FINANCIAL SERVICES DEM: “THE DODD BILL HAS UNLIMITED EXECUTIVE BAILOUT AUTHORITY.”
April 20, 2010 | House Republican Leader John Boehner (R-OH) | Permalink
There are conflicting reports as to whether Washington Democrats will remove a $50 billion bailout slush fund from their Wall Street bailout bill, but it’s a moot point. With or without the fund, Senate Banking Chairman Chris Dodd’s (D-CT) 1,408-page regulatory reform bill would empower the federal government to provide Wall Street with permanent bailouts, courtesy of American taxpayers.
Under the Dodd bill, the nation’s largest financial firms – including Goldman Sachs, President Obama’s top Wall Street ally – would be eligible for special treatment at the highest levels of government, including resolution authorities and resources unavailable to smaller financial firms. This includes exclusive access to a pre-existing bailout fund, a Treasury-backed line of credit, the ability to have debt guaranteed by the government, and much more.
To put it in perspective, the bailout resources this bill provides far surpass those that were available to bail out Fannie Mae and Freddie Mac, the government mortgage companies that sparked the meltdown by giving high-risk loans to people who couldn’t afford it. As Rep. Brad Sherman (D-CA), a member of the House Financial Services Committee, told Politico yesterday, “The Dodd bill has unlimited executive bailout authority. … The bill contains permanent, unlimited bailout authority.” Read the rest of this entry »