Obama and Reid using politics to push bailout bill at expense of taxpayers

April 27, 2010 04:34

Obama and the Dems want to be able to select who gets bailed out and which creditors get the bailout money. Remember how GM and Chrysler creditors got stiffed while unions made out like bandits? This bill will institutionalize that type of corruption.

By Jon WardThe Daily Caller

In a sign that a bipartisan deal is much farther away from being reached than had been thought, Senate Republicans said Monday they will likely offer an alternative comprehensive bill on financial regulatory reform if they defeat Democrats’ attempts Monday to move forward on debate with the bill as it is currently written.

“We have been drafting an alternative approach since the very beginning,” said a senior aide to Sen. Richard Shelby, Alabama Republican and ranking member on the Senate Banking Committee.

The news indicates that Republicans and Democrats are much farther away from reaching a bipartisan agreement than has been indicated by lawmakers from both sides.

Shelby aides on Monday went public with their complaint that Democrats are not meeting with them, and laid out in great detail why they believe the current bill does not end the problem of “too big to fail.”

A group of 10 staffers met with about 25 Capitol Hill reporters Monday just before noon in the Banking Committee hearing room, speaking on condition that they be identified only as Shelby aides. The GOP aides said that the last time staff aides to Committee Chair Chris Dodd, Connecticut Democrat, met with them to go over details of the bill was Thursday, April 15.

Since then, one aide said, “we’re insisting on meeting … [but] all we get is crickets.” A Dodd spokeswoman did not respond when asked by e-mail if this was true.

Shelby’s staff still has significant disagreement with Dodd’s over how to ensure that big banks and other financial institutions are shut down by the government – if they are so big that their failure might impact the broader economy – in a way that does not give the wrong incentives to Wall Street.

Shelby staff said that right now the bill would compensate creditors of a failed firm more generously than in a regular bankruptcy, which would incentivize investors to pour money into the biggest firms taking the largest risks, instead of playing it safer, they said.


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