Stop the presses!
April 29, 2010 | federal legislation, industry | Comments (0)The Senate “motion to proceed” vote is delayed until next week. Reid doesn’t have the votes because there are two different Democratic versions of a derivatives bill. They need to work out which one to offer as an amendment or develop a compromise amendment.
Elizabeth Warren’s talking points
April 29, 2010 | federal legislation, industry | Comments (0)She fed them to the anti-business house organ, Shahien Nasiripour, at the Huffington Post. Although, it feels almost gratuitous to call a reporter at the Huffington Post “anti-business.” You wouldn’t get hired if you believed in capitalism.
They want 100% or nothing
April 29, 2010 | federal legislation, industry | Comments (0)Jane Bryant Quinn’s latest screed:
The Administration wants an independent Consumer Financial Protection Agency with its own budget and authority to act. The Republicans want a six-person council with no independence and little authority. Three of the council’s seats would be held by the government — the chairs of the Federal Reserve and the Federal Deposit Insurance Corporation, plus the Comptroller of the Currency. Historically, none of these regulators has flexed its muscles on behalf of consumer care.
All or nothing. The faith that some people have in government bureacracies is astonishing.
Senate convenes at 12:15
April 29, 2010 | federal legislation, industry | Comments (0)As I said earlier, I don’t expect too much excitement today. The amendment process should start next week.
This is important
April 29, 2010 | federal legislation, industry | Comments (2)Everyone seems to be in agreement that there will be a a 60-vote threshhold to pass amendments. That’s good bacause some nasty amendments are coming–rate caps, fequency limitations and who knows what else. From the story:
“It is not just Republicans who are going to offer amendments,” said Sen. Bob Corker, a Tennessee Republican who negotiated with Dodd on portions of the bill. “This may be a real debate, which would shock America.”
How the debate unfolds will determine whether the legislation achieves significant bipartisan support. Democrats still need 60 votes to get past procedural obstacles, a number they can’t reach without at least one Republican on their side.
The four sticking points
April 29, 2010 | federal legislation, industry | Comments (0)Summed up by the Christian Science Monitor: Here’s the one we care about:
Consumer protection. Republicans say they’re wary of over-regulating an industry that has brought ATMs and money-market funds, not just a boom in toxic mortgage products. Mr. Obama is among Democrats arguing that more oversight of consumer protection will help industry competition rather than harm it.
Democrats are backing the idea of a new agency, rather than having the Federal Reserve wear multiple hats – keeping tabs on both the financial health of banks and issues like truth in advertising for consumers. Republicans may try to limit the powers of the new agency.
That’s one way of looking at it
April 29, 2010 | federal legislation, industry | Comments (0)Times “Swampland” blog has the headline, “Republicans Cave on Financial Reform.”
Senate investigating wrong target?
April 29, 2010 | Center for Responsible Lending, federal legislation, industry | Comments (1)Yesterday, from Big Government:
After all, it wasn’t Goldman that passed the Community Reinvestment Act that forced banks to make loans to people who could never pay them back. It wasn’t Goldman that created and supported Fannie Mae and Freddie Mac. And it wasn’t Goldman that drove interest rates down to a below market level to cause a housing rush not seen since gold was found in them thar’ hills in the mid-1800s.
But if Senators were really interested in finding out the cause of the housing bubble, they would call one Eric Stein to the dais.
Mr. Stein is currently that Deputy Secretary of Treasury for consumer protection and is likely to head the vastly powerful Consumer Bureaucracy currently being pushed by big banks and Wall Street. But prior to his appointment to Treasury, Mr. Stein the bag man for the Center for Responsible Lending and its many Self Help subsidiaries, was singly responsible for more bad loans than all Goldman employees together. Working with billionaire con-man John Paulson, Stein lobbied to pass the laws at the root of the crisis and pressured banks to make bad loans that caused their portfolios to collapse when the economy turned. They were the Bonnie and Clyde of the subprime mortgage world.
It’s time for a hearing focusing on the real cause of the housing bubble. It’s time to call Eric Stein up to the Hill for questioning under oath.
Let the carve outs begin II
April 29, 2010 | federal legislation, industry | Comments (0)Senator Ben Nelson wants a carve out for billionaire Warren Buffet:
“On Monday, the derivatives bill was altered to remove part of the new language related to margin requirements. Furthermore, I’d heard from Senator Dodd and others that there were ongoing discussions to try to address the continuing concern by Berkshire Hathaway and hundreds of American companies regarding margin requirements.
“I have opposed several cloture motions to proceed to a debate and vote on financial reform. And the Washington gotcha game has kicked into high gear impugning my motives.
“To be absolutely clear, I did not vote no because of Berkshire Hathaway. Nor did the fact that I and my wife have owned Berkshire stock for 30+ years have anything to do with my vote. It has never been an issue. It isn’t now.
Dems will pay political price
April 29, 2010 | federal legislation, industry | Comments (0)So says pollster Frank Luntz in the Huffington Post:
Sen. Dodd has bragged that his legislation will create a new super-regulatory agency like we have not seen before — and with good reason. Every single financial transaction will now be subject to government regulation — from layaway plans to auto loans. Citibank and Goldman Sachs don’t have to worry about that, but Joe’s furniture store and Jane’s used car dealership do.
I’ve said it before, and I’ll say it again: it’s not what you say; it’s what people hear. Democrats believe they have a winning issue in financial reform because it gives them the vehicle to attack Wall Street. Well, they’re right, but only right now.
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Americans want to change the direction of their government, and they will keep replacing incumbents until they get it right.
