by Michael Muskal
Senate leaders today began sparring over the financial reform bill, setting the tone for what is expected to be weeks of debate on the lawmakers' next pitched battle.
Majority Leader Harry Reid, of Nevada, urged Republicans to allow the financial reform bill to come to the Senate floor, where both parties can offer amendments. He spoke after Minority Leader Mitch McConnell, of Kentucky, said he was pleased that bipartisan talks have resumed over some of the bill's contested provisions.
The leaders' exchange was indicative of the political problems surrounding the bill.
Democrats need at least one Republican vote to bring the bill to the floor and to ensure that a GOP filibuster can be broken. In this midterm election year, neither party wants to be on the wrong side of a populist issue which provides more fuel for some sort of bipartisan approach.
Speaking at the start of the morning Senate sessions, Reid urged Republicans to return to the days when legislation was debated on the floor and whoever had the most votes would carry the issue. Then, in a plea for any Republican to split off and help bring the bill to the floor, Reid insisted that Democrats were open to change.
"The bill we'll bring to the floor is the result of months of bipartisan meetings, investigations, negotiations and consensus. But our Republican colleagues insist on pretending this is a partisan effort," Reid said.
"We need to make everyone understand that this is not a final product," Reid said. "Let's bring this matter to the floor and offer amendments, the way it used to be. Whoever gets the most votes wins."
One of the key issues is a $50 billion industry-supported fund that would go to pay for problems for large institutions. Republicans insist this fund will encourage bailouts, while Democrats note the money is not taxpayer funds and would go to pay for the pieces of failed institutions rather than saving them.
"It is important for the country and taxpayer that we get this right, that we put them before politics," McConnell said on the floor. "That's why I was disappointed to read that Senate Democrats are refusing to drop the $50 billion bailout fund--a fund that the Treasury Secretary himself opposes--unless Republicans pay a price for taking it out.
"This is exactly what Americans don't like about Washington: when one side tries to 'get' something for doing what they should have done in the first place. If everyone agrees it should be dropped, then it should be dropped. And if Senate Democrats think it should stay, then they should explain why they think the Treasury Secretary was wrong when he said that this bailout fund 'would create expectations that the government would step in to protect shareholders and creditors from losses.'
"Both sides have expressed a willingness to make the changes needed to ensure without any doubt that."
Democrats are hoping to bring the bill to the floor on Thursday, when President Barack Obama is scheduled to address the issue in a New York City speech, blocks from Wall Street.
Comments
This is a first positive step of passing meaning Financial Reform if Majority Leader Harry Reid is really serious. But if only Harry Reid can be believed. Pelosi and Reid plus the President (who talks a good game) do not have a good record at bi-partisanship Both sides are not that far apart on financial reform and need to sit down and make a serious effort to put together a good bill that will be effective. To both the Democrats and Republicans, most of the the country, except the extreme Left and Right, wants positive action. Stop the political games and accomplish something. Many of us out here are watching and will take it out on Both Parties in November if the partisan political games continue.
Posted by: Depot- Jim | April 20, 2010 11:58 AM
Less than 2 weeks ago Republican senators McConnell and Cornyn met with Wall Street honchos and told them that they'll do everything in their power to prevent any reforms on financial markets don't become law, while asking for replenishment of their PAC campaign bank accounts.
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Everything McConnell says goes against the American taxpayer and for more partisan politics.
Posted by: BC | April 20, 2010 12:09 PM
The Party of Yes vs the Party of No Speaks! 100% Loan to Value, no documentation works for me! It was the END GAME, the YOU LIE game! Our Consumer Protection Agency will "protect and serve." Stop the press! Stop the press! The GOP Post Bush Home Ownership Alliance Theft by Deception is too big to fail! Get CITI! Get Bear Stearns on the line! They all "Qualified." They all just checked the "Box." 100% NINA No Income No Assets works for me! It was the GOP done deal or no deal! It was always about "civil rights." It was always about theft by GOP "guidelines" unto you! You qualified! We didn't! Investors didn't! Mortgage Companies didn't! We need a vote! We need REFORM, not stall baby stall! We need a vote! We all checked the box! We all "qualified" requalified, and attempting re-qualify for what we already qualified for! We need a vote! Because if it smells like
GOP "Schmidt" then it is Schmidt!
Posted by: Roger Morris | April 20, 2010 12:52 PM
Less than 2 weeks ago Republican senators McConnell and Cornyn met with Wall Street honchos and told them that they'll do everything in their power to prevent any reforms on financial markets don't become law, while asking for replenishment of their PAC campaign bank accounts.
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Everything McConnell says goes against the American taxpayer and for more partisan politics.
Posted by: BC | April 20, 2010 12:09 PM
2 things---
Are you saying it's not OK for Republicans to meet with large investment bankers and money managers but it is ok for professor Obma's chief of staff to do the same?
