Chris Dodd: Financial Reform Bill Would Stop Goldman-Style "Shenanigans"

By: Stephanie Condon
Topics: Democrats ,; Economy

(Credit: AP)

Democrats in the Senate will move forward this week with their financial regulation bill, Senate Banking Committee Chair Chris Dodd (D-Conn.) said today, even though Republicans still stand united against the legislation.

Republicans have charged that the bill "allows for endless taxpayer bailouts of Wall Street," but Dodd said just the opposite is true. He added that such legislation would stop the kind of activity that investment bank Goldman Sachs was recently charged with -- defrauding investors.

"Let there be no doubt in my mind, our bill would have prevented that kind of events from happening, in my view, and that's what the public needs to know," Dodd told reporters today. "By not enacting our legislation, by filibustering it, stopping it, we leave the American public vulnerable once again to the kind of shenanigans that have occurred in our large financial institutions across this country."

Democrats intend to move the bill forward this week, he said.

"We've had a lot of the conversations, there's still room for some more, but the talking is almost over and now we need to move and make decisions about whether or not we're going to support this legislation," the senator said.

He added that Democrats should be able to get the votes to open debate on the bill and consider amendments, since in a letter stating their opposition last week, Republicans made no mention of filibustering the bill.

"In light of the events of the last week or so... I don't really believe Republicans want to be in a position where they are talking about filibustering this bill," Dodd said.

The GOP's contention that the reforms amount to a "bailout bill" is focused on a provision in the legislation that would create a $50 billion bank liquidation fund. Large financial institutions -- not taxpayers -- would be responsible for providing the $50 billion, which the Federal Deposit Insurance Corp. would use to pay for dismantling giant failing firms.

Goldman and SEC: Why No Settlement?
Goldman CEO: We'll Defend our Reputation

When a financial institution fails, "instead of having an implicit guarantee you get bailed out, our legislation says: No, that's over with, forever," Dodd said. The new fund, he said, would be used "to unwind those institutions intelligently and smartly, so it doesn't have an effect on other solvent institutions."

The Obama administration has urged Senate Democrats to drop the fund because it is unnecessary, but Democrats said today they are still waiting for a Republican alternative.

"If there were other ways to do this, we'd listen," Sen. Mark Warner (D-Va.) told reporters. "'We need to hear specific suggestions, not broadbased partisan attacks."

President Obama will travel to New York on Thursday to sell the reforms to the American public. Democrats have cast the issue as a choice for lawmakers between siding with American people or siding with big banks.

Stephanie Condon
Stephanie Condon is a political reporter for CBSNews.com.
Follow on Twitter »

25 Comments Have Your Say
Email Story Send to a Friend
Share This Tell Your Friends
Tweet This Tweet This
More Share It

Add a Comment

See all 25 Comments


by gghhff22 April 21, 2010 11:20 AM EDT: So, people... DO YOU THINK Chris Dodd really has ANY INCENTIVE to create real financial reform? I'd say he has a blatent conflict of interest here, based on the TOP CONTRIBUTORS to his campaign...

http://www.opensecrets.org/politicians/summary.php?type=C&cid=N00000581&newMem=N&cycle=2010

How much do you want to bet that Mr. Dodd will be job hunting on Wall Street after his final term in the Senate comes to a close?

The Republicans are blatently and obviously in the pocket of Wall Street as well, but at least they aren't pretending otherwise (at the moment).; Reply to this comment


by tsigili April 19, 2010 4:14 PM EDT: So......what is going to stop Congress' shenanigans????????; Reply to this comment

by whosaid1 April 19, 2010 2:29 PM EDT

God....when do we get "rid" of this poor excuse for a representative!!!??? What a piece of "crap".

Reply to this comment


by Palin_for_Presidentess April 19, 2010 3:11 PM EDT: Don't talk about your mother that way.

by jd1367 April 19, 2010 2:18 PM EDT

So what regulations do we need to stop Dodd-style Shenanigans?

Reply to this comment


by Palin_for_Presidentess April 19, 2010 3:12 PM EDT: I'm sure your mother could stop him for about 3 minutes.

by quietfireII April 19, 2010 2:16 PM EDT

Poor Republican, when are they ever going to argue for something that helps someone other than big business?

Reply to this comment


by ohiopolitico April 19, 2010 3:18 PM EDT: WAKE UP! REPUBLICANS ARE TRYING TO MAKE THIS BILL TOUGER, yes, tougher, FOR BANKERS.
Democrats are "enabling" bankers to make the same risky deals.

by dylan915 April 19, 2010 2:12 PM EDT

Go Democrats and Obama: Stop the corruption in our financial systems !
The just Say No Party will again try to resist, afterall they haven't done anything to
improve America in nine years.
But the rest of the country is moving forward. There is nothing bad about being progressive.
These reforms are essential to rebuilding trust in American's to invest their money after having lost so much due to a system that was running wild without reform.
Obama is once again showing his leadership , and America will not forget who stood for them, and who turned against them in health reform and financial reform in the next elections.
Obama is on the right path.

Reply to this comment


by IL-Independent April 19, 2010 3:06 PM EDT: You're smoking the wrong dope bud


by chitown639 April 19, 2010 2:12 PM EDT: by IL-Independent April 19, 2010 1:03 PM EDT
Go do the research. I mean go look at senator Shelby in 2005 who wanted to reform the banks. But I know it is to hard for you to listen to that but the truth is out there on the internet. Just go look for it Chi. I know you though, you won't because you do not want to learn anything.
_________________________________________

Richard Shelby hasn't done much of anything for any kind of financial reform, aside of voting against the Gramm-Leach-Bliley Act. Moreover, your response to the abysmal record the Republicans have on financial reform is to point to the actions of a single republican out of the dozens of congressional republicans who have made lucrative political careers out of road blocking financial reform for decades.; Reply to this comment


by ohiopolitico April 19, 2010 1:57 PM EDT: Democrats are talking out of both sides of their mouth. Wall Street contributed $1 MILLION to Obama's campaign, along with contributions to other democrats.; Reply to this comment


by stormerF2 April 19, 2010 1:54 PM EDT: This from the Guy who gave AIG bonuses from the stimulis bill after bailing them out? This from the guy who got sweetheart deals from the mortgage companies and a house paid for in Ireland and claimed he did not know that VIP treatment was special treatment? This from a Guy whose wife worked for AIG?.. Trust Me sucker,my koolaid is better.; Reply to this comment

by votedforobama April 19, 2010 1:29 PM EDT

"Large financial institutions -- not taxpayers -- would be responsible for providing the $50 billion, which the Federal Deposit Insurance Corp. would use to pay for dismantling giant failing firms."

Um, where do large financial institutions get their money? Oh that's right, from taxpayers.

Reply to this comment


by schnauzergirl April 19, 2010 2:16 PM EDT: Better they payy into thin fund than but more Bentleys for their top execs.


by votedforobama April 19, 2010 2:45 PM EDT: Do you really think this bill would affect the personal finances of Wall Street bankers in any way? Get real.