Financial Reform: Democrats Try Again for Cloture

Published April 27, 2010, 2:09 pm, CST

by Diane W. Collins


Sen. Judd Gregg 4/27

Financial Reform Legislation

The Democrats will reintroduce S.3217, Restoring American Financial Stability Act of 2010 which failed to move forward in the Senate yesterday. Republicans and Democrats have been meeting off floor during the day to attempt to reach agreement on the "ambiguities" of the bill's language which Republicans do not feel addresses "to big to fail," does not include Fannie and Freddie, introduces an unfettered Consumer Protection Agency (as if we really need another Federal agency), and plays havoc with the regulation of the derivatives market. Further, the bill would place greater restrictions on Community banks and "angel" investors harming the efforts of small businesses.


Yesterday, Sen. Judd Gregg (R-NH) gave an exceptional description of the derivatives market and what the Wall Street Transparency and Accountability Act passed out of the Senate Agriculture Committee and expected to be attached to Restoring American Financial Stability Act of 2010 would do to the derivatives marketplace. Today, Sen. Judd set forth the Republican position on the Democrats Financial Reform legislation as we return to the Senate floor.


Should Financial Regulation fail to move forward yet again tonight, it is believed President Obama will continue the Democratic PR tactic painting Republicans as Wall Street supporters during his townhall meeting in Ottumwa, Iowa. Disagreeing with the Administration brings a tirade of accusations that upon further examination do not play out. The main stream media by furthering these misconceptions is not doing its job. Republicans want financial reform. This bill does not produce financial reform that addresses the causes of the 2008 financial crisis. Instead the Democrats bill uses that financial crisis to expand Big Government.


In addition, as Sen. Jon Kyl (R-AZ), Senate Minority Whip has mentioned there is no assurance that any amendments to the Democrats bill as presented will be allowed to be brought to the floor. Once Sen. Reid has his 60 votes Republicans believe he will call for "cloture" which would end any further debate. This is the reason for requiring negotiations off the Senate floor prior to bringing the bill. Republicans are justified in this belief. All one has to do is look at the way Health Care Reform was handled.


More at 4:30 pm, EST as the vote to proceed continues.


The vote to proceed has been called with 60 votes required to succeed. Sen. Ben Nelson (D-NE) continues to vote no. The vote fails 57 in favor, 41 against. Sen. Dianne Feinstein (D-CA) immediately began to malign the Republicans for not "allowing" debate. Republicans want debate. They just don't trust the Democrats on the Senate floor to conduct that debate. With the failure of the vote to proceed, negotiations continue off floor.





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