And ...
you have a problem with Reps asking for PAC money - but ignore the fact that at least 3 large banks ( including Sachs) were in the top 20 of Obama's campaign contributors?
http://www.washingtonpost.com/wp-dyn/content/article/2010/04/19/AR2010041904050.html
Posted by: heartburn | April 20, 2010 2:16 PM
Posted by: heartburn | April 20, 2010 2:16 PM
;
Hate to bring facts and perspective but the Obama Administration is putting the full weight of the SEC attack dogs on Sachs. So it don't mean jack squat if they gave Obama money, they will be punished. The GOP wants to reward them and others by not strengthening the rules.
Posted by: Saluki Slayer | April 20, 2010 2:55 PM
Hate to bring facts and perspective but the Obama Administration is putting the full weight of the SEC attack dogs on Sachs. So it don't mean jack squat if they gave Obama money, they will be punished. The GOP wants to reward them and others by not strengthening the rules.
Posted by: Saluki Slayer | April 20, 2010 2:55 PM
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Slayer- You have a very good point...IMHO the admin got what it needed from Sachs ( cash to get elected) and is now displaying its typical cynical, political side and has decided to go after Sachs now that they have more to gain by a public investigation of Sachs.
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I could be wrong but consider these facts and this context;
Timing is everything in a good propagan..I mean political campaign. Could you imagine the good fortune of Obamas political team to have the news of an SEC investigation of Sachs go public, while at the EXACT same time that they have an internet campaign, directing searches for info on the SEC investigation of Sachs to WH political site already loaded and ready to go? Imagine the luck!
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More facts and context-
The WH political org actually had the dumb luck and timing to know to go out and actually purchase the Google keyword search “Goldman Sachs SEC”! It must be clairvoyance- because there is no way someone as good and well meaning as Obama would ever think of threatening a private company with the harrassment of a frivolous investigation for political gain...right?
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The good news is that now, all of us thankless people that take a little initiative to try to find out how our wonderful leader is abusi.. I mean harnessing the forces of government to defend us from all of those big bad banks that are the causes of all of our problems- will be directed to the political site so we can be properly indoctrin.. I mean informed of the goodness and light that comes from our leader!
I am on board-another helping of hope and change please!
Posted by: heartburn | April 20, 2010 4:35 PM
Will this legislation cure what illed the largest recipient of TARP funds - Freddie and Fannie? Not even close.
http://online.wsj.com/article/SB10001424052748704671904575193910683111250.html
Posted by: Terry | April 20, 2010 7:11 PM
Sounds a lot like what the GOP was saying about their bills but, the libs said no only Obamacare. The next 6 months will be fun.
Posted by: Crooks_In_DC | April 20, 2010 8:59 PM
Another must read about the origination of the mortgage crisis:
http://www.villagevoice.com/2008-08-05/news/how-andrew-cuomo-gave-birth-to-the-crisis-at-fannie-mae-and-freddie-mac/
Posted by: Terry | April 20, 2010 10:05 PM
Freddie and Fannie Speak! Fannie and Freddie Shoot Straight! Oh where oh where did our "SURPLUS" go oh where oh where did it go! Choctow Indian Casinos! Jack, the Jack Abrahmoff! Oh where oh where did the 3.4 billion dollar 2003 surplus go? Cheneyville! Crawford Ranch! The mean streets of Bahgdad! Oh where oh were did it go! Well 9 billion dollars lost on a two points within Iraq and Iraq! Oh where oh where did it go! Obamacare! Hmmmmm he was still in "EMBROYNIC" Arizona "Russell Pearce" Trespassing in the GOP First YOU LIE, YOU LIE First Degree! Because by striking "ATTORNEY GENERAL" while in the Consultation with State, Local and Governors, Mayors, and State Legislatures, by inserting State Federalist Preambles. Oh where oh where did RESPA go! Hmmmmmm! You checked the box! You checked the BEAR STEARNS J to the P and the CI to the IT BOX! Oh where oh where did it go! It's like the GOP PELICAN BUSH/CHENEY BRIEF! It;s like the Protect America ACT! Just not you! Just them GOP ACT! Oh where oh where did every commentary money go go go go! Oh where did it go? God Wants World Cup Not False Prophets! G to the O to the Theft by Deception Axis of Evil P! Archives don't lie! At least the ones you saved.! The GOP Pelican Brief Found! The GOP Pelican Brief Found! It is always about "civil rights."
Posted by: Roger Morris | April 20, 2010 10:21 PM
The financial "reform" bill being pushed by Obama, Reid, Dodd and the other Dems guarantees unlimited bailouts for banks by allowing the Executive branch a blank check. This will only encourage banks to engage in even more risky behavior that before. This is a recipe for disaster. The big banks take big risks, lose big money then are rewarded by Obama with huge bailouts all paid for by taxpayers. Is it any surprise that Obama's #1 campaign donor was Goldman Sachs?
Posted by: Karen Hoffman | April 20, 2010 10:54 PM