Mitch gets fact-checked

The nonpartisan fact-checking website PolitiFact has looked into Mitch McConnell's latest talking point:

Sen. Mitch McConnell said that new financial regulations under consideration in the Senate could lead to only one thing: bailouts.

"In fact, if you look at it carefully, it will lead to endless taxpayer bailouts of Wall Street banks," McConnell said at a press conference on April 14, adding that it "actually guarantees future bailouts of Wall Street banks" and that it sets up "in perpetuity the potential for additional taxpayer bailouts of large institutions."

...In ruling on McConnell's statement, that financial reform "actually guarantees future bailouts of Wall Street banks," we base our ruling primarily on the legislation. It clearly states that the intention is to liquidate failing companies, not bail them out. To do that, it creates a fund with contributions from financial firms, not from taxpayer funds. We do not see any element of the bill that expressly permits ongoing, "endless" outlays from the federal treasury. Is it possible that liquidation may cost the government money, potentially more money than is allowed for in the bill? Yes. But even so, McConnell is using seriously overheated rhetoric. Nothing in the bill "guarantees" future bailouts of Wall Street banks. We rate his statement False.