Financial Reform

Sr. White House Official: GOP Consumer Bureau Demands 'Unacceptable'

Brian Beutler | December 5, 2011, 6:12PM

President Barack Obama

The White House making a big public push to pressure moderate Republicans to support Richard Cordray, President Obama's nominee to run the new Consumer Financial Protection Bureau, when the Senate votes on his confirmation Thursday. Nearly all Senate Republicans have vowed to filibuster any potential director until Democrats agree to dramatically scale back the bureau's regulatory power.

In a background briefing with reporters Monday, a senior White House official said the GOP's demands won't fly.

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Consumer Financial Protection Bureau

Republicans Make Power Play To Gut Consumer Financial Protection Bureau

Brian Beutler | May 6, 2011, 4:11PM

Sen. Richard Shelby (R-AL)

On Thursday, while House Republicans were dealing with a small Medicare privatization snafu, their Senate counterparts laid down an impossible marker. Forty four of their 47 members have signed on to a letter threatening to filibuster any nominee to head the new Consumer Financial Protection Bureau unless it is dramatically weakened.

"We will not support the consideration of any nominee, regardless of party affiliation, to be the CFPB director until the structure of the Consumer Financial Protection Bureau is reformed," reads a letter, co-authored by Senate Minority Leader Mitch McConnell and Sen. Richard Shelby (R-AL), ranking member of the Banking Committee.

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Filibuster

How Harry Reid And Mitch McConnell Could Upend Filibuster Reform

Brian Beutler | December 30, 2010, 12:10PM

A handful of junior Democrats, including Sens. Tom Udall (D-NM) and Jeff Merkley (D-OR), have done an impressive job building momentum for a package of modest, but meaningful, changes to the Senate's filibuster rules. But their plan could be completely upended and replaced by even more modest reforms, if Democratic and Republican leaders successfully negotiate a bipartisan rules reform compromise.

In a phone interview with me Wednesday, Udall described negotiations between Senate Majority Leader Harry Reid, Minority Leader Mitch McConnell, and Sens. Chuck Schumer (D-NY) and Lamar Alexander (R-TN) as a "separate track" from his own efforts.

A Senate Democratic aide confirms that those discussions are ongoing, and haven't yet yielded consensus. But if they do, that consensus would serve as a stand-in for Udall's approach, not as an endorsement of it, as previous reporting has suggested.

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Congress

On The Floor: Ten Great Moments From Congress In 2010 (VIDEO)

Eric Kleefeld | December 27, 2010, 8:33AM

As the year comes to a close, and we look ahead to all the wild and wacky things that are sure to happen in the new Republican-controlled House and only narrowly Democratic-controlled Senate, let's take a look back at the past year. A whole lot of amazing and memorable moments happened not only on the campaign trail, but on the two Congressional floors in the Capitol itself.

We've gathered together 10 unforgettable moments from the House and Senate in 2010. Some of them are great -- while others are just so bad that they're good.

But all of them give some perspective on the people who have been running our government, or who are about to have even more power next year. So sit back, relax, and laugh -- because it's better than crying.

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Chuck Grassley

Snowe, Hatch Poised To Take Top GOP Slots On Major Committees In January

Brian Beutler | November 10, 2010, 12:14PM

Republicans didn't pick up the Senate last week. But they did pick up six seats and will have several new members coming to town next year, which means the committees will be rejiggered -- and the leaders of those committees will play the biennial game of musical chairs.

According to top aides, the reshuffling won't be too dramatic this time around. On any particular committee, Democrats adhere to a seniority system to determine who moves up the ladder. Republicans let the members choose who gets the top spot.

With that in mind, here's one likely reshuffling scenario.

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CT-SEN

McMahon Ad: Blumenthal Is 'Just Like Chris Dodd' (VIDEO)

Eric Kleefeld | October 20, 2010, 6:30PM

From a McMahon campaign ad, "Taking Care"

Republican Linda McMahon has a new ad in the Connecticut Senate race to replace Democratic Sen. Chris Dodd, who is retiring and has had to deal with a mortgage scandal involving Countrywide. So her new salvo to attack Dem state Attorney General Richard Blumenthal is...Chris Dodd's mortgage?

In fact, the new one-minute ad ties Blumenthal to Dodd and Countrywide, for a settlement that Blumenthal worked out with Countrywide that this ad charges was so lenient that it was itself corrupt.

