(Washington, D.C.) – Today, U.S. Senator Patty Murray
(D-WA) voted to ensure that as part of Wall Street Reform legislation
Washington state taxpayers are never again responsible for bailing out failing
Wall Street firms. The amendment (3737), to the Restoring American Financial Stability Act, which the Senate is currently debating,
passed by a vote of 96-1.
“While there may be some aspects of Wall Street Reform
that are complex, this isn’t,” said Senator Murray. “This vote
makes it absolutely clear that Wall Street Reform will spell an end to taxpayer
funded bailouts for Wall Street. It’s time for Wall Street to be on the hook to
clean up their own mess.”
The amendment Senator Murray voted to support will allow
the Federal Deposit Insurance Corporation (FDIC) to liquidate a failing Wall
Street firm and to put the costs of that failure on the firm, its creditors, or
the financial sector.
Specifically, the amendment which applies to Title II of
the Wall Street Reform bill, makes it clear that:
- No failing firm may enter any FDIC resolution
process under Title II without being liquidated. No taxpayer money may be used
to keep a failing firm alive; instead, any resolution will guarantee the
termination of the firm. - Any funds used to liquidate a failing firm must
come from either selling off the assets of the failing firm, or else from a
“user fee” type assessment on the financial sector. (This is the way the
current FDIC deposit insurance fund is handled). - Taxpayers shall bear no losses from the exercise
of any government liquidation authority under Title II.
The amendment that passed today was introduced by Senator
Barbara Boxer (D-CA) and co-sponsored by Senator Murray.
Senator Murray has said that the end to taxpayer funded
bailouts is one of the core principles in strong Wall Street Reform legislation
that she is working to pass to hold Wall Street accountable and protect
Washington families. Watch Senator Murray discuss her goals for Wall Street Reform
in a speech on the U.S. Senate floor
See more information about the end to bailouts in the
Wall Street reform bill.
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