Some banks should be allowed to fail, say two top Republicans
WASHINGTON (CNN) — Two top Senate Republicans said Sunday that banks shouldn't be able to count on any more bailout money — and that the federal government should let some of them fail rather than distribute further funds to keep them afloat.
"Close them down, get them out of business. If they're dead, they ought to be buried," Sen. Richard Shelby, the Ranking Republican on the banking committee, told ABC's This Week. "We bury the small banks — we've got to bury some big ones, and send a strong message to the market." He did not mention any banks by name, although he responded to a question about Citigroup by noting that "Citi's always been a problem child."
Former GOP presidential candidate John McCain told Fox News Sunday that he did not think President Obama "made the hard decision, and that is to let these banks fail." He did not call for nationalization of troubled financial institutions, which many Republicans oppose, but said their assets should be sold. "Unfortunately, the shareholders and others will take a beating," he said.
Heh! Shelby and McCain must have sold their stock already.