"It was the mortgage scandal that devastated our economy, created by greed and corruption at the highest levels. We know about Chris Dodd and his sweetheart deal with Countrywide. But did you know about Dick Blumenthal? Blumenthal cut a deal with Countrywide that let the mortgage giant off the hook for billions. A deal that raided the retirement funds of teachers, firemen, policemen and state employees. Blumenthal protected Countrywide, said the deal was 'in the best interest of investors.' That it wouldn't cost taxpayers a dime. But it did. Even worse, turns out Blumenthal is an investor in the mortgage giant. Billions in ransacked pensions, billions in taxpayer bailouts. Dick Blumenthal, he took care of Countrywide -- and took care of himself, just like Chris Dodd."

The TPM Poll Average gives Blumenthal a lead of 51.5%-43.6%.

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2010 elections

Closing Fast: How Linda McMahon's Millions Have Made A Real Race In Connecticut

Eric Kleefeld | September 20, 2010, 8:37AM

Linda McMahon

So what exactly is going on in Connecticut, the seat where 30-year incumbent Democrat Chris Dodd is retiring? It was widely believed since Dodd's retirement that this would be an easy hold for Dem state Attorney General Richard Blumenthal. But the latest polls show Republican former World Wrestling Entertainment CEO Linda McMahon making up ground -- and conventional wisdom has been moving accordingly.

[TPM SLIDESHOW: Bringing The Smackdown: Linda McMahon's Campaign For Senate, And Her Colorful Pro-Wrestling Past]

When Dodd announced his retirement back in January, the first survey numbers from Public Policy Polling (D) showed Blumenthal way ahead of McMahon by a margin of 60%-28%, compared to Dodd only tying her at 43%-43%. A Quinnipiac poll taken soon after gave Blumenthal a similar lead of 64%-23%. But now a Quinnipiac poll from last week had McMahon narrowing the gap to just 51%-45%.

The TPM Poll Average currently gives Blumenthal a narrow lead of 50.3%-43.0%. And as the graph below shows, he has been losing support -- and she has been gaining -- each with very even and consistent slopes.

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Consumer Financial Protection Bureau

Dodd Hints At Lame Duck Confirmation Of Real Consumer Bureau Director

Brian Beutler | September 17, 2010, 10:40AM

Sen. Chris Dodd (D-CT)

Senate Banking Committee Chair Chris Dodd remains skeptical that Elizabeth Warren can or will be confirmed to truly run the new Consumer Financial Protection Bureau. Yesterday, reacting to news that President Obama would appoint Warren to an advisory role at the CFPB, Dodd urged the White House to send the Senate a confirmable nominee. Possibly even during the so-called lame-duck session after the November elections.

"We still need to have a nominee," Dodd told reporters during a Senate vote. "My hope is they'll send us a nominee sometime in the next few weeks, or even in the lame duck. We'll have hearings and we'll consider who'll actually run the place."

Dodd said he doubts Warren can be confirmed.

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Elizabeth Warren

Confusion Reigns On Warren Role At New Consumer Protection Bureau

Brian Beutler | September 16, 2010, 12:16PM

Chair of the Congressional Oversight Panel created to oversee the expenditure of TARP, Elizabeth Warren.

Conservatives are already calling her a banking "czar." The Obama administration is suggesting that she'll help "get the new federal agency standing." But there's still a great deal of confusion, both on the Hill and in the Obama administration about what Elizabeth Warren's new role as consumer protection adviser will be. Will she be a de facto director of the Consumer Financial Protection Bureau? Or will her powers be limited and subservient to the Treasury Secretary? Nobody seems to know.

After a Senate vote today, three key Senators -- including Warren supporters and detractors -- admitted to not knowing what Warren's new job will entail.

Asked by TPM whether he knew what Warren's role will be, Senate Banking Committee Chairman Chris Dodd answered simply, "No."

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Financial Reform

Dodd Unaware Of Interim Appointment Power For Warren?

Brian Beutler | September 14, 2010, 11:08AM

Sen. Chris Dodd (D-CT)

News reports yesterday generated speculation that the Obama administration will offer Elizabeth Warren a so-called "interim appointment" to head the Consumer Financial Protection Bureau. The authority for the Treasury Department to grant an interim appointment -- distinct from a "recess appointment" -- comes from the financial reform law itself.

In dismissing the rumor last night, though, Senate Banking Committee Chair Chris Dodd -- who authored the law -- claimed he'd never heard of the interim appointment power.

"I don't know what it is. I never heard of it before," said a flabbergasted Dodd to TPMDC. "It's kind of unique isn't it?"

