Financial Reform

Why The Financial Reform Impasse Is Different From Health Care Gridlock

Brian Beutler | April 26, 2010, 12:02PM

Sen. Chris Dodd (D-CT) speaks with Sen. Richard Shelby (R-AL) on Capitol Hill.

At a superficial level, the impasse over financial reform looks an awful lot like the early days of the health care fight, with Republicans and Democrats meeting privately to reach an elusive, perhaps impossible compromise. And we all remember how that story ended. But peer closely and the two stories are different in so many ways, politically and philosophically, that it's hard to imagine this turns into health care redux.

Perhaps the most important distinction is the politics. Republicans just don't want to go down killing Wall Street reform legislation. That's why they've softened their tone, and that's why they say they're confident they'll ultimately be able to vote for a bill. No doubt they don't mind a bit of delay--every day spent negotiating is another day the Senate doesn't address climate change, immigration, the coming Supreme Court nomination and on and on. But they can't keep up a weeks-long ruse that they're negotiating in good faith, when in fact they aren't, like they did on health care.

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Financial Reform

Republicans And Democrats Dig In For Bruising Fight Over Wall Street Reform

Brian Beutler | April 16, 2010, 3:44PM

Sen. Mitch McConnell (R-KY) and Sen. Chris Dodd (D-CT)

It's shaping up to be a clash of the titans.

On the one hand, Senate Democrats aren't stepping back an inch from their pledge to move ahead with financial regulatory reform, with or without Republicans, by the end of next week. In fact, just today, President Obama threatened to veto a final bill if it's weakened too much during the legislative process.

But on the other hand, Republicans have coalesced around a strategy of uniform opposition to the Democrats' draft legislation authored by Senate Banking Committee Chairman Chris Dodd.

So we're at an impasse.

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Financial Reform

Game Of Chicken: Democrats And Republicans Square Off Over Regulating Wall Street (VIDEO)

Brian Beutler | April 14, 2010, 1:11PM

Clockwise, from top left: Sen. Chris Dodd (D-CT), Sen. Richard Shelby (R-AL), Senate Minority Leader Mitch McConnell (R-KY), and Sen. Blanche Lincoln (D-AR)

Senate Democrats, guided by the White House, wasted little time responding to Republican opposition to their financial regulatory reform proposal. A day after GOP came out swinging against a bill authored by Senate Banking Committee Chairman Chris Dodd, Democrats had a simple message for the minority: your time is running out. This touches off a game of chicken over the first big issue Congress will address after health care reform. And the question of whether the two parties can reach agreement over a growing number of disagreements remains in serious doubt.

This morning, Dodd took the the Senate floor to sound the warning to the GOP. "My patience is running out," he bellowed after issuing a withering critique of Republican leaders for grounding their opposition to his reform bill in a political strategy memo authored by conservative strategist Frank Luntz. Dodd has been negotiating with his counterpart, Sen. Richard Shelby (R-AL), but those talks may not last much longer.

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Financial Reform

Are Democrats Too Confident About Wall Street Reform?

Brian Beutler | April 2, 2010, 11:22AM

Sen. Chris Dodd (D-CT)

You'd think that after watching the four month health care fight turn into a year-long game of legislative Calvinball, Democrats wouldn't take anything for granted. But when it comes to financial regulatory reform, they're downright assured: they're going to get a bill, and it's not going to require any concessions to the GOP.

This confidence manifests itself in many ways.

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Financial Reform

With Health Care Behind Them, Dems Prepare Quick Pivot To Wall Street Reform

Brian Beutler | March 26, 2010, 10:19AM

Sen. Chris Dodd (D-CT) and Sen. Harry Reid (D-NV)

Health care's done. Members of Congress are home, or will be soon, and will spend the next two weeks talking to their constituents about the monumental law they just passed. But when Democrats return to Washington they'll have to balance their health care sales job with a completely different, and long-brewing initiative: financial regulatory reform. And despite the complete absence of Republican support, they are confidently predicting success.

Though overshadowed in the media by the twists and turns of the health care saga, the Democrats' efforts to rein in financial industry excess and address the problem of too-big-to-fail institutions have already come a long way. Last year the House passed the Wall Street Reform and Consumer Protection Act, with zero Republican votes. Last week the Senate Banking Committee advanced its bill on a perfectly party-line vote. And now, with health care behind them, Dems are ready to pivot to that legislation, and are even daring Republicans to obstruct and oppose the initiative.

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