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"Ending more than two weeks of often-contentious negotiations, House and Senate lawmakers reached agreement early Friday on the most far-reaching rewrite of financial rules since the Great Depression," the Los Angeles Times writes. "The final details, including creation of an agency to protect consumers in the financial marketplace and new regulations to reduce risk-taking by large banks and limit their trading of complex derivatives, were hashed out in a marathon 20-hour session that began Thursday morning."
Roll Call: "The vote puts the massive bill one step closer to the president's desk and marks a major victory for Senate Banking Chairman Chris Dodd… Votes are expected next week in the House and Senate. For Dodd, the legislation would be the capstone of his 30-year Senate career. The veteran Democratic lawmaker is retiring at the end of the year after five terms."
The Wall Street Journal on the details: "In two important ways, the agreement is tougher on the banking industry than officials in the Treasury Department anticipated when they first drafted their version of the bill 12 months ago. Lawmakers agreed to a provision known as the 'Volcker' rule, named after former Federal Reserve Chairman Paul Volcker, which prohibits banks from making risky bets with their own funds. To win support from Sen. Scott Brown (R., Mass.), Democrats agreed to allow financial companies to make limited investments in areas such as hedge funds and private-equity funds. The move could require some big banks to spin off divisions, known as proprietary-trading desks, which make bets with the firms' money."
"The bill also includes a provision, authored by Sen. Blanche Lincoln (D., Ark), which would limit the ability of federally insured banks to trade derivatives. This provision almost derailed the bill following vehement objections from New York Democrats. Ms. Lincoln worked out a deal in the early hours of Friday morning that would allow banks to trade interest-rate swaps, certain credit derivatives and others—in other words the kind of standard safeguards a bank would take to hedge its own risk."
Lots of other activity on the Hill yesterday… "Senate Democrats failed late Thursday to break a Republican filibuster of the tax-cut and unemployment-insurance extenders package, leaving its fate uncertain as Majority Leader Harry Reid (D-Nev.) moved on to a jobs bill," Roll Call reports. "The motion to take up the bill, which required 60 votes for adoption, failed 57-41. Sen. Ben Nelson (D-Neb.) joined all Republicans present in opposing the measure. Sens. Robert Byrd (D-W.Va.) and Lisa Murkowski (R-Alaska) did not vote."
"Congress on Thursday overwhelmingly passed the conference report on the Iran sanctions bill," The Hill reports. "The House passed the bill on a vote of 408-8 Thursday evening. The Senate, with a vote of 99-0 earlier Thursday, also cleared the legislation. Now President Barack Obama just has to sign the bill for it to become law." What are the sanctions? "The bill takes aim at Iran's refined petroleum sector. Businesses that help supply Iran with refined petroleum or help develop the country's own refining capacity would be penalized by the legislation. In addition, the Islamic Revolutionary Guard Corps comes under more scrutiny. Any financial institutions found to be doing business with the Guard or with blacklisted Iranian banks could be denied access to the U.S. financial system under the bill."
"Senate Democrats said Thursday that strong momentum is building within the caucus to tackle energy reform this year -- but with few specifics detailed after a closed-door caucus meeting, a path forward remains unclear."
"The House on Thursday narrowly approved a campaign finance bill that tightens disclosure requirements for corporate and union spending on political campaigns," The Hill reports. "The 219-206 vote on the Disclose Act came after weeks of aggressive lobbying by supporters, who cast it as fundamental to the health of American democracy, and critics, who assailed the bill as an unconstitutional infringement on the freedom of speech."
"The House on Thursday passed legislation to reverse a steep pay cut for Medicare doctors that took hold this month," The Hill writes. It passed 417-1 with Rep. George Miller of California the only no vote.
"The temporary 'doc-fix' bill will stave off the 21-percent cut until December, instead providing a 2.2 percent pay increase for doctors who treat Medicare patients," The Hill adds.
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When you have a family member out of work for a year and half this news is very upsetting. Having faithfully worked for a family owned construction business for 23 yrs and then find yourself unemployed can be demoralizing. There are not too many prospects available for an inhouse architect in the highend home building during this time. These benefits help pay a mortgage and keep a head above water. I know the gopers in the senate wouldn't know anything about the struggles ordinary Americans endure in their lives, their decision for me, has a personal face on it and there a so many more unknowns in the same situation.
Gingerbread Mama
I feel for you. I'm a registered architect and was laid off from a commerical firm back in Nov. of 2008. Luckily I've found another position in my field. Some people on this forum think that people without a job want to live off of the system. I didn't want to live off the system, I wanted a job just as your loved one wants employment.
I know there aren't a lot of true architecture jobs out there. If you don't mind me suggesting maybe he can look into things in his same field. Try to get LEED certification become an inspector.
Keep your chin up.
Peace.
Looks like another massive legislative defeat for the dopes of nope looming as much needed financial reform passed the reconciliation process. Now to see how the vote shakes out in Congress. I'm sure that the dopes of nope will largely vote against it as they do the bidding of their Wall Street Banking Criminal Masters. Unfortunately this bill could be much better if the repugnant ones hadn't whined about allowing for tougher regulations on hedge funds. Still it's better than what we had before that the repugnant ones passed 10 years ago which led to the Clueless George Bush Double Dip Recession.