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Chris Dodd

Dodd Reverses Position, Suggests Warren May Not Be Qualified To Head Consumer Bureau

Brian Beutler | August 18, 2010, 10:36AM

Sen. Chris Dodd (D-CT)

Senate Banking Committee Chairman Chris Dodd has for weeks called into doubt whether Elizabeth Warren can be confirmed to head the Consumer Financial Protection Bureau. But for the first time this week, Dodd has called into question whether she's qualified for the job, reversing his earlier position.

"It isn't just a question of being a consumer advocate. I want to see that she can manage something, too," Dodd told the Hartford Courant.

That's a far cry from what he told TPM and other reporters just weeks ago, when his only stated concern, based on his conversations with colleagues, was that Democrats may have a hard time rounding up 60 votes to confirm her.

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Elizabeth Warren

Franken, Progressive Groups Begin Whip Campaign For Elizabeth Warren

Brian Beutler | August 5, 2010, 8:00AM

Chair of the Congressional Oversight Panel created to oversee the expenditure of TARP, Elizabeth Warren.

The Progressive Change Campaign Committee and its new affiliate, the P St. Project, will launch a public campaign this week with the help of Sen. Al Franken (D-MN) to whip up support in the Senate for Elizabeth Warren's nomination and confirmation to head the Consumer Financial Protection Bureau.

PCCC, in partnership with the progressive group CREDO, rounded up 200,000 petition signatures in support of Warren, and will now team up with Franken to urge members to publicly commit to voting for her.

"Elizabeth Warren has proven that she is willing to stand up to Wall Street on behalf of consumers and is the logical choice to lead the Consumer Financial Protection Bureau," Franken said. "If appointed by President Obama, I would vote to confirm Elizabeth Warren to lead the Consumer Financial Protection Bureau."

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Filibuster Reform

Freshman Dems Push To End The Filibuster, Face Dem Opposition

Brian Beutler | August 4, 2010, 2:27PM

Sen. Tom Udall (D-NM)

With a depleted majority expected next January, Democrats will have a decision to make: accept (no) business as usual in the Senate; or change the rules to erode Republicans' ability to obstruct legislation. It's an issue that few in the caucus are prepared to grapple with, and many would prefer to ignore, but a cadre of Democratic freshman plan to force it on day one of the 112th Congress. At stake will likely be the functioning of the federal government, and the party's ability to restore the economy and deliver on their agenda. Yet despite such a stark choice, some in their own party are encouraging them to back off, and even supporters are damping expectations of success.

The leader of the push for rules reform is Sen. Tom Udall (D-NM), whose black cowboy boots and western twang complement his rebellious streak: he thinks the Senate is enamored of itself, hostile to change, and that it's time for all that to end.

"You have to be responsive to what you see, and what you see is a broken institution, and you have to reform that institution," Udall told TPMDC in his Senate office this week.

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Elizabeth Warren

Dodd: No Recess Appointment For Warren, Who Still May Not Be Confirmable

Brian Beutler | July 27, 2010, 1:54PM

Sen. Chris Dodd (D-CT)

Senate Banking Committee Chairman Chris Dodd cast more doubts this afternoon about whether Elizabeth Warren could garner enough votes to head the newly created consumer financial protection bureau, one day after White House Press Secretary Robert Gibbs called her "very confirmable."

"I don't know, that's the question, how does he know that?" Dodd said in response to a question from TPMDC on his way in to the Democrats' weekly policy lunch.

"She's qualified, no question about that. The question is whether she's confirmable," Dodd added. "The issue is [if] you can't confirm somebody, if you go six or seven months without someone in that job, you've got a problem."

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Financial Reform

Signs Point To Tough Haul For A Potential Elizabeth Warren Nomination

Brian Beutler | July 21, 2010, 8:56AM

Elizabeth Warren, Chairman of the Congressional Oversight Panel for TARP

Progressive pressure on President Obama to appoint Elizabeth Warren to head a soon-to-be-created consumer financial protection bureau has reached a fever pitch. But in a troubling sign for her supporters, the White House is remaining mum, and key senators aren't rallying to her defense. In some cases quite the opposite.

"Elizabeth can be a terrific nominee but the question is, is she confirmable? And there is a serious question about that," said Senate Banking Committee Chairman Chris Dodd during an interview on NPR Monday.

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Wall Street

Could The Wall Street Reform Bill Make The U.S. More Susceptible To Financial Collapse?

