Congress Passes Sweeping Financial Reforms
UN observers inspect the prayer hall of the Sayyida Zeinab shrine which was damaged after a car bomb exploded near the shrine, in a suburb of Damascus, Syria, Thursday June 14, 2012. A car bomb exploded Thursday in a Damascus suburb that is home to a popular Shiite Muslim shrine, wounding at least two people, Syria's state-run news agency SANA reported, while activists said regime troops continued shelling rebellious areas in central Homs province. (AP Photo/Bassem Tellawi) / Bassem Tellawi
Updated at 5 p.m. ET
The U.S. Senate today passed a sweeping bank regulation bill that will make major changes to the U.S. financial system.
The legislation cracks down on banks and Wall Street in the hopes of avoiding another major financial meltdown. The Senate's 60-39 vote came nearly two years after a financial crisis knocked the U.S. economy to its knees.
The bill has been President Obama's top domestic priority after the passage of health care legislation, and in some ways, the bill is tougher than what he sought.
Special Section: Wall Street Under Fire
The president hailed the passage of the bill today, remarking that it will provide long-deserved economic security to families and businesses. He said it ensures there that will be no more taxpayer bailouts and that Americans won't have to foot the bill for Wall Street's excesses.
House aides say they will likely do an enrollment ceremony and the send the bill to the White House today, CBS News Capitol Hill Producer Jill Jackson reports.
The Republican Party is betting that the bill's ambitious goals will be lost on voters and instead feed an election-year narrative that Democrats stand for bigger, more intrusive government.
But the bill bears the fingerprints of many other Republicans.
Senate Banking Committee Chairman Chris Dodd, a Democrat, negotiated several provisions with key committee Republicans such as Richard Shelby and Bob Corker.
That those bipartisan talks even occurred was remarkable in the highly politicized atmosphere in Congress. That they failed to expand the bill's base of support illustrates how much things remain the same.
Even before the Senate passed the bill today, House Minority Leader John Boehner, R-Ohio, told reporters, "I think it ought to be repealed."
"I think the financial reform bill is ill conceived, going to make credit harder for the American people to get, clearly harder for businesses to get and the fact that it's going to punish every banker in America for the sins of the few on Wall Street is unwise," he said. "On top of that I think it institutionalizes 'too big to fail' and gives far too much authority to federal bureaucrats to bail out virtually any company in America they decide ought to be bailed out."
Obama today addressed Boehner's remarks, saying Americans would disagree with the Republican leader.
"I would suggest America can't afford to go backwards," he said. "We can't afford another financial crisis just as we're digging out of the last one."
In an interview, Dodd recalled how two months ago, struggling to secure 60 votes to simply start debate on the bill, some Democrats urged Senate Majority Leader Harry Reid to abandon the legislation and blame it on Republicans.
"There were some who wanted to quit on the bill," Dodd said. Their reasoning, according to Dodd, was, "Why not just hold a press conference and denounce them (Republicans) for not allowing us to get there and try to reap whatever political benefits you could?"
Reid rejected the suggestion.
But the bill's political benefits in a heated midterm election year stand to be overshadowed by lingering high unemployment. And Republicans, casting the bill as vast government overreach, are betting that the voters' antipathy toward big government and their worries over jobs would trump their anger at Wall Street.
"Ultimately in November, people are going to be looking at the size and scope of the federal government, spending and debt and see that a lot of aspects of this bill make things worse in terms of getting America back to work rather than better," said Sen. John Cornyn, the head of National Republican Senatorial Committee.
Speaking on the Senate floor Wednesday evening, Dodd said Americans who have suffered through the recession don't count on Congress alone to bring back their jobs and homes.
"But they do expect us to respond to a situation that brought us to the brink of financial disaster," he said. "And this is our best effort to do so. It's not a perfect effort, I know that."
The 2,300-page legislation, among other things:
• Gives the government new powers to break up teetering companies which if allowed to fail would threaten the economy.
• Creates a new agency to guard consumers in their financial transactions.
• Shines a light into shadow financial markets that have escaped the oversight of regulators.
