In Their Own Words: Geithner Makes the Case for Permanent Bailouts

Conn Carroll /

Conservatives say the Dodd Finance Bill means Wall Street Bailouts Forever. Progressives say the Dodd bill “makes bailouts impossible.” Who’s right? Well lets ask Treasury Secretary Timothy Geithner who described the bill this way in The Washington Post:

The Senate bill gives the government the authority to wind down the firm with no exposure to the taxpayer. No more bailouts. Instead, we will have a bankruptcy-like regime where equityholders will be wiped out and the assets will be sold.

“No more bailouts.” Sounds nice. But what does “bankruptcy-like regime” mean? (more…)