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Republicans in Congress are arguing that the new financial regulation legislation provides for bailout. The proposed bill would "guarantee perpetual taxpayer bailouts of Wall Street banks". The main point of contention is a $50million provision, paid for by the banks, to help defray the costs of future bank failures. Republicans argue that this reduces bankers risk because there will be money in case of a crises.
http://www.npr.org/templates/story/story.php?storyId=126024295&sc=emaf
Personally, I don't believe that this is a bailout. In my opinion it is simply political semantics to stop the new regulation from being passed. However, I wonder if bankers will be willing to take greater risks since they know this safety net is in place.
What do you think? Is this new legislation promoting bailouts or is it just "political buzzwords"? And is the new regulation a good idea?
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This is clearly politically motivated rhetoric from the GOP as this "bailout talk" was released in an internal memo from a republican strategist weeks before the proposed legislation was made public. There are some real problems with this legislation and this rhetoric, in my opinion, is only getting in the way.
ReplyDeleteI agree with tcmt. There are serious problems with this legislation.
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