April 26, 2010

Crapo: Financial Reform Bill Misses The Mark

Doesn't stop bailouts and hurts Main Street

Washington, D.C. - Idaho Senator Mike Crapo, a member of the Senate Banking, Housing and Urban Affairs Committee, today voted against a motion to proceed to the Financial Reform bill (S. 3217) being offered by Senate Banking Committee Chairman Christopher Dodd. Crapo noted the Dodd bill as written is opposed by a number of taxpayer and small business groups because it would not stop future taxpayer bailouts, restricts the ability of Americans to invest in start-up companies, imposes major new costs on small businesses, such as medical professionals, hardware, electronics, and jewelry stores, and does nothing to reform Fannie Mae and Freddie Mac. The motion to proceed was defeated on a vote of 57 to 41. 60 votes were needed to proceed.

"Republicans and Democrats agree on the need to address the financial crisis that occurred in 2008," Crapo said. "Unfortunately, this is a partisan bill that was forced too quickly to the Senate floor and rejects negotiations that have occurred. A bipartisan bill should address risky practices that led to unprecedented taxpayer bailouts and new high levels of government debt. At the same time, it is essential that Congress addresses the problems that led to the financial crisis without worsening the current economic climate.

"I voted no on the motion to proceed and when the Senate Banking Committee considered the Democrats' financial reform bill because the legislation does not end 'too-big-to-fail' and future bailouts. Furthermore, it restricts access to credit and discourages capital formation in this country to work and yet once again creates a large, new, expensive government bureaucracy unreasonably extending the federal government's control over the economy-hurting Main Street not Wall Street. Finally, the bill ignores reforming Fannie Mae and Freddie Mac, which stand out as the source of the greatest taxpayer losses."