Brian Beutler | July 6, 2010, 1:59PM

Rep. Barney Frank (D-MA), Senate Majority Leader Harry Reid (D-NV) , Speaker of the House Nancy Pelosi (D-CA) and Sen. Christopher Dodd (D-CT)

President Obama might be on the verge of signing a Wall Street reform bill that makes the U.S. economy more vulnerable to a major financial crisis. At least, that's the view of some experts, both in the Obama administration, on the Hill, and outside, who believe that, amid the anti-bailout fervor consuming the country, Congress and the Treasury Department became too eager to eliminate all future bailouts, and robbed the government of the legal authority they might need in the future to save the economy.

"In general, this is a symptom of the panic that Congress has developed about being seen to allow any form of future bailout," says Doug Elliott, a financial expert at the Brookings Institution, "I say 'panic' because it has prompted a number of limitations that we may come to sharply regret in a few decades when we hit the next truly severe financial crisis."

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Financial Reform

One Down, One To Go: House Passes Historic Wall Street Reform Bill

Brian Beutler | June 30, 2010, 7:00PM

Rep. Barney Frank (D-MA) and House Democratic Leadership.

By a vote of 237-192, the House of Representatives this afternoon voted to pass final legislation dramatically changing the rules that govern the financial industry. Nineteen Democrats joined 173 Republicans in opposing the legislation, which, in addition to limiting the risky practices that lead to the 2008 collapse, will create a new federal agency dedicated to protecting consumers from predatory financial products, and bring to a close the Troubled Asset Relief Plan -- the bailout program created by the Congress in the midst of the financial crisis. Three Republicans voted for the bill, and four members (two Democrats, two Republicans) did not vote.

The Senate is set to take up identical legislation shortly after they return from next week's Independence Day recess. Democrats had hoped to send the Wall Street reform bill to President Obama by weeks end, but last minute hiccups in the Senate -- objections of key Republicans and the death of Robert Byrd -- ultimately made that impossible.

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Financial Reform

Dems and Republicans Clash Over Wall Street Reform Fix

Brian Beutler | June 29, 2010, 5:51PM

Sen. Chris Dodd (D-CT) and Rep. Barney Frank (D-MA)

Late update: Financial reform negotiators agreed tonight on a party line vote to make fixes sought by Sens. Scott Brown, Susan Collins, and Olympia Snowe, changing the way the legislation will be paid for. Speaking to reporters after the impromptu conference committee session, House Financial Services Committee Chair Barney Frank implied strongly that he'd received assurances that the Senate now has 60 votes to pass Wall Street reform. The House will likely take the bill up tomorrow, while the Senate may have to wait until after the July 4 recess to hold its final vote.

Here's how Democrats propose to placate moderate Republicans, who've been threatening to renege on their previous support for Wall Street reform. Instead of paying for the $19 billion cost of financial regulation bill by taxing big banks, the legislation will now raise money in two ways: Ending TARP, and raising the minimum target for FDIC's Deposit Insurance Fund.

Democrats took the extraordinary step this evening of reconvening the financial reform conference committee and making the switch in order to secure 60 votes for the legislation in the Senate. Brown said he'd bolt from the bill without a new pay-for, and Maine Republicans Collins and Snowe made similar threats, leaving Democrats likely vulnerable to a Republican financial reform filibuster.

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Financial Reform

Obama Administration Sided With Scott Brown On Wall Street Bill Loophole

Brian Beutler | June 28, 2010, 4:46PM

President Obama and State Sen. Scott Brown (R-MA)

As the final Wall Street negotiations came to a close last week, the Obama administration quietly sided with Sen. Scott Brown (R-MA) against most Democrats in support of a loophole in one of the key provisions of the financial reform bill.

Several Democratic Hill aides tell TPMDC that the Treasury Department, which wielded tremendous influence over the shape of the legislation, changed its position on the Volcker rule during the final deliberations, endorsing an exemption that will allow banks to invest in outside hedge funds.

"Treasury's official position went from opposed to [the loophole] to supportive," one aide says. "They may have [even] overshot Brown's desires by a bit."

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Financial Reform

Its A Draw! Bank-Friendly Dems And Progressives Finalize Wall Street Bill

Brian Beutler | June 25, 2010, 8:57AM

Rep. Barney Frank (D-MA), Senate Majority Leader Harry Reid (D-NV) , Speaker of the House Nancy Pelosi (D-CA) and Sen. Christopher Dodd (D-CT)

In the wee hours of Friday morning, along party lines, House and Senate negotiators settled on the final shape of legislation meant to rein in Wall Street. The deliberations were tense at times, with House members forced to accept many of the Senate's positions, and legislators with close ties to Wall Street at loggerheads with progressives seeking to make the bill as restrictive as possible.

In the end, they fought to a draw.

