Big Bank Failures Not Harmful to Taxpayers

A new vote in front of the Senate hopes to cut the losses that would be felt by taxpayers should any of the large banks fail in the future. This is part of the financial restructuring plan that the Obama administration has put into action. Whether or not the action will pass remains to be seen as many of the Senate members are not sold on the strict regulations that have been added to the bill.

However, the Senate voted 96-1 on Wednesday on the legislation that would end the burden that the people of the US held when it came to big bank failures. Many have hailed this as a victory for the regular people of the world. Still there is much to be done when it comes to protecting the economy from the large financial institutions that have made poor business decisions in the past.

Several amendments to the bill have been placed before the Senate, some of which have come under heavy fire. Spokeswoman Amy Brundage says “The proposal is nothing more than a lobbyist-influenced defense of the status quo and an attempt to water down the consumer protections bill.”

The amendments are largely due to the republican influence and many are saying that it is nothing more than the work of a powerful group of financial institution lobbyists. That said, the entire bill still looks to form a separate bureau that would be an extension of the Federal Reserve. The job of the proposed bureau would be to police the lending of the large banks in the US.

One amendment that has been agreed upon by the Senators is to limit the power of the new bureau. The fear is that they will be too strict and further limit the recovery of the economy.