Rep. Bernie Sanders’ (I-VT) speech on the House floor rejecting bailout measure as a pretext for deficit reduction measures that come at the expense of ordinary American families and workers. Mar 21, 1991…(read more)

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Bernie Sanders, the prominent US Senator from Vermont, has been a vocal critic of bank bailouts for decades. In 1991, during the Savings and Loan (S&L) crisis, Sanders was one of the only politicians to vote against the bailout package proposed by President George H.W. Bush.

The S&L crisis began in the 1980s, as banks were overextending themselves with risky loans and investments. When the economy slowed, many of these banks began to fail, leaving the government with the task of bailing them out.

In March 1991, the government proposed a $70 billion bailout package for the S&Ls, which had already cost taxpayers around $150 billion. Bernie Sanders was one of only two members of the House of Representatives to vote against the package, citing concerns about its fairness and efficacy.

Sanders argued that the bailout would reward the same bankers who had caused the crisis, and that it would do nothing to prevent future crises. Instead, Sanders called for a thorough investigation into the causes of the crisis, and for criminal charges to be brought against any bankers who had committed fraud or other crimes.

Sanders also called for greater regulation of the banking industry, arguing that the government had the responsibility to protect taxpayers from the actions of reckless bankers. He proposed a tax on financial transactions, which would discourage short-term speculation and raise revenue for important social programs.

Sanders’ opposition to the S&L bailout was met with criticism from some quarters, who argued that it was necessary to prevent a collapse of the entire banking system. However, Sanders remained steadfast in his belief that the bailout was a bad deal for taxpayers and for the long-term health of the economy.

Today, as the US faces another crisis in the form of the COVID-19 pandemic, Sanders’ views on bank bailouts are more relevant than ever. As the government considers measures to support struggling businesses and individuals, Sanders has once again called for a bailout that prioritizes the needs of working people over the interests of Wall Street.

In an op-ed for The Guardian in March 2020, Sanders argued that any bailout should come with conditions, such as a ban on stock buybacks and dividends, and a requirement that companies maintain payrolls and provide paid sick leave. He also called for a much larger investment in healthcare, education, and infrastructure.

Sanders’ uncompromising stance on bank bailouts has earned him respect from many Americans who are frustrated with the power of Wall Street over the political system. Whether or not he will be successful in pushing for reform, his voice remains an important one in the ongoing debate over the role of government in regulating the economy.