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Bachus to the White House On Financial Reg Reform: Whose Side Are You On?

WASHINGTON, May 5, 2010 -

- Financial Services Committee Ranking Member Spencer Bachus today said that a White House report entitled "Top Ten Most Wanted Lobbyist Loopholes" conveniently omits any mention of numerous carve-outs and loopholes for favored Democrat constituencies in the regulatory reform bill currently pending in the Senate and supported by the White House.

"The White House-backed bill uses broad government powers to assert more control over Main Street businesses that had nothing to do with the crisis, while creating loopholes that can be exploited by trial lawyers, government sponsored enterprises, and billionaire hedge fund managers," Bachus said.  "The White House is protecting their own special interests while we're trying to protect the public from the bailouts and bureaucratic overreach that are rampant in the Democrat bill."

Provisions backed by the White House will ensure that hedge funds - whose managers are strong Democrat supporters - do not need to comply with regulations that are imposed on other financial firms, including the Volcker Rule restricting proprietary trading. "The Democrat plan will place massive new regulations on Main Street businesses and banks while providing generous exemptions to George Soros and billion dollar hedge funds," Bachus said.  "It just begs the question: whose side are they on?" 

Additionally, the White House falsely claimed on this list that the Dodd bill ends bailouts and Too Big to Fail.  "If the White House honestly thought that was true, why did Senators Dodd and Shelby have to introduce an amendment today that claims to strip those provisions out of the bill?"  Bachus questioned.  

Earlier today the Republican Leader's office put out its own list highlighting the White House efforts to create loopholes for its special interest allies.  Click here to view the Top 10 Special-Interest Loopholes in President Obama's Wall Street Bailout Bill.


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