Some Say Banks Should Be Allowed to Fail

2009-03-10 04:15:02 (GMT) (WiredPRNews.com - Money & Finance, News)

Senator Richard Shelby and other GOP leaders have expressed views that banks should be allowed to fail

GOP members express view that the government should let some large banks fail.

Wired PR News.com – Two Republicans in Congress have expressed views that the U.S. should let some large struggling banks fail, as opposed to bailing them out. As reported by Reuters, some, including GOP leaders, Senators John McCain and Richard Shelby have suggested that propping the banks up will only further escalate economic troubles.

Shelby is quoted as stating to ABC’s “This Week” of the large distressed banks, “Close them down, get them out of business. If they’re dead, they ought to be buried… We bury the small banks. We’ve got to bury some big ones and send a strong message to the market.”

McCain is also quoted as remarking of the issue to “Fox News Sunday,” “I don’t think they made the hard decision and that is to let these banks fail.”

Democratic Senator Schumer commented to NBC’s “Meet the Press” regarding a series of tests by the Obama administration on the current state of several large banks “Once these evaluations occur, there may be some banks — and we don’t know which ones, and I’m not going to name any — that will never make it… You don’t just keep putting money in, money in, money in — and the bank never solves it self.”