Holy honey pot!

The Senate passed an amendment to the financial reform bill that eliminates the $50 billion fund to pre-finance dissolution of failing financial companies. According to the NY Times:

Mr. Shelby’s amendment eliminated a $50 billion fund that was designed to help bridge financial shortfalls while a failing company was undergoing liquidation. Mr. Shelby said the fund was “a honey pot” that would facilitate “backdoor bailouts.”

Mr. Dodd, who vigorously denied that the fund was a bailout authority, said he had “no objection” to dropping the provision “because whether they pay in advance or after the fact, these costs will be paid by Wall Street and not taxpayers.”

The Shelby amendment also requires the Federal Deposit Insurance Corporation to oversee the liquidation of a systemically important financial company that is failing, using money provided by a special line of credit with the Treasury.

A "special line of credit" with the Treasury seems to me like the mother of all honey pots.