Senate Majority Leader Harry Reid has scheduled a vote for 5:30 p.m. on
financial regulatory reform. While the Senate will only be voting on
cloture to open debate, the motion requires 60 votes and thus could be a
crucial test vote to see if Democrats have enough support to pass a reform bill. Formally in the works since the beginning
of the year, financial regulatory reform seeks to bring new accountability
and regulation to U.S. banking institutions.
- Dems Unite,
Putting GOP On Defensive The New York Times' David Herszenhorn says
Democrats have "bridged internal party differences and coalesced around a
plan to tighten regulation of derivatives, the complex financial
instruments that were a major factor in the 2008 economic crisis." This
unity has "raised the pressure on Senate Republicans, who said that they
were still fighting for changes to the bill and planned to block"
- ...Except For These Two Key Dems The
Washington Post's Roberta Rampton
and Rachelle Younglai warn that Democrats risk splitting, "as
Senate Banking Chairman Christopher Dodd and Senate Agriculture Chairman
Blanche Lincoln try to hash out how best to clamp down on derivatives,
blamed in part for accelerating the recent financial crisis." Their two
committees must reconcile their differences if Democrats are to put
forward a single bill they all agree on.
- How Will Dems Get
Their One Republican? Reuters' Roberta
Rampton notes that Democrats need one of the 41 Republican Senators
to vote with them. Sen. Richard Shelby, the ranking Republican on the
relevant banking committee, has not come around. The White House is
courting Maine Republican Senators Olympia Snowe and Susan Collins, both
of whom hinted they could have joined with Democrats on health care but
ultimately backed out. Will they come around this time? If not them,
- Why Selling It to Americans Will Be Difficult Robert Reich explains in
the Financial Times that, although the bill "takes a hard line in many
respects," Americans are wary. "The American public has no independent
means of judging how tough the bill is. Most people do not understand
the intricacies of finance, and still do not know exactly what Wall
Street did to bring the economy to the brink. The dependence of both
parties on the financial industry for political support inevitably feeds
suspicions that the bill is not nearly tough enough."
Goldman Testifies, Congress Rallies Against Banks The Washington
Post's Brady Dennis writes,
"lawmakers will be preparing to condemn the alleged sins of Wall
Street's past and also wrestling over how to prevent such excesses in
the future. Top executives from Goldman Sachs, beset by charges that the
bank misled its clients by selling them mortgage investments secretly
designed to fail, will face questions Tuesday about how the firm
profited from betting against the U.S. housing market."
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