Bankruptcy, Not Bailouts
Washington,
April 12, 2016 -
WASHINGTON- Financial Services Committee Chairman Jeb Hensarling (R-TX) made the following statement after the House of Representatives passed H.R. 2947, a bill to create a new bankruptcy chapter for failing banks:
Instead of ending “too big to fail” and taxpayer-funded Wall Street bailouts, the Dodd-Frank Act enshrines them into law. Despite assurances by the Obama Administration and congressional Democrats at the time it was enacted that Dodd-Frank had ended “too big to fail” and protected taxpayers from funding future bail-outs of large financial institutions, there is now broad recognition across the partisan divide and on both ends of the ideological spectrum that it did no such thing.
This is not acceptable to hardworking taxpayers who are sick and tired of bailouts. Congress should work toward policy solutions that replace government command-and-control with market discipline and the Rule of Law.
This bipartisan legislation is important because it is the first step to ending “too big to fail” once and for all. The second step is eliminating Dodd-Frank’s bailout fund, which our committee will do later this week by passing H.R. 4894.
I want to thank Chairman Goodlatte and Congressman Trott for their work on this issue.
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