Obama Reform Plan Will Have Taxpayers Paying for Bank Failures

Money News

A Senate measure advertised as protecting taxpayers from another Wall Street bailout would still leave them fronting the money if the government moves to liquidate a big failing company like insurance giant AIG.

Taxpayers could end up putting up billions of dollars to cover the costs of dealing with such a firm and be able to recoup that money only over a period of five years, under the Senate’s sweeping overhaul of financial regulations.

An amendment the Senate is expected to pass Tuesday states that "taxpayers shall bear no losses from the exercise of any authority under this title."

Sen. Richard Durbin, D-Ill., says the legislation means: "We’re never going to let the taxpayers and Treasury face this kind of obligation."

But the measure doesn’t prevent that kind of obligation, though it does require that taxpayers would be paid back.

"The bill ensures taxpayers don’t get stuck paying for Wall Street’s mistakes," said Kirstin Brost, a Democratic spokeswoman for the Senate Banking Committee. The government would have top priority getting repaid, with proceeds of the sale of a liquidated firms’ assets going to the government first.

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Comments

  1. Financial reform is such a scam if it doesn't address Fannie Mae and Freddie Mac. They want us to believe that Wall Street is the only criminal in this situation and that big banks are the enemy. The US Citizens are lied to and duped over and over and over. Raines has never been brought to justice and pocketed 90 million dollars from Fannie Mae. All the associates from Goldman Sachs in the White House who may have been part of the financial problems in the first place are supposedly helping to mold the legistlation to fix it ?? Oh come on. Do they really think we are that stupid ?? BO talks out of both sides of his mouth every time he opens it. Enough is enough. It's time for impeachment so he cannot stand in the way of economic recovery after the November elections. Let's get the borders closed, the illegals out, and secure our freedom and liberty.

  2. atom ant says:

    "What we are witnessing is the Communist tactic of pressure from above and pressure from below, described by Communist historian Jan Kozak as the device used by the Reds to capture control of Czecho-Slovakia. The pressure from above comes from secret, ostensibly respectable Comrades in the government and Establishment, forming, with the radicalized mobs in the streets below, a giant pincer around middle-class society. The street rioters are pawns, shills, puppets, and dupes for an oligarchy of elitist conspirators working above to turn America's limited government into an unlimited government with total control over our lives and property."
    ~ None Dare Call it Conspiracy — by Gary Allen and Larry Abraham, 1971, The plan of the international bankers to create a world socialist super-state

  3. atom ant says:

    "What we are witnessing is the Communist tactic of pressure from above and pressure from below, described by Communist historian Jan Kozak as the device used by the Reds to capture control of Czecho-Slovakia. The pressure from above comes from secret, ostensibly respectable Comrades in the government and Establishment, forming, with the radicalized mobs in the streets below, a giant pincer around middle-class society. The street rioters are pawns, shills, puppets, and dupes for an oligarchy of elitist conspirators working above to turn America's limited government into an unlimited government with total control over our lives and property."
    ~ None Dare Call it Conspiracy — by Gary Allen and Larry Abraham, 1971, The plan of the international bankers to create a world socialist super-state

  4. thomas says:

    remember he flunked finance 101 in whatever school he went to!!

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