–Senate Banking Chief Spared Gruelling Mark-Up By Senate Republicans
–Host of Tough Issues Must Be Resolved in Private Negotiations
–Sen. Dodd Expected To Bring Regulatory Reform Bill To Floor In April
–House Speaker Nancy Pelosi Describes Effort As ‘Wall Street Reform’
By John Shaw
WASHINGTON (MNI) – When most textbooks describe the role of
Congress’s committees, they describe them as the place where lawmakers
who have developed a substantive expertise work carefully to craft
detailed pieces of legislation.
This notion of the congressional committee as the venue for
lawmakers to delve into the arcana of public policy was in evidence last
year when Sen. Chris Dodd, serving as the acting chairman of the Senate
Health Committee, presided over a nearly month-long mark up to craft a
health care reform bill.
During hour after laborious hour, Dodd and his panel considered and
debated hundreds of amendments and ultimately passed a sweeping health
care reform bill in mid-July of 2009.
About a week ago, Dodd in his capacity as the chairman of the
Senate Banking Committee, was preparing for a long, contentious mark up
of his financial regulatory reform bill. More than 400 amendments had
been filed to his bill, many by Republicans who said they were
displeased by major elements of the Dodd bill. Several had said that it
would take more than a week to consider a bill as complex and
consequential as the one Dodd had drafted.
But then Senate Republicans on the Banking panel surprised Dodd and
many others by allowing Dodd’s bill to pass with almost no debate and no
amendments.
After less than thirty minutes of discussion, Dodd’s bill was
approved on a party-line 13 to 10 vote. All Democrats supported the bill
and all Republicans opposed it.
Just before the vote, Sen. Richard Shelby, the ranking Republican
on the Banking Committee, said that he continued to have “a number of
serious concerns” about Dodd’s bill. But he spoke in strikingly
conciliatory terms.
“I remain optimistic that we can, over time, reach an agreement
that will garner broad bipartisan support. I just don’t believe we are
there yet,” Shelby said.
He vowed to work with Dodd and others as the bill moved toward the
Senate floor in hopes of reaching a “broad consensus.”
“If we place policy ahead of politics, we can, and I believe will,
reach an agreement that will not only attract significant support, but
will also be good for the American taxpayer, our financial system and
our economy,” Shelby said.
Shelby said a host of issues need additional work: ending ‘Too Big
To Fail,’ systemic risk oversight, providing for greater consumer
protections without creating new problems for safety and soundness
regulation, and crafting regulations for over-the-counter derivatives
that allow firms to use swaps to hedge “legitimate business interests.”
In a speech on the Senate floor last Friday, Dodd said he is
gearing up for a “full throated” Senate debate on regulatory reform in
April.
Dodd said he is still hopeful the Senate will pass a regulatory
bill this spring and the House and Senate can craft and pass a
compromise bill that President Obama can sign this year.
“This is the single largest reform of financial services since the
thirties. It is long overdue. We must not fail in our obligation to meet
the challenges. If we leave here failing to do this, we will expose our
economy. And the American people will never, ever write a check as they
did in the fall of 2008. We can forget about that,” Dodd said.
A spokeswoman for Dodd said the discussions at the staff level will
take place over the two week spring recess. She did not know if the
members of the Banking Committee will be in direct contact over this
period, but added that Dodd is ready to “work with all members” to
address issues that are in contention.
Dodd’s legislation establishes a new independent Consumer
Protection Bureau at the Federal Reserve Board, creates a process to
liquidate failed financial firms,” sets up a council of regulators to
oversee systemic risk in the economy, establishes a regulatory structure
for over-the-counter derivatives, requires hedge funds that manage over
$100 million to register with the SEC and creates a new office within
Treasury to monitor the insurance industry.
Under Dodd’s bill, the Federal Reserve would oversee bank holding
companies with assets over $50 billion. Dodd’s bill also would require
the president of the New York Federal Reserve Board to be appointed by
the President of the U.S. and confirmed by the Senate.
Senate Majority Leader Harry Reid has said he is putting financial
regulatory reform legislation on the front-burner, adding he wants the
Senate to pass a regulatory reform bill by the end of May.
Obama has said that financial regulatory reform is one of his chief
goals for the rest of this legislative session.
And House Speaker Nancy Pelosi, in her final briefing before
Congress’s spring recess, made it clear that Democrats are eager to
spend the spring and summer working on financial regulatory reform —
which she repeatedly called “Wall Street reform.”
Democrats, she said, want to work with Republicans on bipartisan
regulatory legislation but so far Republicans have been more focused on
defending Wall Street than supporting reforms.
“They don’t want to regulate Wall Street. We do,” Pelosi said,
adding “we can’t have the status quo on Wall Street.”
“This regulatory reform is essential … . We must have regulatory
reform so this (the financial crisis) doesn’t happen again,” she said.
** Market News International Washington Bureau: (202) 371-2121 **
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