Republicans Give Up the Game
At the end of last week, the Obama administration reportedly told Senate Democrats to drop the $50 billion liquidation fund -- often referred to as a bailout
Jul 31, 2020245.8K Shares3.5M Views
At the end of last week, the Obama administration reportedly toldSenate Democrats to drop the $50 billion liquidation fund — often referred to as a “bailout fund” — from the financial regulation bill as a concession to Republicans. Senate Democrats broached the deal with Republican leadership. They refused.
Still, yesterday, Senate Minority Leader Mitch McConnell (Ky.) made the “bailout fund” the centerpieceof his argument against financial regulation reform on CNN’s State of the Union with Candy Crowley.
Of course, the “bailout fund” is no “bailout fund.” The idea is that banks would fund a $50 billion pool; were any to get into trouble, regulators would fire every member of management, wipe out shareholders, split the company up and sell the pieces, and tap the $50 billion fund to pay for the process and ensure the orderly dissolution of the firm. Companies like Citigroup were given bailouts during the crisis. This would be an execution (or, as Sen. Mark Warner (D-Va.) likes to say, a “death panel“).
Still, McConnell has made the fund a central talking point. The political calculation is clear: At least for now, Republicans believe that they are better off arguing the bill is not good enough rather than voting for reform, no matter how cynical and hypocritical it might seem.
Paolo Reyna
Reviewer
Paolo Reyna is a writer and storyteller with a wide range of interests. He graduated from New York University with a Bachelor of Arts in Journalism and Media Studies.
Paolo enjoys writing about celebrity culture, gaming, visual arts, and events. He has a keen eye for trends in popular culture and an enthusiasm for exploring new ideas. Paolo's writing aims to inform and entertain while providing fresh perspectives on the topics that interest him most.
In his free time, he loves to travel, watch films, read books, and socialize with friends.
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