‘The bipartisan Dodd-Crapo bill should not be held hostage by efforts to attach much more controversial legislation’
WASHINGTON, D.C. - U.S. Senate Republican Leader Mitch McConnell made the following remarks on the Senate floor Wednesday regarding Senator Corker’s request to pass the Depositor Protection Act of 2009 to strengthen financial institutions:
“I know how important it is to our banking system, and especially our community banks, that the Senate pass S. 541, ‘The Depositor Protection Act of 2009.’
“This is a bipartisan bill by Senators Dodd and Crapo that would increase the borrowing authority of the Federal Deposition Insurance Corporation and thereby free up capital for banks to lend to small businesses and people who need it.
“‘The Depositor Protection Act’ is co-sponsored by senators across the political spectrum, like Senators Schumer, Brown, and Akaka, as well as Senators Bond, Gregg, and Corker.
“The fact that it has such diverse support underscores how important it is to our financial system.
“This is a bill we should pass without delay. Doing so would help our financial institutions, and thus our economy, during this economic downturn.
“The bipartisan Dodd-Crapo bill should not be held hostage by efforts to attach much more controversial legislation to it. Specifically, I understand that some of my Democratic colleagues want the Dodd-Crapo bill to pull to passage a controversial measure known as cramdown that would allow bankruptcy judges to rewrite mortgage contracts.
“Politically and economically, cramdown is the opposite of the Dodd-Crapo bill. Cramdown has bipartisan opposition, and it has bipartisan opposition, because it would worsen our economic situation.
“Last year, eleven Senate Democrats, along with every Republican in the Senate, voted against cramdown because its passage would worsen housing markets by raising interest rates for everyone in order to benefit a few. This, in turn, would make it more difficult for everyone, especially those of modest means, to own a home. This is the wrong prescription, at the wrong time, for an ailing housing market.
“These concerns, of course, have not gone away. And this year some Senate Democrats have publicly reiterated their opposition to cramdown.
“There are no such concerns with the bipartisan Dodd-Crapo ‘Depositor Protection Act of 2009.’
“We can pass it right now, Mr. President, on a bipartisan basis and help our financial situation.
“I hope my friends on the other side of the aisle will let us pass this important bill. They should not hold it up so they can chase something that is fraught with problems and, according to a Senate Democrat, isn’t going anywhere, anytime soon.
“I thank my friend from Tennessee for his efforts, and I yield the floor.”
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WASHINGTON, D.C. - U.S. Senate Republican Leader Mitch McConnell made the following remarks on the Senate floor Wednesday regarding Senator Corker’s request to pass the Depositor Protection Act of 2009 to strengthen financial institutions:
“I know how important it is to our banking system, and especially our community banks, that the Senate pass S. 541, ‘The Depositor Protection Act of 2009.’
“This is a bipartisan bill by Senators Dodd and Crapo that would increase the borrowing authority of the Federal Deposition Insurance Corporation and thereby free up capital for banks to lend to small businesses and people who need it.
“‘The Depositor Protection Act’ is co-sponsored by senators across the political spectrum, like Senators Schumer, Brown, and Akaka, as well as Senators Bond, Gregg, and Corker.
“The fact that it has such diverse support underscores how important it is to our financial system.
“This is a bill we should pass without delay. Doing so would help our financial institutions, and thus our economy, during this economic downturn.
“The bipartisan Dodd-Crapo bill should not be held hostage by efforts to attach much more controversial legislation to it. Specifically, I understand that some of my Democratic colleagues want the Dodd-Crapo bill to pull to passage a controversial measure known as cramdown that would allow bankruptcy judges to rewrite mortgage contracts.
“Politically and economically, cramdown is the opposite of the Dodd-Crapo bill. Cramdown has bipartisan opposition, and it has bipartisan opposition, because it would worsen our economic situation.
“Last year, eleven Senate Democrats, along with every Republican in the Senate, voted against cramdown because its passage would worsen housing markets by raising interest rates for everyone in order to benefit a few. This, in turn, would make it more difficult for everyone, especially those of modest means, to own a home. This is the wrong prescription, at the wrong time, for an ailing housing market.
“These concerns, of course, have not gone away. And this year some Senate Democrats have publicly reiterated their opposition to cramdown.
“There are no such concerns with the bipartisan Dodd-Crapo ‘Depositor Protection Act of 2009.’
“We can pass it right now, Mr. President, on a bipartisan basis and help our financial situation.
“I hope my friends on the other side of the aisle will let us pass this important bill. They should not hold it up so they can chase something that is fraught with problems and, according to a Senate Democrat, isn’t going anywhere, anytime soon.
“I thank my friend from Tennessee for his efforts, and I yield the floor.”
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