The bill's many provisions don't offer a quick remedy, however. Rather, they are a prescription for regulators to act. In many cases, the real impact of the legislation won't be felt for at least two years.
"We have no idea whether this bill is historical or not," Corker said. "We won't know for a long time, until the regulators decide what they're going to do with this bill."
CBS/AP The U.S. Senate today passed a sweeping bank regulation bill that will make major changes to the U.S. financial system.
The legislation cracks down on banks and Wall Street in the hopes of avoiding another major financial meltdown. The Senate's 60-39 vote came nearly two years after a financial crisis knocked the U.S. economy to its knees.
The bill has been President Obama's top domestic priority after the passage of health care legislation, and in some ways, the bill is tougher than what he sought.
Special Section: Wall Street Under Fire
The president hailed the passage of the bill today, remarking that it will provide long-deserved economic security to families and businesses. He said it ensures there that will be no more taxpayer bailouts and that Americans won't have to foot the bill for Wall Street's excesses.
House aides say they will likely do an enrollment ceremony and the send the bill to the White House today, CBS News Capitol Hill Producer Jill Jackson reports.
The Republican Party is betting that the bill's ambitious goals will be lost on voters and instead feed an election-year narrative that Democrats stand for bigger, more intrusive government.
But the bill bears the fingerprints of many other Republicans.
Senate Banking Committee Chairman Chris Dodd, a Democrat, negotiated several provisions with key committee Republicans such as Richard Shelby and Bob Corker.
That those bipartisan talks even occurred was remarkable in the highly politicized atmosphere in Congress. That they failed to expand the bill's base of support illustrates how much things remain the same.
Even before the Senate passed the bill today, House Minority Leader John Boehner, R-Ohio, told reporters, "I think it ought to be repealed."
"I think the financial reform bill is ill conceived, going to make credit harder for the American people to get, clearly harder for businesses to get and the fact that it's going to punish every banker in America for the sins of the few on Wall Street is unwise," he said. "On top of that I think it institutionalizes 'too big to fail' and gives far too much authority to federal bureaucrats to bail out virtually any company in America they decide ought to be bailed out."
Obama today addressed Boehner's remarks, saying Americans would disagree with the Republican leader.
"I would suggest America can't afford to go backwards," he said. "We can't afford another financial crisis just as we're digging out of the last one."
In an interview, Dodd recalled how two months ago, struggling to secure 60 votes to simply start debate on the bill, some Democrats urged Senate Majority Leader Harry Reid to abandon the legislation and blame it on Republicans.
"There were some who wanted to quit on the bill," Dodd said. Their reasoning, according to Dodd, was, "Why not just hold a press conference and denounce them (Republicans) for not allowing us to get there and try to reap whatever political benefits you could?"
Reid rejected the suggestion.
But the bill's political benefits in a heated midterm election year stand to be overshadowed by lingering high unemployment. And Republicans, casting the bill as vast government overreach, are betting that the voters' antipathy toward big government and their worries over jobs would trump their anger at Wall Street.
"Ultimately in November, people are going to be looking at the size and scope of the federal government, spending and debt and see that a lot of aspects of this bill make things worse in terms of getting America back to work rather than better," said Sen. John Cornyn, the head of National Republican Senatorial Committee.
Speaking on the Senate floor Wednesday evening, Dodd said Americans who have suffered through the recession don't count on Congress alone to bring back their jobs and homes.
"But they do expect us to respond to a situation that brought us to the brink of financial disaster," he said. "And this is our best effort to do so. It's not a perfect effort, I know that."
The 2,300-page legislation, among other things:
• Gives the government new powers to break up teetering companies which if allowed to fail would threaten the economy.
• Creates a new agency to guard consumers in their financial transactions.
• Shines a light into shadow financial markets that have escaped the oversight of regulators.
The bill's many provisions don't offer a quick remedy, however. Rather, they are a prescription for regulators to act. In many cases, the real impact of the legislation won't be felt for at least two years.
"We have no idea whether this bill is historical or not," Corker said. "We won't know for a long time, until the regulators decide what they're going to do with this bill."
