run for governor of Texas a few months ago ...

    April 24, 2010 10:07 am at 10:07 am |
  15. GOP stole from me

    The GOP doesn't want reform they have been profiting in corruption for a long time. You don't have to say Silverado, Ken Lay, or Neal Bush to see that this is the same old bad loans used to rob the banks method the GOP has used over and over. People should smarten up and never vote GOP unless they like having their savings and retirement raided by their friends.

    April 24, 2010 10:10 am at 10:10 am |
  16. Moosehead

    Isn't that exactly what Obama said?... what's the big deal Mrs. Hutchinson?

    April 24, 2010 10:13 am at 10:13 am |
  17. Bud

    Go Senator Hutchison...stay strong and save our Capitalism

    April 24, 2010 10:17 am at 10:17 am |
  18. katiec

    The republicans quest to continue on with politics as usual, their actions which almost destroyed our country, spewing lies, distorions, fear mongering due to no acceptable, responsible ideas of their own
    against anything that is presented has made them a disgrace as a political party. Their undying support for big business over the survival of our country, goals to destroy our president, consequently our country has put them well on the path to becoming our country's most dangerous domestic terrorists.

    April 24, 2010 10:17 am at 10:17 am |
  19. Ed, Santa Fe, NM

    Yes we already had one bailout under BUSH, but we wouldn't want anyone to remember that.....

    April 24, 2010 10:19 am at 10:19 am |
  20. phoenix86

    Another push by the democrats for a bill to prevent an abuse that the democrats caused, through misguided regulation on a financial instrument that they don't understand.

    Pretty much how they wrecked the healthcare system a few months back.

    Only 7 more months.

    April 24, 2010 10:22 am at 10:22 am |
  21. D. Bunker

    Actually, Kate, it's time for the GOP lying to stop. This is most certainly not a "bailout" bill; it's an attempt to provide the necessary protects that were gutted after the repeal of Glass-Steagall. You and your corrupt party need to stop bowing to your corporate masters and start representing average Americans.

    April 24, 2010 10:24 am at 10:24 am |
  22. Anonymous

    Great! It sounds as though Republican will all be voting for the bill then!
    The 50 billion dollar "bailout" fund in the bill is actually a reserve paid for by the banks! Surely even the Republicnas can see that a "rainy day fund" is not a bailout if its your own money being used!
    As for too big to fial- look at Congress- nothing is too big to fail.

    April 24, 2010 10:31 am at 10:31 am |
  23. The Other Campaign Strategist @115th and Amsterdam Ave

    Don't you love it how Republicans try to STEAL the Democrats words ... and therefore their ideas ??? Seems to me I've heard 1 particular person speak out against ....

    “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.”

    ... and that person is President Barack Obama, not Senator Hutchinson.

    If Republicans truly are worried about future bailouts they need to think deeply about this ... an probably more intelligently than they've ever demonstrated that they are able to pull off.

    GOP'ers better be in favor favor of a "Ma-Bell-Style" breakup of financial instutions so that no one holds more than 5% of all deposits, assetts, or loans. Their can be no syndicate of banks in the background to try to circumvent this basic safeguard.

    The Government broke up Standard Oil at the turn of the century and then AT&T in the 1980s to protect the interests of John & Jane Q. Public.

    Now it is Wall Street's turn.

    April 24, 2010 10:33 am at 10:33 am |
  24. pat c.

    why does the GOP put unworthy talking points to a mute issue here? our president has already said the bill will prevent that from happening again. the republicans make me sick wanting america to think they are the strong force on every issue but they have never put out their own bill to show improvement. they are truely obstructionist on every thing this ELECTED president is trying to do to either correct bush's mistakes or lead our nation forward to a new growth for america era.

    April 24, 2010 10:35 am at 10:35 am |
  25. pat c.

    why does the gop put spin on everything this president has already said? president obama has already told the american people this bill stops future bailouts. what is it that the repubs can not understand here? they need to help, lead or get out of the way. president obama was ELECTED to be our leader NOT the republicans that would love to keep us going backwards and ignore the state of disaster that bush left for the democrats to clean up.the gob is a lost cause an will never be the power sourse again for america.

    April 24, 2010 10:39 am at 10:39 am |
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