Financial Overhaul

Taxpayer Bailouts Cut From Reform Bill

Senate agrees to first amendment.

After a lengthy back and forth, things are finally moving forward with the financial overhaul bill. The first amendment agreed upon in the Senate will nix a taxpayer bailout fund for banks, which Republicans had vehemently opposed. Democratic Senate Banking Committee Chairman Chris Dodd of Connecticut and Alabama Sen. Richard Shelby, a top-ranking Republican, finally reached a deal on how to address "too big to fail" financial institutions, which is the first step for Republicans in allowing votes to be cast on amendments to the bill. “While we have had our differences in other areas,” Dodd said, “we have always shared a commitment to ensuring that taxpayers would never again be forced to bail out giant Wall Street firms that fail.” The vote reflects a pervasive attitude within Congress that the 2008 Bush bank-bailouts should never be repeated.