In an effort to prevent even more federal meddling in our free market system,U.S. Rep. Blaine Luetkemeyer (MO-9) today voted against the massive financial regulation bill that picks winners and losers, and makes permanent taxpayer funded bailouts.       

“The government has a poor record of managing hard-earned taxpayer dollars, which is why I could not support a bill that actually gives the government even more control of people’s money and continues the reckless meddling of government in our free market system,” Luetkemeyer said. “After more than 30 years as a community banker, I am certain the current approach to financial regulatory reform isn’t balanced and will cause credit to be restricted and more costly to the small business borrowers who are vital to helping turn our economy around.” 

The legislation perpetuates unpopular bailouts by authorizing the FDIC to determine how and when creditors of a failed firm would be paid. This new authority given to the FDIC allows the government to pick winners and losers. The legislation also expands the reach of government into the free market by creating several new offices and agencies -- among them the Consumer Financial Protection Bureau and the Office of Financial Research.

Luetkemeyer is concerned that the legislation fails to reform Fannie Mae and Freddie Mac, two firms that played a direct role in our nation’s economic crisis. Taxpayers have been on the hook for $145 billion since taking over Fannie Mae and Freddie Mac, while Congress has neglected proposals to reform the companies and recover taxpayer dollars. The Congressional Budget Office has indicated that without reform to these entities, the cost to taxpayers will continue to grow.

Luetkemeyer said Congress should not penalize hard-working families who have played by the rules and lived within their means for the bad decisions made in Washington and on Wall Street. Luetkemeyer supports ending the era of taxpayer-funded bailouts, ending the ability of the government to pick winners and losers, and putting personal responsibility back into our free markets.

“The American people want accountability and responsibility on Wall Street -- not more federal bureaucracy and government control.” Luetkemeyer said.

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