Really sad that the dopes of nope killed the much needed stimulus opackage meant to save 200,000 people from going off unemployment benefits and into the ranks of the homeless. As the repungant ones crow "Scratch 200,000 Consumers"! The dopes of nope are so negative they even voted against tax cuts, now that's depraved as they deprive our country a better chance to recover our Bushwhacked economy. The repugnant ones only care about their petty partisan political agenda to wreck America.
So, perhaps you can inform senator Dodd how the bill works. Is it a victory to pass something when you do not know how it works? Kind of like Pelosi "we have to pass it to find out how it works"?
I guess that Hope and Change in action. Brilliant. What could go wrong?
It's the tail wagging the dog again! It's hard to tell which party is actually in power when in a filibuster, 40 votes rule.
Chuck Todd pointed out an interesting aspect of the recent polls - while a smaller government seemed to be favored, the majority of folks wanted more regulations of BIG OIL and BIG BANKS. That's like the woman condemning a government take over health care, BUT DON'T TOUCH MY MEDICARE! Don't they get it? People have become like media drones that know all the talking points but haven't a clue on the actual issues.
AARP did a nice job last month in spelling out what the new health care meant to you - hopefully we'll see something similar on banking and energy.
Completely laughable. The man who put the rules in place which helped to contribute to the meltdown 2 years ago (Dodd) is responsible for fixing the system? 'Aight. I read "Financial Fiasco" and there is plenty of blame to go around, but Dodd/Frank were two of the key figures. Along with Andy Coumo.
New rules are not going to fix the problem. The SEC didn't even enforce the current rules.
Here's a thought. Let every Senator who voted against the unemplyment exstender go to his home town and help find a job for one needy person. Let them see how hard it is for these folks to find work.
Not all of the 10% unemployed are lazy bums looking for a handout as the GOP suggests, only a small fraction. Show some heart GOP for God's sake.
Hmm, at last check, Democrats have 60 votes in the Senate and a large majority in the House, plus control of the Executive branch. Republicans cannot stop anything.
You need to check again then, because Dems only have 59 votes.... Scott Brown's your 41st senator, remember?
Also, since democrats are not in lock step with each other.... getting all that 59 is quite difficult - they are having the discourse and arguments within themselves - the way all senators are supposed to be;
but what we have is 41 senators in lock step "NO" to everything proposed by the democrats - good or bad; they've turned everything in the congress to Politics - and America has been thrown under the bus.
I'm not a true democrat - in that I may sometimes vote Republican... but no way in hell I'll vote for any repub in there right now....they are all truly RETHUGLIBANs - no brains - just following Rush and Beck around like dogs.
Tunde',
You can't vote for EVERYONE in the Senate. You can only vote for the 2 Senators from your state. So in essence YOU have no control over what other states vote for.
YOU are a TRUE Democrap! Take your label and run with it.
When a party is in the minority generally they do go against the majority party. Democraps do the shiznit too.
Tunde,
As a man who leans to the right politically, I just sit back and enjoy what is going on. Eventually, history will catch up with us.
This bill does nothing to address the crux of the problem; Fannie and Freddie, and monetary policy. Under the Dodd/Frank bill, banks will still be required to meet government-imposed lending quotas to those who cannot afford the loan.
And having Dodd/Frank author this bill is like having the fox guard the henhouse.
http://www.cato.org/pub_display.php?pub_id=11916
"Fannie" and "Freddie" were minuscule part of things... it was the banks and their processes that brought the collapse on, not the small percent of mortgages that went to people that couldn't afford them. That's a problem that should be addressed... the best way would be for the government to take these mortgages, rewrite them all at 20% simple interest and put tons of money back into the hands of the consumers while collecting the interest themselves to eventually result in a net fiscal gain. Opening this up to all Americans for primary residences only would result in a stimulus to the economy the likes of which could never be met with a simple tax cut. Base it on what people can actually afford to pay (no credit scores, real numbers) and use that to determine the length of the loan instead of the length of the loan being used to determine what people pay (simple interest, remember) and it's win all around.
Compounding interest is one of the greatest drains on the wealth of the middle and lower classes in existence. Get rid of it.
What is the source for this information. I'd like to read it.
Did you read my link?
Apparently, we don't have a deal.
I'm a strong Obama supporter but must express frustration at how badly the Administration handles the expectations-game.
It ain't over til it's over. And, Congress being like it is - full of sneaky political types seeking to game the process - nothing will be accomplished until/unless the legislation passes both houses. Latest news out of DC is that Sen. Brown (R - Mass) has decided to bail. And it's unlikely the vacancy created by the passing of Sen. Byrd Dems can be filled instantly at the wave of a Harry Reid wand. The Dems will have to flip Brown and/or look elsewhere for the missing 2 votes.
Meanwhile, there's been way too much premature fist-bumping (& it's not the first time either). I really wish there would be less "this is what we're going to do" or "it looks like this is gonna happen" rhetoric and more centering on: "this is what we did."