Saturday, June 26, 2010

Obama Financial Regulation Bill is Bank Bailout Bonanza

Everyone knows President Obama takes average Americans for suckers, but does he have to be to transparently obvious about it?

Here's his Saturday address below, on the new financial regulation bill in Congress. And get this:
The White House homepage notes that the bill "creates a resolution authority to wind down firms whose collapse would threaten the entire financial system." And the president says "we'll create what's called a resolution authority that will help wind down firms whose collapse threatens our entire financial system." But then Obama sums that up by claiming, "Put simply, we'll end the days of taxpayer bailouts..."

Say what? No more Wall Street bailouts?

Well, not exactly. Check the Heritage Foundation, "
Obama: Read My Lips, No More Bailouts (But Let’s Keep $50 Billion Around Just in Case)." In fact, the bill includes $50 billion in that resolution account, which will --- wait for it! --- bailout failing firms at taxpayer expense. And according to the Wall Street Journal:
Republicans warned it could restrict access to credit and enshrine the idea that the government won't allow big firms to fail.

In a bid to address the causes of 2008's market collapse, the bill gives regulators power to constrain the activities of big banks, including forcing them to divest certain operations and to hold more money to protect against losses.

If those buffers don't work, the government would have the power to seize and liquidate a failing financial company that poses a threat to the broader economy.
Sounds like this won't be the "end of financial bailouts" after all.

Obama. Is. Fail.

RELATED: At The Hill, "Obama asks Congress to take financial reform over the ‘finish line’." And Jules Crittenden, "Porky Bank." (Via Memeorandum.)