Having won over Sen. Scott Brown [R, MA] and having Sen. Arlen Specter [D, PA] back in the chamber to place his vote, the Democrats today found 60 votes and passed cloture on their financial reform bill. That means that a final vote on the bill requiring a simple majority of 51 votes must take place within the next 30 hours.
The bill, called the Restoring American Financial Stability Act of 2010, attempts to fix regulations of derivatives, create new consumer protections for financial products, and set up an orderly liquidation process for winding down failing systemically risky financial institutions to avoid future bailouts, and much more. A summary of the bill as filed (without the dozens of floor amendments that were added) can be found here (pdf).Read Full Article Comments (6)
As I reported yesterday, Senate Democrats lost a big procedural vote to wrap up the financial reform debate and move to passage of the bill because two of their own -- Sen. Maria Cantwell [D, WA] and Sen. Russ Feingold [D, WI] -- wanted to hold out and try to strengthen it. I said yesterday that the two were probably hoping to get a vote on an amendment they are co-sponsoring to reinstate the old Glass-Steagall Act firewall between commercial and investment banks. I was wrong. Cantwell's office today released a statement explaining why she voted no, and it's all about improving the bill's derivatives section:Read Full Article Comments (1)
As expected, Senate Majority Leader Harry Reid [D, NV]has filed for cloture on the financial reform bill, setting up the possibility of a Wednesday vote on ending the debate and forcing an up-or-down vote on passage.
For financial reform advocates, this is mixed news. On the one hand, the bill that Reid is filing cloture on is stronger than what anyone had really expected the Senate to produce. Blanche Lincoln's tough derivatives language is still mostly in tact, strengthening amendments regarding debit fees, ratings agencies and auditing the Fed have been adopted, and every attempt to weaken the bill so far has been beaten back. On the other hand, some of the most important strengthening amendments haven't been voted on yet and may not get voted on if cloture is approved on Wednesday.Read Full Article Comments (1)