Vidalia, GA – Incumbent Democratic Congressman John Barrow’s June 30th vote for the Dodd-Frank financial regulatory reform bill is a vote for permanent bank bailouts and against taxpayers, according to Republican congressional candidate Ray McKinney of Lyons.
“This is a naked power grab by Mr. Barrow and his Democratic cohorts,” said McKinney. “Instead of focusing on putting Americans back to work, this bill actually kills jobs by restricting access to credit and raising taxes on banks that loan to small businesses and family farmers.”
The House-Senate conference report of H.R. 4173 passed on a party-line vote of 237-192. It is currently awaiting action by the Senate. The measure:
- Makes bailouts permanent and uses taxpayer dollars to bail out troubled firms.
- Allows firms to be designated as “too big to fail” and establishes a special regulatory structure and resolution process for certain Wall Street companies.
- Covers the $19 billion cost of the bill with TARP money and new taxes on banks.
- Creates several new government offices and agencies.
- Gives the FDIC authority to determine how and when creditors of a failed firm would be paid.
“It’s a basic tenet of free market principles that freedom to succeed must include freedom to fail,” said McKinney. “This bill takes away personal responsibility with the philosophy that some institutions are ‘too big to fail.’ So, when they make bad decisions, instead of forcing them into bankruptcy, we’re going to bail them out?”
McKinney continued: “Incredibly, the bill doesn’t even deal with Fannie Mae and Freddie Mac, the two institutions most responsible for the current financial and housing crises. The bottom line is that Barrow has voted for another tax increase and is thumbing his nose at Americans who want more jobs.”