Finance
Senate Debates Financial Reform - Derivatives Amendment
Published April 29, 2010, 5:11 pm, CST
by Diane W. Collins
dcollins@marketingweb.com
Sen Chris Dodd's bill, S.3217, Restoring American Financial Stability Act of 2010 was presented on the Senate floor today for debate and amendments. The first amendment introduced dealt with derivatives, as expected and was offered by Sens. Chris Dodd (D-CT) and Blanche Lincoln (D-AR ) as the Dodd-Lincoln Substitute Amendment. It incorporates the Wall Street Transparency and Accountability Act passed out of the Senate Agriculture Committee chaired by Sen. Lincoln with Dodd's bill.
The background surrounding the Wall Street Act is interesting. Sen. Saxby Chambliss (R-GA), Ranking Member of the Senate Agriculture Committee had worked in bipartisan fashion with Sen. Lincoln (D-AR) for months when Sen. Blanche Lincoln (D-AR), Chairman of the committee submitted a last minute substitute for the bipartisan base bill during her committee's mark up session. Many committee members hadn't seen Sen. Lincoln's substitute prior to the mark up session. Sen. Chambliss offered an amendment to the Wall Street Transparency and Accountability Act as offered by Sen. Lincoln in the Senate Agriculture Committee that sought to resolve Republican concerns. It failed in a vote of 9 to 12. The need to rush to the floor or "running out of time" was being heralded by Sen. Blanche Lincoln (D-AR), during the mark up session. The approach is becoming the signature fabric of the Obama regime. The Wall Street Transparency and Accountability Act was reported out of committee to the Senate floor by a vote of 13 to 8.
IMPORTANT LINKS:
The Wall Street Transparency and Accountability Act
Full Text of Bill (pdf)
Section-by-Section Analysis (pdf)
One page Summary (pdf)
Today, as mentioned Sens. Dodd and Lincoln offered an amendment that would incorporate the Wall Street Transparency and Accountability Act into Dodd's bill S.3217, Restoring American Financial Stability Act of 2010. Sen. Judd Gregg, (R-NH) and Sen. Saxby Chambliss (R-GA) offered why Republicans feel the language of the Wall St. Act is actually "punitive" painting any organization that deals in derivatives with the same, broad brush.
As Sen. Gregg states, "derivatives are a world wide instrument..." this broad brush approach will force business over seas. America will lose. He warned of far reaching implications that would affect consumers who purchase any item with an installment plan exceeding four payments. But, according to Sen. Gregg, "It doesn't have to be this way." He asserts Congress could fix the issues that contributed to the 2008 Economic Crisis without punishing entities who in reality were not culpable but whom this bill would penalize. He offers his way forward in the video to your right.
Further reading: