Capito Denounces Financial Reform as Bailout for Wall Street, Crushing Blow to Main Street

Press Release

Today, the House passed H.R. 4173, the government takeover of the financial industry, by a vote of 237 to 192. Congresswoman Shelley Moore Capito (R-W. Va) denounced the bill as a bailout for Wall Street and a crushing blow to Main Street.

"Government intervention into the marketplace does not work. This government takeover of the financial system will kill jobs, weaken our economy and hurt small businesses. Burdensome regulations will restrict credit for community banks, limit consumer choice, and raise the operating costs for small businesses--our nation's job creators--across the nation." stated Capito, one of six House Republicans appointed to the House Financial Services Conference Committee.

In response to the Democrats last-minute decision to replace a $20 billion bank tax with a new accounting gimmick allocating accounted for TARP funds and increasing the FDIC reserve ratio to pay for new government programs, Capito stated that "West Virginians should not have to pay for the poor decisions of Wall Street bankers. This is no more than budgetary smoke and mirrors to disguise the fact that the American taxpayer will be on the hook to rescue Wall Street."

Capito also argued that the bill fails to address "too big to fail' and the reform of Fannie Mae and Freddie Mac.

"The people of West Virginia should not have to bail out large financial institutions that have engaged in risky behavior. Bankruptcy must be left on the table as it is for every other corporation in America," stated Capito.

"The government needs to stop playing CEO with taxpayer dollars and get out of the business of picking winners and losers."

Rep. Capito is a conferee on the Financial Services Conference Committee.

She is Ranking Member of the Subcommittee on Housing and Community Opportunity which oversees the Department of Housing and Urban Development, related federal agencies and tackles issues ranging from affordable housing to government-sponsored mortgage insurance programs, and the National Flood Insurance Program. She is also a member of two additional subcommittees: the Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises and the Subcommittee on Financial Institutions and Consumer Credit.

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