Boxer Introduces Amendment to Ensure No Taxpayer Funds Will Be Used to Bail Out Wall Street

Washington, D.C. – U.S. Senator Barbara Boxer (D-CA) today introduced the first amendment to Wall Street reform legislation, which would ensure that taxpayer funds will not be used to bail out financial institutions.

Senator Boxer said, “If there’s one thing all of us can agree on, it’s that taxpayers should not have to pay for the mistakes of Wall Street. This amendment will make clear that taxpayers will never again be on the hook to bail out failing financial firms.

“The debacle on Wall Street spread through the economy, led to painful job losses, home foreclosures and the loss of retirement savings and consumer confidence. With this amendment, we are sending a clear message to Wall Street firms that they can no longer gamble with our financial security and expect that taxpayers will rescue them.”

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.