UPDATE: The bill has officially been passed. It now gets sent to President Obama, who is expected to sign it into law this afternoon. Original post below...
As expected, the Senate this afternoon voted 60-38 to end debate on the landmark Dodd-Frank Wall Street Reform and Consumer Protections Act. The vote on final passage of the bill, whiconly requires a simply majority of 51 "ayes," is expected later this afternoon.
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Expect to see this headline over and over. In lieu of a breakthrough bipartisan deal, the Democrats are planning to hold procedural votes every day on ending a Republican filibuster of debating the Restoring American Financial Stability Act of 2010. They're not planning on stopping until the Republicans give up or a deal is struck.
For the second night in a row, the Senate voted 57-41 against beginning debate. Sixty votes were needed for passage. Sen. Ben Nelson [D, NE] broke ranks and voted with the GOP again (apparently he still hasn't had time to read the bill) and Majority Leader Sen. Harry Reid [D, NV] voted against the motion again in order to preserve his right to bring it up for another vote under Senate rules.Read Full Article
Sen. Christopher Dodd [D, CT] unveiled his long-awaited financial reform bill this afternoon, calling it the most sweeping reform of Wall Street since the 1930s. It's a 1,336-page document, which you can read in full here (PDF). But in case your not in the mood right now to dive into the details of derivatives reform, consumer financial protection and systemic risk regulation in full legalese, I've converted the 11-page summary from Dodd's office into HTML and posted it here. This is no substitue for a thorough, independent analysis, but it at least gives you a sense of the bill's scope -- what's in it and what isn't.Read Full Article
Some of the most absurd lending and borrowing happens in the payday loan industry. According to the Center for Responsible Lending (.pdf), the average payday loan borrower pays $800 for each $325 they borrow. That's an absolutely absurd interest rate, but according to the New York Times, the senators who are designing financial reform legislation are going to include a special carve-out so the industry can keep on dealing in these abusive loans:Read Full Article
Republicans and a handful of pro-business Democrats are standing in opposition to an independent consumer financial watchdog agency – a central pillar of President Obama's financial regulation agendaRead Full Article
The retiring Senate Banking Committee Chairman Chris Dodd [D, CT] is prepared to cut the Consumer Financial Protection Agency from the regulatory reform bill in order to win Republican support.Read Full Article
"In a potential setback for the White House, committee members were said to be talking about reducing the proposed agency's status, possibly making it instead a division of a new systemic risk regulator or a new super-cop for banks," Reuters reports.Read Full Article
One year after the biggest economic collapse since the Great Depression, Congress is still debating new financial regulations to protect consumers and prevent risk-taking in the financial sector. The House Committee on Financial Services is currently undertaking the important first step of writing, amending and voting on some of the pieces of the long-proposed financial regulatory reform.Read Full Article