July 15, 2010

Crapo: Financial Bill Restricts Credit, Maintains Bailouts

Says bill could make struggling economy worse

Washington, D.C. - Facing a measure that will choke economic growth by restricting credit and fail to end bailouts, Idaho Senator Mike Crapo today voted against H.R. 4173, the Restoring American Financial Stability Act of 2010, more commonly known as the financial reform bill. Crapo was a member of the House-Senate conference committee on the legislation.

"This bill makes credit more expensive which will impact Main Street and job creation," Crapo said. "The best way to get people back to work and improve their financial condition is for employers to have adequate access to the credit they need.

"This measure also discourages capital formation and creates a large, new and expensive government bureaucracy that unreasonably extends the federal government's control over the economy. More than 500 new regulations are being placed on small businesses and individuals; when coupled with the tightening of credit, this will further stifle the economy and job creation, which will certainly affect struggling individuals seeking employment.

"Lastly, the largest potential banking bailout in U.S. history will be that of government-run Fannie and Freddie. This bill does nothing to change that," Crapo concluded.

The measure was narrowly approved by the Senate 60 to 39, on a nearly party-line vote.