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EmailNews From the Swamp: Financial Regulation Bill
Friday, April 30, 2010
After a week of parliamentary motions by Republicans and political mudslinging by Democrats, the Senate has begun debate on Sen. Chris Dodd's financial overhaul bill. Dodd (D-CT), who's hoping to make this his swan song before retiring at the end of this session, drafted the original legislation several weeks ago with a number of provisions meant to put America's financial system firmly under the boot of the federal government.
At first, the bill included a $50 billion bailout fund to rescue failing financial institutions, institutionalizing the "too big to fail" philosophy that has already helped to prevent a full economic recovery. The fund would have been paid for by new taxes and fees on the nation's banks -- fees that would have trickled down to consumers. Now, thanks to Republican pressure, an amendment has been added that calls for the government to shut down failed banks. The $50 billion fund will pay for liquidation.
The bill also calls for the creation of a rash of new federal agencies to further muck up an already badly regulated system, chief among them the Consumer Financial Protection Agency (CFPA). In a bill that stretches some 1,300 pages, the CFPA is outlined vaguely enough to allow it the power to regulate virtually any financial transaction, including but not limited to car loans, check-cashing companies and even department stores with layaway plans.
The Democrats hoped to cash in on public anger over Wall Street (see Goldman Sachs) and ram the bill through the Senate, but the Republicans rallied. The GOP was able to hold its caucus together and draw in Ben Nelson (D-NE) to defeat three cloture votes to move the bill to the floor. Minority Leader Mitch McConnell (R-KY) stated that if the bill was truly going to be bipartisan, then serious changes were needed.
Majority Leader Harry Reid (D-NV) stuck to his "eat-the-rich" playbook, claiming, "Republicans have made it clear whose side they're on: Big banks on Wall Street, not middle-class families." This idea that financial reform has to be a zero-sum game indicates that Reid and his caucus profoundly misunderstand (intentionally?) how the American financial system actually works. A sound bill must be free-market oriented, not just a punitive robbery of Wall Street.
Furthermore, the charge that it's only Republicans who are in bed with Wall Street is pure hogwash. In fact, in the last two election cycles, political contributions from the big financial firms that Democrats are demonizing gave more money to them than to Republicans. Democrats edged out the GOP in 2006 in total dollars and received $21 million more than Republicans in 2008. Barack Obama alone received $15 million from the financial industry. This year's cycle has trended similarly, with the Democrats besting Republicans by $8 million through March, but that's likely to change, particularly after the very public (and very foul-mouthed) senatorial grilling that financial giant Goldman Sachs received on Tuesday.
Reid wasn't about to let a little thing like the $500,000 he's received from the financial sector stop him from casting Republicans as standing in the way of reform. The Republican strategy, however, was meant to force enough changes in the legislation for them to be comfortable with bringing it to the floor for debate. By Wednesday, after closed-door discussions between Dodd and Alabama Sen. Richard Shelby, the Senate Banking Committee's ranking Republican, Republicans voted unanimously to let the bill go to the floor. They will use the debate period to attempt to shape a more common-sense bill that includes true reform rather than the pillaging of the American financial sector that Democrats desire. Good luck.
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Howard Last
No mention in the news that Democrap former governor of NJ and U.S. senator Corzine was the head of Goldman Sachs. I wonder why?
Also this too big too fail crap rears its ugly head again. If this was around in the early 1900's we would still have horse buggy manufacturers and buggy whip factories. And don't forget about kerosene lamp suppliers.
Posted April 30, 2010 at 11:48:50 AM
Ruth Ann Wilson
Since we know that this "bill" was "crafted" by the FOX (Chris Dodd) who has been in charge of the "hen-house" (Fannie and Freddie, Franklin Raines, Barney Franks, etc.), the very "problem" in all of this "financial debacle". The Republicans think, now, they can "cut a deal" with this swindler?????
Mr. Dodd evidently, is "retiring" (in luxury at our expense). But before he goes "into retirement", he will take one more "punch" at our Financial system through this "bogus bill"
He and his buddies should be indicted for all of this "scandal".
This "Financial Reform" is nothing more than this "bunch" trying to find a "scapegoat" for what they did and sanctioned.
For God & Country
Ruth Ann Wilson
\
Posted April 30, 2010 at 3:48:25 PM
Ruth Ann Wilson
Since we know that this "bill" was "crafted" by the FOX (Chris Dodd) who has been in charge of the "hen-house" (Fannie and Freddie, Franklin Raines, Barney Franks, etc.), the very "problem" in all of this "financial debacle". The Republicans think, now, they can "cut a deal" with this swindler?????
Mr. Dodd evidently, is "retiring" (in luxury at our expense). But before he goes "into retirement", he will take one more "punch" at our Financial system through this "bogus bill"
He and his buddies should be indicted for all of this "scandal".
This "Financial Reform" is nothing more than this "bunch" trying to find a "scapegoat" for what they did and sanctioned.
For God & Country
Ruth Ann Wilson
\
Posted April 30, 2010 at 3:48:25 PM
Peni Hamill
We need to ask the Question: Why is evey bill the the Obama congress puts out have to be over 1000 pages? What is hiding this time and what freedoms will we lose this time? And how are they able to write these large bills. Someone else is pulling the strings,so my question is who is doing this?I know the why: MONEY-POWER-GREED!But I would like to know who! I knew something has wrong when 7days after he was in office the stimus bill is writen,gone though committe,voted on both floors of congress in 7days? We need to find out WHO!
Posted April 30, 2010 at 5:41:00 PM
Howard Last
The republicans never learn. They are trying to make a deal with the devil again.
Posted April 30, 2010 at 9:42:33 PM
Jim aite
To respond to Peni Hamill';s question, "Who is pulling the strings?", I suggest she look at George (the Hungarian) Soros and Peter Lewis, the head of Prgressive Insurance. Both these men spent untold millions trying to defeat George Bush. I understand that George Soros, alone, spent $24 million.
Now, since these patriotic(?) gentlemen have spent so much money on Obama, who do you think is "pulling the strings?"
Posted May 1, 2010 at 1:10:18 PM
Anthony Young
Any right minded, informed American knows the finance reform required is Washington, not Wall Street. Greece, that bastion of culture in the Roman Empire, is repeating their ancient history. We are the macrocosm of Greece. We're in just as much, rather, more trouble. Greece is finally endeavoring to cut their entitlements. Now one in three of the population in civil service wants to know where their money went saying it's not fair. This is the ring tone we're going to hear from the left-wing-minded government dependents when Washington finally runs out of other people's money. But Washington doesn't really care for the left or the right, just as long as we're all dependent upon their benevolence with our money. More bread and circuses please.
Posted May 1, 2010 at 1:55:57 PM
bob
Stimulus, bail outs, buy outs, health care, cap and trade,and now finance reform. None have any effect on the ones that put the jokster in the White House. The have nots now out number the workers in this nation and no one buses the workers to the polls to vote.
Posted May 3, 2010 at 3:18:18 AM