Rep. Bernie Sanders gives an impassioned House floor speech against an affirmative vote on H.Res. 111, the Rule to consider H.R. 1175. The House passed H.R. 1175, to authorize supplemental appropriations for fiscal year 1991, which included a significant provision of funds for S & L bailout. Mar 13, 1991….(read more)

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Bernie Sanders on Bank Bailouts during the S&L Crisis [3/13/1991]

The Savings and Loan (S&L) Crisis of the late 1980s and early 1990s remains one of the most significant financial meltdowns in American history. It was a time when the country’s savings and loan institutions faced severe liquidity problems and insolvency, leading to the collapse of hundreds of these once-thriving institutions.

During this period, Bernie Sanders, a politician known for his progressive stances, was serving as the Representative for Vermont’s at-large congressional district. Sanders had a consistent track record of championing the interests of ordinary Americans, often standing up against corporate interests and advocating for income equality.

When it came to the S&L crisis, Sanders was highly critical of the bank bailouts that were proposed to address the unfolding catastrophe. He saw these bailouts as measures that would primarily benefit the wealthy and only exacerbate the inequalities in the American financial system.

In his speech on March 13, 1991, Sanders addressed the House of Representatives, highlighting the underlying issues that led to the crisis and providing his perspective on resolving it. He pointed out that the S&L crisis was a result of risky investments and deregulation, which allowed institutions to gamble with depositors’ money. Sanders argued that these institutions were “engaging in the most absurd, unsound, and speculative actions.”

Rather than supporting large-scale bailouts funded by taxpayers, Sanders proposed a more grassroots approach to dealing with the S&L crisis. He believed that the government should protect small depositors who had been victimized by the mismanagement of these institutions. However, he was opposed to using public funds to bail out the wealthy individuals and corporations that were responsible for the crisis in the first place.

Sanders suggested that those responsible for the S&L crisis be held accountable and that they repay the American people for their irresponsibility. He called for trials and investigations to ensure that justice was served, and he vehemently opposed any government measures that would reward, rather than punish, those who had engaged in fraudulent activities.

Sanders’ stance on the S&L crisis is consistent with his overall philosophy of challenging corporate power and emphasizing the needs of regular Americans. He fought against a system that privileged the wealthiest while leaving ordinary citizens to suffer the consequences of financial misdeeds.

While the S&L crisis bailout eventually moved forward with support from many politicians, Sanders’ opposition to the use of taxpayer money to rescue wealthy individuals and corporations marked yet another point in his political career where he stood up against the status quo. His unwavering commitment to accountability and justice serves as a testament to his dedication to serving the people and promoting a fairer and more equitable society.

Overall, Bernie Sanders’ stance on bank bailouts during the S&L Crisis demonstrated his tireless advocacy for the American people. He resisted the traditional approach of using taxpayer money to rescue mismanaged institutions and instead sought justice for those affected by the crisis. Sanders’ unwavering commitment to his principles has consistently set him apart as a politician who prioritizes the well-being of ordinary citizens over the interests of Wall Street and corporate elites.