Reid: GOP is 'making love to Wall Street'

The Hill ^ | 05/05/10 | Alexander Bolton

[MissesBush]

Senate Majority Leader Harry Reid (D-Nev.) accused Republicans Wednesday of “making love to Wall Street.”

Reid charged that Republicans are stalling action on a Wall Street reform bill because “they are having difficulty determining how they’re going to continue making love to Wall Street” by resisting banking regulation.

The sweeping Wall Street reform bill had stalled on the Senate floor because of a partisan disagreement over how to handle amendments, though shortly after Reid’s comments, Senate Banking Committee Chairman Chris Dodd (D-Conn.) announced a breakthrough in negotiations.

The deal Dodd struck with Sen. Richard Shelby (R-Ala.), the ranking member on his panel, is focused on how to deal with “too big to fail” institutions. It’s not clear whether the deal to provide for the orderly liquidation of troubled banks would be enough to solve the partisan dispute over other amendments.

“They won’t let us deal with any amendments,” Reid complained before Dodd’s announcement. He noted that Republicans had objected to amendments offered by Sen. Olympia Snowe (R-Maine) that Democrats would accept without opposition.

Republicans say they are trying to fix provisions they contend would damage the national economy. They argue proposed regulations of the derivatives market could force it overseas. They also contend that a proposed consumer financial protection bureau could stifle businesses and small banks.

Reid, however, accused the GOP of obstruction.

“It’s obvious they don’t want to put any decent restrictions on what Wall Street has done or are doing,” he said.

Under the deal with Shelby, Dodd agreed to amend a proposal to set up a $50 billion fund to pay for the dissolution of troubled institutions.

Big banks would no longer have to pay into a rescue fund to liquidate large, troubled financial institutions. Instead, creditors would have to pay liquidation costs that exceed the value of the assets sold off during bankruptcy proceedings.

“Creditors will be required to pay back the government any amounts they received above what they would have gotten in liquidation,” Dodd announced in a statement. “Those who directly benefited from the orderly liquidation will be the first to pay back the government at a premium rate.”

Dodd said the agreement would empower the Federal Deposit Insurance Corporation to unwind troubled banks that pose a risk to the markets.

RELATED ARTICLES Klobuchar: Roll out the cots The latest Wall Street reform amendments Shelby warns bill still doesn't have full support “Regulators will still have the authority to break up a company if it poses a grave threat to the financial stability of the United States. A very important point,” Dodd said.

Dodd said the agreement would be offered as an amendment to the broader Wall Street reform bill as soon as Wednesday afternoon.

A Democratic aide expressed hope this would clear the way for other amendments.

“We hope that means we can move forward,” said the aide. “So far, Republicans haven’t allowed us to vote.”

At his press conference, Reid reiterated that he supports adopting amendments to the reform bill by simple majority vote.

Reid said he would also review an amendment offered by Sen. Bernie Sanders (I-Vt.) that would require the Federal Reserve to submit to a Government Accountability Office audit, a proposal the Obama administration staunchly opposes.

Reid touted his long record of supporting greater scrutiny of the Fed, noting he joined Sen. Byron Dorgan (D-N.D.) to call for a study of perks received by the Fed’s board of directors.

“I’ve been working on the Fed for many, many years,” he said.

On the subject of the massive oil spill in the Gulf of Mexico, Reid said he would support legislation co-sponsored by Sen. Robert Menendez (D-N.J.) that would raise BP’s liability for damages to $10 billion. BP is now protected by a cap that limits its liability to $75 million.

Reid declined to say when he would schedule the legislation for floor consideration.

[Fred]

Don’t know about what the GOP is doing, but one thing is for sure...Reid is RAPING the Nevadan voter...highest foreclosures in the nation and 2nd highest unemployment...

[billhilly]

I suppose Reid prefers screwing the American people.