Washington, Apr 20 -
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President Obama likes to say we need to clean up Wall Street. But let’s be clear: He is pushing a job-killing bailout bill for Wall Street that benefits his top financial contributor from the 2008 campaign – a firm that just happens to be under investigation by the SEC for defrauding investors.
Despite the President’s rhetoric, his support for the Democrats’ bailout bills gives big Wall Street banks a permanent, taxpayer-funded safety net by designating them “too big to fail.” Just whose side is President Obama on? Here are the facts:
WALL STREET GIVES GENEROUSLY TO THEN-CANDIDATE OBAMA:
• Goldman Sachs, recently charged with defrauding investors, was President Obama’s top Wall Street contributor during the 2008 election cycle, donating nearly $1 million to his campaign.
• Securities & investment firms in general were the fifth largest contributor to President Obama’s 2008 campaign, donating nearly $15 million.
• Big banks also donated more than $3 million to Obama during the 2008 election cycle.
PRESIDENT OBAMA’S RHETORIC SAYS “GET TOUGH ON WALL STREET”:
“We will hold Wall Street accountable. We will protect and empower consumers in our financial system. That’s what reform is all about. That’s what we’re fighting for.” (Weekly Address, 4/17/10)
PRESIDENT OBAMA’S ACTIONS PUSH PERMANENT BAILOUTS FOR HIS WALL STREET FRIENDS:
• The Dodd Gives Wall Street a Pre-Existing $50 Billion Bailout Slush Fund. Sen. Dodd’s financial bailout bill would create a $50 billion ‘orderly resolution fund’ ($150 billion in Rep. Barney Frank’s bill) that could be repeatedly replenished from industry assessment.
• The Dodd Bill Gives Wall Street a Treasury-Backed Credit Line. The FDIC would be authorized to borrow from Treasury up to the amount of cash left in the ‘resolution fund’ plus 90 percent of the value of the assets of any and all too-big-to-fail firms in its control.
• The Dodd Bill Provides a Government-Guaranteed to Wall Street Debt. The FDIC would be authorized to guarantee the debt of any solvent bank, bank holding company, or affiliate in any amount subject only to an aggregate debt limit set by the Treasury Department.
• The Dodd Bill Institutionalizes Unlimited Wall Street Bailouts. The FDIC, as the resolution agency for too-big-to-fail firms, would be given wide latitude to use resources to make payments to anyone in any amounts, at their own discretion.
• The Dodd Bill Gives Wall Street Bridge Bank Authority. The FDIC would be authorized to create a bridge institution as part of resolving a covered institution and vest the FDIC with broad authority to use the orderly resolution fund in connection with the bridge institution.
While President Obama and congressional Democrats push job-killing legislation that gives permanent bailouts to their top campaign contributors, Republicans are fighting to end the bailouts and create jobs for families and small businesses. Republicans believe the best way to protect taxpayers is by reforming Fannie Mae and Freddie Mac, the government-sponsored companies that sparked the meltdown by giving high-risk loans to people who couldn’t afford it.