Nov 08, 2017

Flashback: Baldwin’s Bank Bailouts

Post by Freedom Partners

Arlington, VA – Senator Tammy Baldwin recently criticized the unified framework for tax reform, arguing that it would benefit “big banks and powerful corporations.” What Baldwin forgot to mention was her own vote for a $700 billion bank bailout, sending billions of taxpayer dollars to some of the largest banks in the world.

The fact is, the current tax code is rigged to benefit the powerful and well-connected, and the reform bill that the House released took significant steps to level the playing field, eliminating hundreds of billions of corporate welfare. If Tammy Baldwin wanted to offset her bailout for the “big banks,” supporting this tax reform framework would be a good place to start.


BALDWIN VOTED TO USE BILLIONS OF TAX DOLLARS TO BAIL OUT SOME OF THE BIGGEST BANKS IN THE WORLD

Baldwin Voted To Bail Out Big Banks In The Emergency Economic Stabilization Act Of 2008. (H.R. 1424, Roll Call Vote #681: Passed 263-171: R 91-108; D 172-63, 10/3/08, Baldwin Voted Yea)

  • The Bailout – Originally Pegged At $700 Billion – Was Described At The Time As “The Most Expensive U.S. Government Intervention In History.” “The U.S. House of Representatives gave final approval Friday to the $700 billion bailout for the financial system, reversing course to authorize what may be the most expensive U.S. government intervention in history.” (David M. Herszenhorn, “Congress Approves $700 Billion Wall Street Bailout,” The New York Times, 10/3/08)

The Nine Banks That Received The First Capital Injections From The Bailout Accounted For Around 75 Percent Of All Assets Held By U.S. Banks. “On Oct. 13, after Congress had passed the $700 billion financial bailout program earlier that month, Treasury provided capital injections for nine institutions that together held over $11 trillion in assets: Bank of America, Citigroup, Wells Fargo, JP Morgan Chase, Goldman Sachs, Morgan Stanley, Merrill Lynch, State Street and the Bank of New York Mellon. As of June 2008, these nine banks accounted for around 75 percent of all assets held by U.S. banks.” (Matthew Jaffe, “Government Watchdog Says Treasury And Fed Knew Bailed-Out Banks Were Not Healthy,” ABC News, 10/5/09)

These Nine Banks Received $125 Billion In Bailout Funds:

(“Capital Purchase Program,” U.S. Department Of The Treasury, Accessed 10/26/17)

* “Initially allocated to Merrill Lynch, which Bank of America purchased on Jan. 1, 2009” (“Bailed Out Banks,” CNN Money, Accessed 10/26/17)