Hillary Clinton: I Guarantee No Taxpayer Bailouts For Banks

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Hillary Clinton guarantees she would not bail out a bank if she becomes president in an interview with Morning Joe.

BRZEZINSKI: Yes, I respect that call. Can you assure the American people that you didn't say anything in those speeches that would undermine your promise to be tough on Wall Street?

CLINTON: Absolutely. Absolutely. And besides, I'm on the public record. I told them what I'm going to do. I said I'm going to go after big banks that pose a systemic risk. I want you to hold me accountable for that because I will do that exactly.

SCARBOROUGH:(INAUDIBLE) because one of the chief complaints that a lot of people have is after the bailout the banks that were too big to fail got even bigger. Haven't they got even bigger?

CLINTON: I think they have.

SCARBOROUGH: I think whether it's Bank of America, or J.P. Morgan, or -- any of these big banks -- if they went down tomorrowwe'd all be on the line again for that, right?

CLINTON: Well, no, because now we're not going to bail them out. I mean, they have gotten bigger, but they've also been under much closer scrutiny.

SCARBOROUGH: So, if Bank of American -- and I'm going to get into big trouble -- let's just say an ebank. We found out that what happens to Lehman Brothers is going to happen to Bank of America your third week in office. Somebody said listen, this is very simple. You let us go down, ATM machines across America are going to shut down, then our people aren't going to be able to get their money. You have to save us or the economy collapses. What do say to them?

CLINTON: I say under Dodd-Frank we have an orderly unwinding of your bank because you are now posing a systemic risk.

SCARBOROUGH: But, Madame President, the markets will absolutely collapse. Look how badly they collapsed after Lehman Brothers. We need you to step in now or you're going to be responsible for a global depression. What do you tell them?

CLINTON: We're going to do in an orderly way so there will not be any surprises. The reason we passed Dodd-Frank was to make it clear no bank is too big to fail, no executive too powerful to jail. And we've got to keep face with the American people. I'm sorry that you’ve made bad decisions, but we're going to have to unwind you and yes, break you up. And parts of you will be very successful going forward and others parts won't. And if there is any accountability that needs to be imposed on individual decisions, we will also follow through on that. I think it's a --

SCARBOROUGH: So, you can make the guarantee today that if you're president of the United States, under no circumstances will there be a taxpayer-funded bailout of these big banks?

CLINTON: If the pose a systemic risk, we've got the process under Dodd-Frank now.

SCARBOROUGH: OK.

CLINTON: The tools have been provided and we have to follow through on that. And that banks have to know that we will follow through.

SCARBOROUGH: That's a guarantee of no taxpayer bailout?

CLINTON: No, because that's what we tried to fix in Dodd-Frank --

SCARBOROUGH: Right.

CLINTON: -- and my point too, though, Joe, is this. I want to go further because if you really look at what happened in '07, '08 -- and you mentioned Lehman Brothers. It was investment banks like Lehman Brothers. It was big insurance companies like AIG. It was mortgage companies like Countrywide. So, the only culprits were not just the bank. There were others, as well. And I'm the only one with the plan who says, hey guys, Dodd-Frank is great. It gives us a foundation. It doesn't go far enough. We need to look at these other entities that pose systemic risks, as well.

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