Wall Street won a number of battles, but broadly speaking the conference committee strengthened the legislation in some ways, weakened it in others, and for the most part the final bill pretty closely resembles the legislation that passed the Senate this spring.

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Financial Reform

Volcker Softens His Opposition To Tough Derivative Regulations

Brian Beutler | June 14, 2010, 2:08PM

Sen. Blanche Lincoln (D-AR)

One of President Obama's most influential advisers has softened his position on derivative reform, suggesting for the first time that he might be amenable to Sen. Blanche Lincoln's plan to force major financial institutions to spin off their lucrative swaps desks. The development comes as members of Congress who back Lincoln's plan push to preserve it as part of Wall Street reform legislation. But aides on the Hill who back the plan remain skeptical.

According to the Financial Times, former Fed chairman Paul Volcker has opened somewhat to the Lincoln plan, provided it not ban banks from hedging their own risk, or that of their customers, by trading in derivatives.

Just a month ago, though, Volcker, who chairs Obama's Economic Recovery Advisory Board, had a fairly cut and dry view: "I am...aware of, and share, concerns about the extensive reach of Senator Lincoln's proposed amendment," Volcker wrote in a letter to Senate Banking Committee Chairman Chris Dodd. "[M]y sense is that the understandable concerns about commercial bank trading in derivatives are reasonably dealth with in...your reform bill as presently drafted."

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Financial Reform

Senators Say Lincoln Victory Saves Tough Derivatives Regs

Brian Beutler | June 10, 2010, 9:49AM

Sen. Blanche Lincoln (D-AR)

A number of key senators returned to the Capitol after election Tuesday with good news for Wall Street foes. By defeating her primary challenger, Lt. Gov. Bill Halter, Sen. Blanche Lincoln (D-AR) has strengthened her hand in the final financial reform negotiations, and has given new life to a much-debated provision, which would require financial firms to spin off their derivatives trading desks. But the measure still faces broad and stiff opposition from powerful interest groups and the Obama administration, and there's little if any evidence that Lincoln's victory weakened their resolve to, at the very least, scale it back.

"She returns as the chairman of the Agriculture Committee, running for re-election in November, which I think gives her a strong bargaining position," Senate Majority Whip Dick Durbin told reporters yesterday.

The reasoning is simple: Facing a tough re-election challenge in November, Democrats will be loath to publicly undercut her, particularly given how great a role her contributions to Wall Street reform played in the Arkansas primary.

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Financial Reform

GOPers Call Dems' Bluff On Wall Street Reform Transparency

Brian Beutler | May 27, 2010, 6:22PM

Sen. Richard Shelby (R-AL)

Senate Republicans are calling Democrats' bluff on the promise of transparent Wall Street reform negotiations. In a letter delivered tonight to Sen. Chris Dodd (D-CT) and Rep. Barney Frank (D-MA)--the financial reform point men in the House and Senate--the GOP's top negotiators demand that the conference committee process be opened further than Frank is willing to allow.

"The conference's work is too important for it to be bound by artificial deadlines," the letter reads. "The only reason for rushing the conference would be to hide from the American people poorly conceived legislation or legislation designed to help a particular special interest. Accordingly, members should have ample time to consider and offer amendments to any proposal before it is voted on by the conference. All members also should have an opportunity to be heard on every issue the conference considers."

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Financial Reform

Nothing To See Here! Wall Street Reform Negotiators Say No To Full Transparency

Brian Beutler | May 27, 2010, 12:12PM

Sen. Chris Dodd (D-CT) and Rep. Barney Frank (D-MA)

House Financial Services Chairman Barney Frank punctured a growing call for greater transparency in the final Wall Street reform negotiations today, saying there will be no time to air any proposed changes to the legislation in public before they're adopted.

"No, you won't have time to do that, because...we have a fairly short time period," Frank told me this morning.

Whether time was the issue or not, other leading congressional negotiators didn't appear to have much of an appetite for operating in as open an environment as possible.

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Chris Dodd

Reformers Eye Schumer's Role In Wall Street Negotiations

Brian Beutler | May 26, 2010, 3:29PM

Sen. Chuck Schumer (D-NY)

Progressives are hoping to keep congressional Wall Street reform negotiators on their best behavior as they iron out the difference between House and Senate legislation. But they fear that at least one Democratic conferee might be a bit meddlesome: Sen. Chuck Schumer (D-NY) is the fourth ranking member on the Bankng Committee, who, despite close ties to Wall Street, laid very low during the financial reform floor fight, raising his head only occasionally to support fellow Democrats as they worked to advance and improve the bill.

Now suddenly he's one of only a small number of legislators who will get to influence the final product.

