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
The votes have really been rolling in on the financial reform bill in the Senate. So far, there have been 20 roll call votes on the bill -- 4 on ending the initial Republican filibuster of beginning the debate and 16 since on amendments. Of those 16 amendment votes, 9 have been approved and added to the bill. Additionally, six amendments have been adopted without roll calls by voice votes.
Click through to get all the info on the latest amendments adopted and what we can expect to be up for votes next.Read Full Article
Under the financial reform bill that the Senate is currently debating (the Restoring Financial Stability Act of 2010), payday lenders would be subject to new regulations promulgated by the proposed Consumer Financial Protection Bureau to ensure that their services are "fair, transparent, and competitive." Depending on how aggressive the Bureau ends up being, the rules could severely limit the terms under which payday lends could do business.
But while the underlying bill isn't good for the payday loan industry, an amendment being proposed to it from Sen. Kay Hagan [D, NC] could be more damaging. It would ban payday lenders from giving out new loans to customers who have already taken out six payday loans or have been under loan obligations for more than 90 days in the past year.Read Full Article
The first amendment the Senate will vote on tomorrow when they start voting on amendments to the financial reform bill will be one from Sen. Barbara Boxer [D, CA] that seeks to ensure that the government will liquidate failing financial firms rather than bailing them out with taxpayer money. If any amendment is going to get wide bipartisan support, it will be this one.Read Full Article
It's amendment time this week for the Restoring American Financial Stability Act. Banking Committee Chairman and financial reform floor manager Sen. Chris Dodd [D, CT] has set as an end date of May 14 for the bill, meaning that the next two weeks will largely determine how effective Congress's efforts to address the regulatory lapses that lead to the crisis of 2008 and end "to big to fail" will be. Amendments to be voted on will include things like making the big banks smaller, opening the Federal Reserve up to a full audit, and restricting the authority of a new consumer financial protection bureau. We'll be covering it all closely on this blog. For now, let's take a look at what's going to be happening this week over on the other side of the Capitol.Read Full Article
The Senate is getting ready to kick its financial reform debate into high gear next week when they start voting on amendments on all kinds of issues form both parties. So far, the Obama Administration has remained quiet on their support or opposition for specific amendments, but with one exception -- they are opposing a bipartisan amendment to open up the Federal Reserve to a full Government Accountability Office Audit.Read Full Article
One of the best ways for a corporation to affect government policy is to hire lobbyists with personal connections to the people they will be lobbying. Not surprisingly, this is one of the technique the big financial companies have been using to fight financial reform legislation. Last year, 71% of the lobbyists hired by the six biggest bank-holding companies were former government officials, the Sunlight Foundation's Paul Blumenthal reports.Read Full Article
After being forced by Democrats to go down on record against debating financial reform three times in three days, the Republicans are ready to relent and let the debate begin. The Hill reports:
Read Full Article
Senate Republicans say that Democrats have made important concessions on a Wall Street reform bill, paving the way for debate to finally begin in the upper chamber.
McConnell said that Democrats have agreed to close “loopholes” in a provision setting up the fund that would have allowed federal officials to draw on taxpayer dollars to wind down a troubled institution.
UPDATE: The Republicans have finally relented. They are going to let a unaimous consent agreement go through and proceed to an up or down vote on whether or not to begin debate.
Senate Democrats are planning an all-night debate on debating financial reform legislation -- the Restoring American Financial Stability Act of 2010.Read Full Article
If the pre-funded "orderly liquidation fund" is dropped, the financial reform bill will increase the deficit, not reduce it. According to This morning's Congress Daily ($), Banking Committee Chairman Sen. Christopher Dodd [D, CT] and Ranking Member Sen. Richard Shelby [R, AL] are close to an agreement on dropping the fund, which Republicans have been attacking as a "sluch fund" that "guarantees" future bailouts. In reality, the fund would be used to pay for liquidating (a.k.a. killing) failing mega-banks, not bailing them out.Read Full Article
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. Ben Nelson [D, NE] surprised just about everyone when he voted "no" Monday evening on beginning debate of the Democrats' financial reform bill. Immediately, speculation began circulating that he voted against the bill to curry favor with legendary investor Warren Buffet, a constituent, who had a regulatory exemption he supported for existing derivative contracts removed from the bill just one day prior.
The jury's still out on that. Nelson hasn't admitted to protecting Warren Buffet's interests. Instead, he issued a confounding statement on his vote that begins like this:Read Full Article
As expected, Senate Republicans have successfully sustained their filibuster of debating of the Democrats' financial reform bill, the Restoring American Financial Stability Act of 2010. They stuck together and even one over one Democrat tonight on a motion "to invoke cloture on the motion to proceed" -- or ending debate on whether or not to begin debate the bill itself -- which required 60 votes for approval. It was rejected 57-41. Moderate Dem Sen. Ben Nelson [D, NE] sided with the Republicans, and Majority Leader Sen. Harry Reid [D, NV] voted against the bill in order to preserve his right to bring the bill back to the floor again for another vote in the future.
But the Democrats aren't giving up. Here's what happens next.Read Full Article
The Republicans' claims that the $50 billion "orderly liquidation fund" in the Restoring American Financial Security Act would "guarantee bailouts" have been pretty thoroughly debunked at this point, but I'm reading through the comments on the OpenCongress bill page and there still seems to be some confusion. For example, the highest rated comment right now is an attempt to fight back against the Republican bailout claim, but it still gets it a little wrong. "My understanding is there is a fund, funded by the banks themselves to bailout the large banks. So it doesn't impact taxes and it just means they have to bail themselves out not the government," the commenter writes.
That's not quite right. There is a fund in the bill (the "orderly liquidation fund") that would be funded by the big banks in order to keep taxpayers from being on the hook if they fail, but the fund would be used to put failing banks to death, not to bail them out. With bailouts, banks get rescued by the government and survive. Under this bill, failing banks would be executed by the government. The orderly liquidation fund would provide the working capitol the F.D.I.C. would need to carry out the complicated process of winding down big, failing banks.Read Full Article
Sen. Bernie Sanders [I, VT] yesterday forced a vote on an amendment on breaking up the big banks in the Budget Committee mark-up of the 2011 budget resolution. The amendment didn't pass, but it came closer than I think even Sanders expected. It was rejected on a 12-10, bipartisan vote, which Sanders in a press release called "a strong signal of the growing momentum behind proposals to dismantle financial institutions that dominate the U.S. economy."Read Full Article