Joe Pitts: “Beginning in the fall of 2008, Congress approved, and the Bush and Obama administrations began to hand out taxpayer…”

“Beginning in the fall of 2008, Congress approved, and the Bush and Obama administrations began to hand out taxpayer money freely to banks and, eventually, auto companies, with little transparency and, in some cases, little hope that the money would be repaid. Now, the Senate is set to consider legislation that will create a permanent culture of bailouts on Wall Street. The legislation moves us away from sending failed companies into bankruptcy and toward government-managed bailouts. There would be a different set of rules for the largest firms, rules that create a perverse incentive for these companies to take risks, rules that encourage lower rates for the largest firms because of the implicit government guarantee. Ultimately, we would be creating a dozen new Fannies and Freddies, not reforming a broken system of government oversight. I think the American people have had enough of bailouts. The Dodd bill creates an endless cycle of failure where Wall Street bankers are the only ones who come out ahead. It should be stopped.”