"It did surprise me," said Robert Borosage, co-director of the Campaign for America's future. "I didn't expect him to be on it, I have to admit. I assume he must have really asserted himself to get that position."

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Wall Street

Senate Announces Conferees For Financial Reform Negotiations

Jillian Rayfield | May 25, 2010, 11:34AM

Sen. Chris Dodd (D-CT)

Senate Democrats have announced their conferees for financial reform. These senators will meet with their House counterparts in the coming weeks to iron out the differences between each body's financial reform bill.

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Financial Reform

Will Wall Street Reform Negotiators Publicly Weaken Derivative-Trading Regulations? (VIDEO)

Brian Beutler | May 21, 2010, 3:26PM

Sen. Mark Warner (D-VA)

They are doing it live--at least according to House Financial Services Committee Chairman Barney Frank.

After a White House meeting with President Obama, and his Senate counterpart Chris Dodd today, Frank told reporters that no changes will be made to Wall Street reform legislation during final negotiations behind closed doors.

"We will have a conference, I think, that will work well. It will be conducted, the formal parts, in public," Frank said. "That means that no agreements reached, no compromises, which obviously are being discussed, will be made part of anything without being publicly presented and voted on and discussed."

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Financial Reform

We're Doin' It Live! Republicans Give Thumbs Up To Televised Wall Street Reform Negotiations

Brian Beutler | May 21, 2010, 10:37AM

Sen. Chris Dodd (D-CT) and Rep. Barney Frank (D-MA)

Should the final act of the financial reform fight be televised? If it is, it would make any efforts--whether Republican or Democrat-led--to weaken the final product a heavier lift. And so there will be significant pressure to cut the final deal in as much darkness as possible. But if that's the route legislators decide to go they'll have to walk back from earlier nods toward the importance of transparency

Several weeks ago, House Financial Services Committee Chairman Barney Frank dared Senate Republicans to oppose Wall Street reform, and warned that, after the Senate passed its legislation, any further efforts to weaken the final product would have to be public: a formal conference committee to iron out the differences between the House and Senate bills, even a C-SPAN camera so the whole world could see where each party stood.

Well, last night, the Senate passed its bill, and on Monday the Senate will take formal steps to begin the conference committee process. And in conversation, key Republicans and Democrats last night say they think inviting the cameras along would be just fine.

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Financial Reform

Senate Passes Wall Street Reform Bill

Brian Beutler | May 20, 2010, 8:47PM

Sen. Tom Harkin (D-IA), Senate Majority Leader Harry Reid (D-NV), Sen. Chris Dodd (D-CT), Sen. Max Baucus (D-MT)

By a vote of 59-39 tonight, the Senate passed sweeping legislation to tighten the rules governing the U.S. financial system.

Four Republicans -- Sens. Scott Brown (R-MA), Chuck Grassley (R-IA), Susan Collins (R-ME) and Olympia Snowe (R-ME) -- joined with all but two Democrats, Sens. Maria Cantwell (D-WA) and Russ Feingold (D-WI), who opposed the bill for not being more aggressive in reforming Wall Street. Sens. Robert Byrd (D-WV) and Arlen Specter (D-PA) didn't vote.

In the weeks ahead, House and Senate negotiators will meet in a formal conference committee to iron out the differences between this package, and the broadly similar bill the House adopted late last year. The Senate is expected to name their negotiators on Monday.

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Financial Reform

Dems Delay Wall Street Bill After Republicans Block Amendments

Brian Beutler | May 19, 2010, 2:02PM

Sen. Carl Levin (D-MI)

A scheduled 2 p.m. vote to end debate on the Senate financial reform bill had to be pushed back this afternoon because of objections by Democrats.

The exact sequence of events is a bit unclear, but it centered around an attempt by Sen. Chris Dodd (D-CT), who's managing the bill on the floor, to call up some final amendments before the 2 p.m. cloture vote. But Sen. Carl Levin (D-MI), who's trying to secure a vote on his own amendment, and who is one of several progressives dismayed by Democratic leadership's unwillingness to allow votes on consumer-friendly amendments, objected.

Dodd and Senate Majority Leader Harry Reid could try and cut off debate anyhow, but their decision to delay, at least for now, may indicate that they're shy of the 60 votes they'd need to prevail. Democrats will be caucusing shortly, to figure out a way around the impasse. The way things work around these parts, that could take hours...or much longer.

