21-Apr-10 4:00 PM CST

Fighting Against Wall Street Bailouts

Congress is preparing to debate financial regulatory reform legislation authored by Senator Chris Dodd. I voted against the original government bailout of Wall Street, and I am fully committed to protecting our tax dollars from being used to rescue failed institutions from their own mistakes.

With that in mind, I have some serious concerns about this bill. In its current form, the bill would codify government policies which have sent billions of taxpayer dollars to Wall Street firms. This bill would also restrict access to credit for families and small businesses, which would further damage our weakened economy. It would also create broad new authority for government bureaucrats to regulate major sectors of the economy, many of which have never taken a dime from the taxpayers.

In this era of expanding government and exploding deficits, we need to focus on fiscally responsible solutions that protect taxpayers and the free market. This bill ignores the principle causes of the financial crisis and creates a burdensome new regulatory system that will increase costs for businesses and consumers. Congress must address the root causes of the recent financial crisis, close regulatory gaps, and fix the misguided policies that contributed to the housing crisis and subsequent credit crunch. This includes winding down mortgage giants Fannie Mae and Freddie Mac, ending bailouts of failed financial institutions that helped precipitate the crisis, and strengthening oversight of credit rating agencies. Private sector financial institutions should never rely on taxpayer contributions to stay afloat.

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