Financial Reform Bill

Statement

Last week the Senate approved legislation that was meant to end taxpayer-funded bailouts and reform our financial system on the heels of one of the worst economic collapses this nation has seen in decades. I was pleased that the Senate adopted an amendment I sponsored designed to protect taxpayers from having their hard-earned tax dollars used to bail out foreign governments like Greece. Passed by the Senate on a vote of 94-0, my amendment requires the Administration to evaluate any proposed International Monetary Fund (IMF) bailout of a foreign nation, and if the Administration cannot certify that the funds will be repaid, it will be required to oppose the bailout and vote against it at the IMF. Texas' taxpayers have already seen more bailouts than they can stomach, and my amendment will help safeguard them from being forced to underwrite the out-of-control spending practices of irresponsible foreign governments.

Though I was happy to see my amendment garner wide support, I could not in good conscience support the final version of the bill, because it still allows large financial firms to avoid bankruptcy--bailouts the American people have soundly rejected. The bill also fails to reform Fannie Mae and Freddie Mac, which were at the center of the housing and financial crisis. Instead, it unfairly punishes small businesses, local credit unions, and community banks that had no role in causing the economic crisis by imposing more regulations and red tape.

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