Senators Seek Curbs on Foreign Bailouts |
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May 21, 2010
The Senate approved Monday a measure that could make it harder to deploy U.S. funds in rescuing foreign governments, signaling Congress's unease with the sort of global economic aid recently given to Greece.
The Senate approved Monday a measure that could make it harder to deploy U.S. funds in rescuing foreign governments, signaling Congress's unease with the sort of global economic aid recently given to Greece.
The measure, adopted by a 94-0 vote as an amendment to the financial regulatory overhaul bill the Senate is considering, would require the Obama administration to certify that any future loans made by the International Monetary Fund would be fully repaid. Absent such as certification, U.S. representatives to the IMF would be required to oppose the lending. The U.S. is a major funder of the IMF, which provided loans to Greece as part of a larger support package.
"American taxpayers should not be involved in bailing out foreign governments," said Sen. John Cornyn (R., Texas), chief sponsor of the amendment. "Greece is not by any stretch of the imagination too big to fail."
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