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These dishonest 'financier' nation-wreckers must be made to serve very long prison terms with HARD LABOR, and forfeit the assets, monies, properties, etc, that these parasites swindled from their subject victims.
Also, they should be kept under constant surveillance to find out their offshore accounts and other hidden assets, which they should not be permitted to enjoy.
If the law fails to bring justice to these scheming parasites, then their victims will!
Too many of our lawmakers are also dishonest and in bed with those financiers who make the money flow to keep their high life going for them, hence they protect their 'financier' friends by "immunizing legislation" thereby preventing their being prosecuted for ruining so many lives!
This party must end or these collaborating politician/lawmakers will be responsible for the further, more serious demise of our economy and our country!
Erecting another 'consumer protection' agency that has no real authority or clout to control abuse, only wastes more time, money, allows abusers more leeway to abuse because there's another agency that must investigate, etc., is NOT helping the public!
Laws are already in place, regulatory agencies are in place, it's the LACK OF WILL to use them that's the problem!
No, this bill wasn't really needed, and more importantly, it won't change a thing! Until existing authority 'gets off it's duff' and controls abuse, it will continue!
Yeah. Right. Look it up on Snopes
Ok, I looked. Nothing other than some old article. This was supposedly current.
Most Americans want off this free-market-at-all-cost train that is going over the cliff.
Remember that they took the side of Wall Street fat cats instead of working with the Democrats to insure that we don't have to bail out fat cat bankers ever again.
Associated Press on 07/16/10:
"We're going to be driving jobs and business overseas with this massive piece of legislation," said Sen. Saxby Chambliss, R-Ga.
And Sen. Richard Shelby, R-ala., who worked with Dodd on certain aspects of the bill, denounced it as a "legislative monster" and took special aim at the bill's creation of a new consumer financial protection bureau.
"While a consumer protection agency may sound like a good idea," Shelby said, "the way it is constructed in this bill will slow economic growth and kill jobs by imposing massive new regulatory burdens on businesses."
Birmingham News on 07/16/10:
On Thursday, Shelby ramped up his criticism of the final bill.
"This bill serves only to expand the federal bureaucracy and government control of private sector activities," Shelby said. "It will impose large costs on American taxpayers and businesses without creating one new private sector job. It will lower the availability of credit, raise its cost, and hinder economic growth."
As for Senator Dodd, who takes credit for this bill:
2009: Judicial Watch, the public interest group that investigates and prosecutes government corruption, today released its 2009 list of Washington?s ?Ten Most Wanted Corrupt Politicians.? The list, in alphabetical order, includes:
1. Senator Christopher Dodd (D-CT): This marks two years in a row for Senator Dodd, who made the 2008 ?Ten Most Corrupt? list for his corrupt relationship with Fannie Mae and Freddie Mac and for accepting preferential treatment and loan terms from Countrywide Financial, a scandal which still dogs him. In 2009, the scandals kept coming for the Connecticut Democrat. In 2009, Judicial Watch filed a Senate ethics complaint against Dodd for undervaluing a property he owns in Ireland on his Senate Financial Disclosure forms. Judicial Watch's complaint forced Dodd to amend the forms. However, press reports suggest the property to this day remains undervalued. Judicial Watch also alleges in the complaint that Dodd obtained a sweetheart deal for the property in exchange for his assistance in obtaining a presidential pardon (during the Clinton administration) and other favors for a long-time friend and business associate. The false financial disclosure forms were part of the cover-up. Dodd remains the head the Senate Banking Committee.
New York Times 01/17/10:
Connecticut Sen. Christopher J. Dodd (D) has announced that he won't run for reelection in 2010. Struggling poll numbers in his home state pointed to a difficult path to a sixth term in the U.S. Senate for Dodd, currently the chairman of the Senate Banking committee.
My comments:
Democrats hope to replace Dodd with Attorney General Richard Blumenthal, who has been found lying about serving in Viet Nam. Connecticut voters could do better, and the American public could do better than to allow corrupt politicians in Washington (who are fiscally incapable of balancing the nations checkbook) restructure Wall Street.