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."  Read more...

The GOP co-chairman of the White House fiscal commission said a value-added tax would require income tax changes.

A quarterly study from the accounting firm PricewaterhouseCoopers found that 73 percent of respondents believed legislative or regulatory reforms could hinder economic growth over the next 12 months. 

"Many companies are projecting positive growth throughout the year, however, increased concerns over legislative and regulatory pressures may inhibit the rate of growth in the short term," said Barry Misthal, a manufacturing analyst at the firm, in prepared remarks. Read more...

The Treasury Department is making an 8.5 percent return from the bailout started during the financial crisis. 

Republicans are criticizing the administration for hailing GM’s repayment of $4.7 billion to the government last week.

More than 60 lawmakers signed a letter calling for a criminal investigation of Goldman Sachs.

Citigroup CEO Vikram Pandit has pledged support for financial regulatory reform, according to a letter obtained by The Hill. 

Goldman Sachs had too much debt leading up to the 2008 financial crisis, the head of the investment bank said Tuesday night. 

Because of the economic collapse, firms will probably operate more conservatively into the future but legislation is still needed to end the 'too big to fail' mentality, CEO Lloyd Blankfein told lawmakers on the Senate Permanent Subcommittee on Investigations. 

"With the benefit of hindsight we were too leveraged," he said. Goldman Sachs has cut its ratio of debt to equity in half since they accepted help from the federal government, he said. 

He advocated requiring firms to hold more capital and liquidity, especially because most financial companies and their actions are interconnected. 

"Some additional legislation is warranted," he said and, "I would like to be helpful."

Major changes to spending, tax and entitlement programs will be needed to head off a financial crisis, members of the White House fiscal commission said  Tuesday during its first meeting.