Washington, Dec 9, 2009 -

SUMMARY: if passed, HR 4173 would raise borrowing costs, result in 1 million less jobs, allow the federal government to decide “winning” and “losing” businesses, and create a permanent $200 billion bailout fund from taxpayer dollars.

• Cost: $9.4 billion in new government spending.
• Authorizes Permanent Bailouts: the FDIC, without Congressional approval, would be authorized to extend endless federal guarantees and loans to financially troubled firms for the sake of “financial stability” and the agency would not be required to unwind such a failing firm—meaning that certain parts of the “zombie” company could be propped up indefinitely using taxpayer dollars.
• Promotes systemic risk and undermines financial stability: the government will continue to spare financial firms from the consequences of their mistakes by creating a $200 billion bailout fund funded by yet more new taxes.
• Expands a failed regulatory structure:  would create a Consumer Financial Protection Agency with authority to dictate the types and terms of all credit products offered to consumers.
• More government control: would create a “Credit Czar” who can unilaterally impose fees and other assessments on providers of financial products and services and financial transactions.
• More regulation: imposes a new system of complex regulation and overly-burdensome requirements on businesses.