Dems celebrate, but cautiously
April 29, 2010 | federal legislation, industry | Comments (0)Doesn’t sound like much fun. From the story:
Given the recent news, [this press conference] is being held in a mood of cautious celebration,” {Senator} Whitehouse said. “I think it’s a positive turn of events.”
Let the carve outs begin
April 29, 2010 | alternatives, federal legislation, industry | Comments (0)From The Hill:
A major source of revenue for big banks may ultimately be exempt from new regulations under financial reform legislation in Congress.
Lawmakers are looking to crack down on the multitrillion-dollar derivatives market that some blame for worsening the financial crisis.
But they appear on the verge of handing power to the Treasury Department to decide whether to exempt foreign exchange derivatives from tougher governmental oversight.
Sausage making is hard to watch.
We forgot about these guys
April 29, 2010 | federal legislation, industry | Comments (0)House GOP doesn’t like what’s going on in the Senate. From Politico:
House Republicans are unlikely to jump on board with a financial reform bill even if a controversial $50 billion bank liquidation fund is removed, making it clear that even if a Senate compromise emerges, the vote will still be partisan in the House.
“Essentially, either you believe in ‘too big to fail’ or you don’t,” said Rep. Jeb Hensarling (R-Texas). “It’s like being a little bit pregnant.”
Three members of the conservative Republican Study Committee emphasized to reporters at a half-hour morning session that they think any reform should deal with the practices that led to excessive lending and the federal takeover of Fannie Mae and Freddie Mac.
New Payday Pundit record
April 28, 2010 | Uncategorized | Comments (0)Twenty posts today. Tomorrow may be less busy. I’m hearing that the Senate will pass the “motion to proceed” vote and do a lot of talking. Key votes on amendments will probably be next week.
Thanks to everyone for checking in.
Stop the CFPA
April 28, 2010 | federal legislation, industry | Comments (0)Check out the new ads.
A good summation
April 28, 2010 | federal legislation, industry | Comments (0)As they move forward, Democrats still need to resolve internal differences over a section of the bill regulating derivatives, the risky financial instruments that contributed to the economic crisis. The bill goes farther than the administration and the Federal Reserve wants in requiring financial firms to spin off their derivatives trading operations – regulation that could mean loss of billions of dollars in revenue for big Wall Street firms.
By striking the $50 billion fund, senators will need to find a way to make up for that lost revenue to ensure the bill is deficit neutral.
Reid and Dodd have also promised a more free-flowing amendment process than was allowed during the health care reform debate. Both Democrats and Republicans are preparing hundreds of amendments, some of which could be viewed as poison pills that threaten passage. Progressives are expected to propose a series of populist initiatives that could prove politically-difficult to defeat.
No vote tonight
April 28, 2010 | federal legislation, industry | Comments (0)There is a bipartisan decision to hold the next “motion to proceed” vote tomorrow.
Vote around 5:30-6:30
April 28, 2010 | federal legislation, industry | Comments (0)We’ll let you know.
Update
April 28, 2010 | federal legislation, industry | Comments (0)Reid may try another vote tonight and may, in fact, get the 60 he needs to proceed. At that point, Senators will start announcing amendments. Then the tough works begins. There will be a rate cap amendment or two and Senator Hagan from North Carolina will offer an amendment to limit payday loans to six per year.
If you haven’t called your Senator, what are you waiting for? The Capitol switchboard is 202-224-3121.
Impasse!
April 28, 2010 | federal legislation, industry | Comments (0)From the statement of Senator Richard Shelby, the chief Republican negotiator on the financial reform bill:
“I thank Leader McConnell and my Republican colleagues for providing an opportunity for my negotiations with Chairman Dodd to run their course. I believe we owed the American people our best effort to make whatever changes we could to this incredibly complex piece of legislation because it will have wide ranging implications for our economy. Chairman Dodd has assured me that he will address a number of concerns I have expressed with respect to ending bailouts. We have been unable, however, to make any meaningful progress on other important components of the legislation. It is now my belief that further negotiations will not produce additional results.
“This bill still contains a sprawling new consumer protection bureau that will find and force its way into facets of our economy that had nothing to do with the housing crisis. This massive new bureaucracy would have unchecked authority to regulate whatever it wants, whenever it wants, however it wants. I am aware of no other arm of the federal government this powerful, yet so unaccountable. In my negotiations with Chairman Dodd, I have consistently supported strengthening consumer protections. I have also advocated for a sensible and meaningful role for safety and soundness regulators in this new agency’s operations. Unfortunately, despite my demonstrated willingness to propose compromise solutions, this sensible step has proved to be a bridge too far.
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Now that my negotiations with Chairman Dodd have reached an impasse, I thank my Republican colleagues for their support and defer to their individual judgments on whether the Senate begins a floor debate on this bill.”
Dodd will probably now try to make deals with a few moderate Republicans.
