Skip to comments.More bailouts: Dodd's bill allows them
Posted on 04/27/2010 10:47:31 PM PDT by george76
Obama and Senate Banking Committee Chairman Chris Dodd have claimed repeatedly that federal bailouts of big banks will not be allowed by Dodd's financial reform bill. President Obama said that suggestions the bill would continue bailouts are "not factually accurate."
Yes, they are. The Dodd bill creates a roughly $50 billion Orderly Resolution Fund with assessments on large financial institutions. It would provide a government-financed alternative to bankruptcy. Even if the firm is dissolved, that is a bailout. The firm's debts are paid by taxpayers.
But, you say, it's not a tax-funded bailout. Hold on. The bill also allows the Federal Deposit Insurance Corporation to borrow from taxpayers "up to 90 percent of the fair value of assets" of a firm being liquidated.
Dodd's bill has taxpayers finance bank dissolutions and pay off their creditors. That's a bailout.
(Excerpt) Read more at theunionleader.com ...
The hearings were very softball today. The dems did not push very hard. Heck, the dems were nastier to generals in front of them over made up charges.
Now this would sink a bunch of ships if they exposed all the Dem criminals.
Maybe just wishful thinking....... but...
its to funnel money to obama’s buddies and redistribute...