Press Releases

Bachus: Once Again Democrats Pick More Bailouts Over Protecting Taxpayers

WASHINGTON, May 19, 2010 -

- Financial Services Committee Ranking Member Spencer Bachus today said Democrats are again voting for more bailouts as the Committee Democrats voted to send a $30 billion bailout bill (H.R. 5297) to the floor without approving key Republican amendments to protect taxpayers and increase oversight.

"It's about time the Democrats finally start to focus on one of the driving causes of the nation's double digit unemployment rate, but picking bailouts over protecting taxpayers is simply the wrong approach," Bachus said.  "Their bailout proposal is another round of TARP that will drive up the national debt and crowd out funding in the private market for small businesses.  That's not the kind of solution small businesses need, or that taxpayers demand," Bachus said. 

Multiple amendments to increase transparency and strengthen taxpayer protections were offered by Republicans, including one by Rep. Jeb Hensarling, the Ranking Member of the Financial Institutions Subcommittee, that would give the Special Inspector General for TARP oversight authority for the Small Business Lending Fund (SBLF).  

"Democrats continue to follow the Greek model and believe that they can spend, borrow, and tax their way to prosperity," Hensarling said.  "This failed economic policy has cost taxpayers trillions of dollars, while unemployment remains mired at a generational high 10%.  Although the $30 billion proposal is called SBLF, it reads like T-A-R-P.  This is TARP's capital purchase program without the accountability, and with a GSE-like incentive to lend."

Other Republican-offered amendments that were voted down by the Democrats include:

  • Garrett (097) - Amendment would make the enactment date for the Small Business Lending Fund (SBLF) October 4, 2010, which is the day after TARP expires. 

  • Price (296) - Pay-go amendment.

  • Hensarling (169) - Amendment would give SIGTARP oversight authority for the Small Business Lending Fund.

  • Biggert (105) - Amendment would require certain small business tax relief provisions to go into effect prior to this legislation becoming effective.

  • Hensarling (179) - Amendment would require applicant banks to write letters to Treasury certifying that they have qualified borrowers requesting loans, but not adequate capital to lend.

For more information on the Committee Republicans' comprehensive financial reform plan, which includes putting an end to taxpayer funded bailouts, click here.


Print version of this document