Garrett explains why Dodd's reform bill perpetuates bailouts

Rep. Scott Garrett (R-N.J.) on Wednesday explained why the financial reform bill crafted by Senate Banking Chairman Chris Dodd (D-Conn.) creates endless bailouts for financial institutions. 

"Even if you took out the $50 billion [reserve] fund, you would still have Section 210H, which would allow for the securing of creditors; you would still have Section 1151 and 1155 that would allow that as well; you would still have Section 113, which would expand the powers of the bailout to go even further than they do now," he said. "So you have a number of other sections -- which is just off the top of my head -- that would expand the ability of the Federal Reserve and the Treasury to do what they did this past time and that is use taxpayers' money to be at risk to bailout Wall Street." 

The Senate is preparing to vote on Dodd's reform bill for a third time later today. So far, Senate Democratic leader Harry Reid (D-Nev.) cannot garner enough support to begin debate on the measure. 

Garrett argues a floor debate on the proposal is the wrong place to try and fix the bill. 

"That is not the appropriate process to go through," he said. "You will probably not be able to have the debate and discussion on these issues And, secondly, even if you did pull out those provisions in the bill you still will basically, in essence, be perpetuating the system that we [already] have here."

Garrett went on to say that Dodd's bill benefits larger banks at the expense of smaller banks and taxpayers. 

"If there is any party that is standing up for the big banks, it's the Democrats," he said. "If there is any party that is standing up for the little guy, for Main Street and small community banks, and taxpayers in general, it's the Republican Party."