May 8, 2010 (Washington D.C.) – In today’s politically divisive climate, it’s rare for Senators to unite on any issue. But an amendment by Senator Barbara Boxer (D-CA) to Wall Street reform legislation to ensure that no taxpayer funds will be used to bail out financial institutions has passed by a 96-1 vote.
“By passing this amendment, we make it clear – in law – that taxpayers will never again bail out Wall Street firms for their costly mistakes,” Boxer said.
She added, “The reckless actions of Wall Street led to painful job losses, home foreclosures and the loss of retirement savings and consumer confidence.To protect taxpayers, we will create an orderly process to liquidate failing financial firms and ensure that Wall Street pays to clean up its own messes.”
The full text of the Boxer amendment is below:
Purpose: To prohibit taxpayers from ever having to bail out the financial sector.
SEC. 212. PROHIBITION ON TAXPAYER FUNDING.
(a) LIQUIDATION REQUIRED.—All financial companies put into receivership under this title shall be liquidated. No taxpayer funds shall be used to prevent the liquidation of any financial company under this title.
(b) RECOVERY OF FUND. – All funds expended in the liquidation of a financial company under this title shall be recovered from the disposition of assets of such financial company, or shall be the responsibility of the financial sector, through assessments.
(c) NO LOSSES TO TAXPAYERS. – Taxpayers shall bear no losses from the exercise of any authority under this title.