Financial Reform

Dodd Drops Plan To Scale Back Derivative Regulation

Brian Beutler | May 19, 2010, 12:50PM

Sen. Blanche Lincoln (D-AR)

A far-reaching proposal to regulate derivative trading will not be scaled back in Wall Street reform legislation, at least for now, multiple Senate aides confirm. The development comes as welcome news to an unusual mix of progressives, financial officials, and at least one conservative Democrat: Sen. Blanche Lincoln (D-AR).

Lincoln is the author of the derivatives title in the Senate's financial regulation bill, and for weeks has faced opposition from Wall Street, the White House, and members of her own party over a provision to force financial firms to spin off their derivatives trading desks into stand-alone entities.

The proposal to weaken the derivatives title was ultimately drafted by Senate Banking Committee Chairman Chris Dodd--the Democrats' chief financial reform negotiator--and introduced yesterday at the eleventh hour of the debate over Wall Street reform. In it, Dodd proposed kicking the spin-off provision down the road for two years pending review by federal regulators, many of whom are already unfavorably disposed to it.

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Blanche Lincoln

Down To The Wire: Democratic Leaders Scramble To Keep Financial Reform From Unraveling

Brian Beutler | May 19, 2010, 9:06AM

Sen. Chris Dodd (D-CT)

What had been a fairly non-contentious debate over Wall Street reform legislation nearly came off the rails on Tuesday after Republicans--tacitly backed (or at least unimpeded) by top Democrats--used Senate rules to block votes on far-reaching, consumer-friendly amendments, portending a potential progressive revolt.

This afternoon at 2 pm, Senate Majority Leader Harry Reid will attempt to bring debate on the financial reform bill to a close, though it remains unclear whether he has the 60 votes he'll need to prevail.

A big reason for that? A number of Democrats--most vocally, Sen. Byron Dorgan (D-ND)--have threatened to vote against ending debate until their flagship amendments get a vote on the floor. But Republicans are standing in the way, saying they'll filibuster those amendments, subjecting each to a 60 vote requirement, and, more importantly, several days' worth of delay. Faced with a choice between picking a fight with Republicans over those amendments and simply moving ahead with the bill, Democratic leadership has, for now, chosen the latter.

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Financial Reform

Dems Take First Step Toward Gutting Key Wall Street Proposal

Brian Beutler | May 18, 2010, 9:08PM

Senator Chris Dodd (D-CT)

There's now officially a plan to scale back Blanche Lincoln's far-reaching proposal to regulate derivatives, and it comes from a leading Democrat.

At issue remains Lincon's plan to force financial companies to spin off their derivatives trading desks into distinct entities. Today, minutes before the noon filing deadline, Senate Banking Committee Chairman Chris Dodd introduced legislation to delay the spin-off provision for two years, pending review by federal regulators, and likely scotching it altogether.

Already, progressive and conservative senators are rebelling against the Dodd plan--though it's unclear if or when the plan will get a vote. And, as reported here last week, the timing spares Lincoln, who's facing a primary election tonight, the political embarrassment that would have accompanied gutting the most controversial and populist element of her plan. In fact, the plan itself could give Lincoln cover to argue that her proposal has been preserved. Though in a statement issued today, Lincoln reiterated her support for her amendment and vowed to fight to preserve it.

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Financial Reform

Dorgan 'Not Interested' In Voting For Too-Weak Financial Reform

Brian Beutler | May 18, 2010, 7:47PM

Sen. Byron Dorgan (D-ND)

The Senate just voted 56-38 to table Sen. Byron Dorgan's amendment to the Wall Street reform bill that would have banned trading in naked credit default swaps, essentially eliminating a huge gambling market, wherein speculators bet on the success or failure of entities in which they have no financial interest.

That may complicate matters for Democratic leaders, who quite possibly just lost Dorgan's vote.

"I'm not very interested in moving a bill that doesn't address the central issue that I want to address," Dorgan told me a few minutes before his amendment was tabled. "But we'll see. We'll work tonight and see what happens."

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Financial Reform

GOP Threats On Trading Amendment Endanger Financial Reform Package

Laura Colarusso | May 18, 2010, 6:14PM

Sen. Chris Dodd (D-CT)

At the center of the latest showdown over financial reform legislation is a proposal to strengthen the Volcker rule, which would limit on risky trading on Wall Street. The amendment, which was scheduled for a vote by bipartisan agreement, is now being objected to by GOP leadership. But Progressive Dems say without a vote on their amendment, they may not allow the bill to proceed.

For his part, Sen. Chris Dodd (D-CT) supports the measure, but is not inclined to put it in his manager's amendment in order to make sure it gets a vote.

