Tonight, the House begins consideration of HR 4173, the Wall Street Reform and Consumer Protection Act. This comprehensive financial regulation reform bill will enact common-sense reforms including ending bailouts by helping ensure taxpayers are never again on the hook for Wall Street’s risky behavior and bad bets; protecting families’ retirement funds, college savings, and homes and businesses’ financial futures from unnecessary risk by Wall Street lenders and speculators and high-paid corporate executives; protecting consumers from predatory lending abuses, fine print, and industry gimmicks; and finally bringing transparency and accountability to a financial system that has run amok. [...]
Subcommittee Chairman Luis Gutierrez (D-IL) breaks down how the legislative language that Republicans are disingenuously claiming is a ‘bailout fund’ works and why he supports the Wall Street Reform and Consumer Protection Act.
The GOP claims that the House bill will create a "bailout fund" for systemically important financial institutions. Gutierrez, a member of House leadership, pointed out that the bill does not, in fact, contain such a fund. [...]
What the bill does do, he explained, is create a fund that major firms must pay into. If banks get into trouble, the fund is used to take them over, break them up and sell off the parts. If such a fund was socialist, Gutierrez said, then so is Geico. But unlike Geico, he said, drivers who crash the economy don't get their bank repaired and returned to them under the Democratic plan.
"What they won't tell you is unlike everybody in this room who has to go and take out an insurance policy to drive a car, they want Wall Street and Goldman Sachs to be able to drive our economy into the ground without paying a cent of insurance in case they act recklessly. And all we're saying as Democrats is: 'It's simple. If you wanna do business in America and you threaten the economic stability of our country, then you gotta pay into an insurance fund.' But lemme tell you. It's not the kind of insurance fund where you get into an accident and they take your car and they fix it and they kind of give it back to you new. No no. In our insurance fund, you know what happens? We chop up your car into pieces and sell it and then we pay back the fund with the pieces. That's our fund. Read the bill. It's a funeral fund. You guys love to talk about the death and death and death when it came to health care. Why don't you talk about our death panels now?"