Senators File Bipartisan Amendment to Strip Wall Street Bailout Provision from Government Funding Bill
WASHINGTON, DC - United States Senators Elizabeth Warren (D-Mass.) and David Vitter (R-La.) today filed a short, one-page, bipartisan amendment to remove a provision from the government funding bill that would allow for future bailouts of financial institutions that engage in risky derivatives trading.
"Ever since the new financial regulations went into place, Wall Street has been working behind the scenes to open another loophole so they could gamble with taxpayer money and get bailed out when their risky bets threaten to blow up our financial system," said Senator Warren.
"Congress should not put taxpayers on the hook for another bailout, and this giveaway that was drafted by Citigroup lobbyists has no place in a critical government funding bill."
"Before Congress starts handing out Christmas presents to the megabanks and Wall Street - we should vote on this bipartisan amendment," Senator Vitter said. "We need to remove these risky derivatives that aren't even necessary for normal banking purposes and would only make future taxpayer funded bailouts more likely."
The provision in the government funding bill would repeal section 716 of the Dodd-Frank Wall Street Reform and Consumer Protection Act that prohibits federal assistance to financial institutions that engage in certain derivatives activities.