[Congressional Record Volume 156, Number 57 (Wednesday, April 21, 2010)]
[House]
[Page H2701]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STOP THE ENDLESS BAILOUTS
(Mr. PITTS asked and was given permission to address the House for 1
minute and to revise and extend his remarks.)
Mr. PITTS. Mr. Speaker, beginning in the fall of 2008, Congress
approved, and the Bush and Obama administrations began to hand out
taxpayer money freely to banks and, eventually, auto companies, with
little transparency and, in some cases, little hope that the money
would be repaid.
Now, the Senate is set to consider legislation that will create a
permanent culture of bailouts on Wall Street. The legislation moves us
away from sending failed companies into bankruptcy and toward
government-managed bailouts. There would be a different set of rules
for the largest firms, rules that create a perverse incentive for these
companies to take risks, rules that encourage lower rates for the
largest firms because of the implicit government guarantee. Ultimately,
we would be creating a dozen new Fannies and Freddies, not reforming a
broken system of government oversight.
I think the American people have had enough of bailouts. The Dodd
bill creates an endless cycle of failure where Wall Street bankers are
the only ones who come out ahead. It should be stopped.
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