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Richard Blumenthal

Dodd Defends Blumenthal, Calls Vietnam Row A 'Bump'

Brian Beutler | May 18, 2010, 10:39AM

CT Attorney General Richard Blumenthal (D) and Sen. Chris Dodd (D-CT)

Top Democrats are defending Connecticut Attorney General, and Senate hopeful, Richard Blumenthal from charges that he lied about his military service during the Vietnam War. Retiring Sen. Chris Dodd (D-CT), who Blumenthal hopes to succeed, strongly reiterated his support for Blumenthal, telling me the new allegations change nothing.

"Dick Blumenthal and I have known each other for almost 40 years, and I've always known him to be the most honorable of people," Dodd said, just outside his office. "And nothing I read says anything differently about Dick Blumenthal. He's going to be a great United States Senator in my view. He's been a terrific Attorney General. So this is a bump but frankly I think that he's handled it well and as I said, I've known him to be nothing but the most honorable of human beings in public life."

But what if Republicans have the goods on Blumenthal? What if he can't adequately contextualize the story, which has onlookers left and right predicting his demise? Even then, Dodd says, Blumenthal should persevere.

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Financial Reform

Democrats Press Swift End To Fight Over Wall Street Reform

Brian Beutler | May 18, 2010, 10:01AM

Senators Mitch McConnell (R-KY) and Harry Reid (D-NV)

Democrats and Republicans may once again be poised for a head-to-head collision over Wall Street reform.

Senate Majority Leader Harry Reid started the clock yesterday, and it is now ticking down toward a key Wednesday test vote, where Democrats will learn whether or not they have assuaged (or intimidated) enough Republicans to break a filibuster.

Leadership wants every Democrat, and at least one Republican on board, but at this late hour it's not clear they have either. Feeling burned by leadership, and dubious that the legislation reaches far enough to truly rein in excess on Wall Street, Sen. Byron Dorgan (D-ND) has threatened to join the filibuster, unless his amendment that would ban trading in naked credit default swaps gets a vote on the floor. Discussions between Dorgan and other leaders continues, but thus they remain at an impasse.

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Financial Reform

Durbin Says Dorgan Financial Reform Threat A Concern For Dems

Christina Bellantoni | May 17, 2010, 4:40PM

Sen. Dick Durbin (D-IL)

Is Senate leadership worried about Sen. Byron Dorgan's filibuster threat tanking financial reform? "You bet," Sen. Dick Durbin told me today at a briefing with reporters.

"We need 60 votes. I'm going to make sure we get every Democrat on the bill," Durbin (D-IL) said when I asked him about Dorgan's concerns.

Durbin said he doesn't know if Dorgan (D-ND) has reached an agreement with Banking Committee Chairman Chris Dodd (D-CT) and both of those Senate offices have been tight-lipped today as Senate moves toward final passage of the bill. During the briefing, Durbin and Sen. Sheldon Whitehouse (D-RI) discussed an amendment likely to get a vote in the next few days allowing individual state regulation of credit card companies.

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Financial Reform

Spurned By Dem Leadership, Dorgan Threatens Filibuster On Wall Street Reform

Brian Beutler | May 13, 2010, 7:54PM

Sen. Byron Dorgan (D-ND)

What started as a minor skirmish among Democrats over Wall Street reform could turn into a big problem, if party leaders stand in Byron Dorgan's way. And with Senate Majority Leader Harry Reid hoping to draw debate to a close by Wednesday next week, they don't have much time to act.

On the Senate floor this evening, the North Dakota Democrat told Harry Reid and Chris Dodd he'd try to block financial reform legislation from coming to a vote unless they give one of his amendments a fair hearing. "I just told the leader and the committee chairman that I wouldn't be voting for cloture--I'd be voting against cloture--unless my amendment is considered," a frustrated Dorgan told me and one other reporter on his way out of the chamber.

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Financial Reform

Progressives Buck Democratic Leaders On Wall Street Reform

Brian Beutler | May 13, 2010, 12:33PM

Sen. Byron Dorgan (D-ND)

The Wall Street reform bill has no doubt drifted leftward in the past several days. But that doesn't mean all Senate liberals are happy. Several progressive and populist senators think the bill's broad approach does not call for the fundamental reforms Wall Street needs. They've been pushing far-reaching amendments that would shrink major financial companies, and further limit high-risk trading and though their efforts likely do not have enough votes to pass, they at the very least want to get a fair hearing. And they're banding together to make sure they get one.

"[Democrats] will insist on having the opportunity to have the key amendments offered and debated and voted on," Sen. Byron Dorgan (D-ND) told me this morning.

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