Back in April, GOP Rep. Peter Roskam appeared on WFLD's Fox Chicago Sunday and advanced the claim that the Democrats' financial reform effort amounted to "another bailout" of Wall Street:

In response, we noted that the Democrats were trying to actually prevent further bailouts with the legislation.  We also lamented that the Fox Chicago hosts seemed unequipped to rebut Roskam's claim.

Yesterday, however, the show featured an interview with Democratic Rep. Jan Schakowsky.  At one point, co-host Mike Flannery asked her about the Republican predictions of "endless bailouts" now that the bill has passed Congress.  She responded forcefully: "We have created a process -- a dissolution process -- that will unwind the [distressed] bank. ... None of that money will be paid for by taxpayers."  Watch it (full interview available here):

Indeed, in a recent article, MSNBC helpfully explained this provision of the bill:

Ending Bailouts

The bill would set up an "orderly liquidation" process that the government could use in emergencies, instead of bankruptcy or bailouts, to dismantle firms on the verge of collapse.

The goal is to end the idea that some firms are "too big to fail" and avoid a repeat of 2008, when the Bush administration bailed out AIG and other firms but not Lehman Brothers. Its subsequent bankruptcy froze capital markets.

Under the new rule, firms would have to have "funeral plans" that describe how they could be shut down quickly.

The Federal Deposit Insurance Corp's costs for running liquidations would be covered in the short term by a Treasury credit line, then recouped by sales of the liquidated firms' assets. In case of shortfalls, costs could be further covered by claw-backs of any payments to creditors that exceeded liquidation value, and fees charged to other large firms.

The FDIC could guarantee the debts of solvent insured banks to prevent bank runs. But this could only happen if the boards of the FDIC and the Fed decided financial stability was threatened, Treasury approved the terms, and the president activated a rapid process for congressional approval.

Glad to see Schakowsky get a chance to push back (even if it came three months after Roskam's claim first hit the airwaves).  To learn more about what it included in the financial reform bill, check out this Wonk Room post.