Schieffer: Dems Have Nothing to Lose With Bank Reform

By: David Morgan
Topics: Republicans ,; Democrats ,; Congress ,; Tea Party

(Credit: CBS/AP)

Democrats are gearing up for a Senate showdown next week over financial reform. The first vote is expected on Monday, but Republicans want more time to bargain.

Just one day after committing to bipartisan talks, the two parties were playing the blame game.

While Democrats promise not to let the debate drag on the way it did for health care reform, Republicans say they'll take all the time they need . . . and argue the president's plan is not what the American people want. House Minority Leader John Boehner, R-Ohio, referred to President Obama's reform measures as "a government takeover of the entire private sector."

Senate Majority Leader Harry Reid argued that Republicans were simply stalling, and had months to negotiate changes to the bill. "The games of stalling are over," he said.

With public anger over Wall Street high, and the investigation into fraud involving Goldman Sachs fueling that, it would seem that Democrats have all the leverage, according to CBS News chief Washington correspondent Bob Schieffer, who says they have "absolutely nothing to lose" by pushing for a vote next week, even as Republicans say they'd like a little bit more time to work on a compromise.

"They want to get this out and get it on the table as quickly as possible," Schieffer told "Early Show" anchor Maggie Rodriguez. "They think this is the time to picture Republicans as trying to protect fat cat bankers, as it were. You know, it's one thing to oppose health care reform, but on this case I think most people would agree that doctors are more popular than bankers, especially at this particular time when you've had this lawsuit filed against Goldman Sachs.

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"So Democrats want to move on this as quickly as they can. There's a lot of politics on both sides in this. Let face it, you and I, we look down at our wristwatch and it tells us what the time is and what day of the month it is. On a politician's watch, there's only one date on there, and that is Election Day, November 2010. So they're all thinking about that." (watch Schieffer at left)

Schieffer also predicted that Democrats will be able to get at least one Republican to vote for a debate on the bill, forestalling a threatened GOP filibuster.

"But they're reportedly so close to reaching something that they both can agree on — why not hold out just a little bit longer, to give the public the sense that for once this is a true bipartisan bill?" asked Rodriguez.

Schieffer questioned how close the two parties actually are to agreeing: "They'll be 99% done but then there's that 1% that is always the crucial thing that's so hard to get. I think Majority Leader Reid thinks he has nothing to lose politically by going ahead and trying to do this now. Republicans are going to take absolutely the same tack. But again, I think maybe not Monday, but sometime next week, they will be able to clear the way to at least start this debate."

"At least one Republican, John McCain, said he doesn't understand why the Senate is debating derivatives trading, talking about Wall Street reform, when so many people are in danger of losing their home," said Rodriguez. "Do you think that a lot of people will buy into that argument?"

"Well, I think it all goes back to overall reform," replied Schieffer. "This whole housing crisis and what happened in that had to do with derivative trading. Obviously most of us who are not involved day-to-day in financial dealings on Wall Street don't deal with credit swaps and derivative trades and all that kind of thing, but this is part of the problem of what's wrong here, and I think the Congress will act on that.

"John McCain, we also have to remember, is involved in a very difficult primary campaign against a candidate backed by the Tea Party out there in Arizona," added Schieffer. "So that may have something to do with what he said!"

David Morgan
David Morgan is a senior editor at CBSNews.com and cbssundaymorning.com.

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by savvysoft April 23, 2010 4:50 PM EDT: Is Obama pushing reform the same way mortgage bankers pushed bad loans? Check out http://www.savvysoft.com/dastardly.htm; Reply to this comment


by tsigili April 23, 2010 2:08 PM EDT: The Dems are every bit as protective of the Fat Cat bankers, as the GOP is......maybe more so.

After all....the Dems protected every single aspect of the health care industry, in preserving their ability to raise rates and fees, from pharmaceuticals, to insurance. Their "health care reform" should have been called "preserving the profits for the health care industry". That's all it really amounted to......making the public pay more, for less care.; Reply to this comment


by WernerVoss April 23, 2010 1:39 PM EDT: Fannie and Freddie are at the HEART of this issue... without Fannie and Freddie being run with a total lack of over-sight (denied again and again on a straight partisan votes, all Dems voted no, all GOP voted yes) and the 'Gov." backing all those loans forced onto the banks via the Community Reinvestment Act and it's modified version by Bill Clinton, there would not have been so MUCH risky debt to be bundled into securities....

The banks and private mortgage companies took advantage, this is obvious.. and should be addressed, but the omission of Freddie and Fannie on this issue is criminal! But the Dems have to ignore it... or they will be forced to the truth... the truth of their own complicit ownership of this financial crisis!!

Let's do one thing this time... let's READ THE BILL Harry Reid, long BEFORE you force a rushed vote!! Opps, no... Harry is calling for a vote on Monday.... still an idiot.; Reply to this comment

by stormerF2 April 23, 2010 1:07 PM EDT

Why Fannie and Freddie were not included,and why the Fed(tax Payer) will still be on the hook if a failure happens. Why does the government need to have the say as to who can or cannot take chances on risky investments? It should be the shareholders,not the Tax payers, this bill does nothing about the foreign banks that hold most of AIG's stock and investment capitol.

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by anatolemaher April 23, 2010 3:16 PM EDT: Frankly, "Hand me my cain!" has switched postions so many times I frankly could care less what his oppinion is! Go home John...go home!

Many people had respect for McCain considering he was a prisoner of war, but I'm sorry to say all that respect has evaporated. he was once a "maverick", now he's not..He chose QUEAN SARAH to be his room-mate, she lived up to that title, quit her job for not-so-honorable purposes..He now favors id cards for everyone living or visiting Arizona, wants to build a fence all the way around the border,(who's gonna pay for it? he and his party of NO?). There's no ethical or moral standard, no honor left in this guy, he will PROSTITUTE himself to get re-elected, could've retired gracefully
When he says "MY FRIENDS," watch out for your wallets and whatever else is in your pockets.


by tsigili April 23, 2010 10:40 AM EDT: Well, they certainly need to do a lot better job of it, than they did with health care.; Reply to this comment

by soap-suds April 23, 2010 10:09 AM EDT

The Republicans just want to give the financial sector more time to generate betting slips before regulation kicks in.

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by retm-w April 23, 2010 12:19 PM EDT: soap-suds

Samr thing the dems are doing for the health insurance companies. They gave them four years to take the money and run.