Feingold and Cantwell Block Financial Bill

[t0dd]

Source: NY Times

The Senate on Wednesday rejected an effort by Democratic leaders to complete work on a sweeping financial regulatory bill as two key Democratic holdouts said it still did not sufficiently tighten rules on Wall Street, The New York Times’s David M. Herszenhorn reports from Washington.

The holdouts, Senators Maria Cantwell of Washington and Russ Feingold of Wisconsin, joined with 39 Republicans to block an effort by the majority leader, Harry Reid of Nevada, to wrap up debate on the bill.

Two Republicans, Senators Susan Collins and Olympia J. Snowe of Maine, voted with Democrats in favor of ending debate.

Senator Arlen Specter, Democrat of Pennsylvania, who lost his primary race on Tuesday, was not in Washington on Wednesday, denying Democrats a critical vote. In that sense, Mr. Reid demonstrated to Republicans that he will have the 60 votes to advance the bill once he addresses the concerns of Ms. Cantwell and Mr. Feingold.

The vote was 57 to 42, with Mr. Reid switching to “no” at the last minute so that he can call for a new vote at any point.

Ms. Cantwell is fighting for votes on two amendments she has proposed, including one with Senator John McCain, Republican of Arizona, that would restore the Glass-Steagall Act, which maintained a firewall between commercial banking and investment banking from the 1930s until it was repealed by Congress in 1999.

Ms. Cantwell has another amendment to close a potential loophole in the proposed new rules for derivatives trading.

In a statement, Mr. Feingold said he favored restoring the firewall between commercial and investment banking.

“After 30 years of giving in to the wishes of Wall Street lobbyists, Congress needs to finally enact tough reforms to prevent Wall Street from driving our economy into the ditch again.” Mr. Feingold said. “We need to eliminate the risk posed to our economy by ‘too big to fail’ financial firms and to reinstate the protective firewalls between Main Street banks and Wall Street firms. Unfortunately, these key reforms are not included in the bill.”

Read more: http://dealbook.blogs.nytimes.com/2010/05/19/democratic-holdouts-block-financial-bill/?src=busln

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Wow, two Democrats actually fighting for real reform. Let's hope they don't fall in line like the others. I'm sure in the next day or two we'll hear about Russ taking a ride on Air Force One and seeing the "virtue" of defending and empowering Wall Street (but hey, then again, he's stood firm before). Bravo for a good first step!

[gateley]

1. I e-mailed Cantwell w/my support. She's pissed me off at times, but I agree

with her on this one. I can't believe restoration of Glass-Steagall isn't included in the bill. WTF are these people thinking? Go Maria and Russ!

[Andy823]

6. I am with you.

I don't see eye to eye with her on everything, but on this, I agree 100%! I wrote to both her and Murray earlier when she and McCain first came out with this idea to restore Glass-Steagall supporting the bill. I really wish others in the senate would get on the band wagon and make this bill as tough as they can. If they don't do it now, it will never get done!

[peaches2003]

8. You know what these Senators are thinking !

They are thinking of the one and only thing they EVER think about! Themselves. And their campaign contributions, this time from the banking industry which doesn't want Glass-Steagall. All they care about is getting reelected. NOTHING ELSE!! They sell their souls for $$$!

[gateley]

16. Yeah, you're right. I KNOW the answer is always $$$. nt

[pnwmom]

33. What are you talking about? Feingold and Cantwell are opposing the wishes

of the banking industry, not supporting it.

[peaches2003]

53. Feingold and Cantwell

They voted 'no' in order to rewrite the bill and make it stronger. I know that. But the Repugs are voting against it to keep it from passing and are trying to keep their banking industry campaign contributions.

[tridim]

2. ..And all the Republicans n/t

[Hell Hath No Fury]

3. Thank you Russ and Maria!

Anything other than true reform is bullshit that needs to be killed.

[ChiciB1]

30. I SOOOOOOOOOOO Agree With You! Russ & Maria Are Holding The Bill

up because it actually isn't COMPREHENSIVE enough! This has been discussed by other economists (don't have links) but Dylan Ratigan was talking yesterday about the derivatives that aren't being addressed!

Said that the Senators just wanted to get this thing passed so they won't be held over during Memorial Day! Too BAD! So for me, I say YOU GO Fiengold & Cantwell!

Perhaps someone other than I can explain this better, but I do think I get the gist of what both of these Senators are talking about!!

I KNOW many here don't like Ratigan, but I find his financial information very helpful to me because as a novice economist I need to rely on others to help me out! At least I can "follow" what he's saying even if he goes on and on sometimes! I actually feel he does know what he's talking about.

JMHO!

[No Elephants]

4. K & R Call your Senators to find out why they did not join Feingold and Cantwell.

[AllyCat]

47. Called and THANKED mine for being one of them :)

[chill_wind]

5. Thank you to both of them

sticking with their convictions.

k & r.

[laughingliberal]

7. K & R for Maria and Russ. eom

[ejbr]

9. k & r !! n/t

[sendero]

10. When your're right..

... your right. They are right. The reforms Obama apparently supports are much too weak. I'm glad at least someone in congress will take a stand.

[elleng]

11. Olbermann, in discussing this, snarkily imo referred to Cantwell's vote

as for 'a depression-era' vehicle, that is, Glass/Steagel.

[No Elephants]

22. Things put in place during the Depression Era protected us until Congress repealed them during the

Age of Reagan, in furtherance of plutonomy.

[slipslidingaway]

12. knr nt

[slipslidingaway]

13. Cantwell's statement when voting no on the bailout bill ...

http://cantwell.senate.gov/news/record.cfm?id=303998

"...“I ask you to just think of one institution, in my State, Washington Mutual -- which I would not necessarily applaud for its subprime lending rates or for its use and backing of credit default swaps, but I would ask you to consider the fact that as that institution was forced into sale by this Government,

“Who were the winners and losers in that?

“J.P. Morgan got the assets of that institution and benefited from that. In fact, J.P. Morgan predicted to me on a conference call the night they acquired Washington Mutual that after one year with their investment, they would have an over $500 million on that investment. That is a 27 percent returned in one year...

...“My complaint is: where is J.P. Morgan who should be standing up for the retirement plans, the deferred compensation plans, and other packages that the employees at that company were due?

“It is very convenient for us to now choose that we are going to add to J.P. Morgan's bottom line. In fact, if we would instead do what I am suggesting, we could have an equity proposal instead of having TARP, the Troubled Asset Relief Program, as the roof over America.

“Instead, we could have an equity program where the United States would leverage our capital and spur 10- to 12 times the private sector investment at the same time, our Nation would be better funded, better prepared, for the onslaught of trouble that is still going to remain after we pass this legislation.

“I could not even get my amendment to be considered.

“So, so much for the transparency of the Senate..."

[Dinger]

14. Thank You Russ!

[SleeplessinSoCal]

15. Too bad Dem voters can't get organized to help secure more amendment votes

:(

[No Elephants]

21. Can't?

[cliffordu]

17. YO!!! Maria!!!!!!

put it to 'em sister!!!

[saracat]

18. Bravo for Russ and Maria! I wish the president would support them

and say he won't sign it is Glass--Steagal isn't reinstated!

[dmosh42]

19. Dems need to watch Dylan Ratigan show on 'reform' at 4pm est

He lays it out pretty good, and doesn't hold back on calling out the crooks.

[No Elephants]

23. Maybe, but, at bottom, he is a right winger.

[ChiciB1]

32. Hey There... I Was Just Posting the Very Same Thing!! Ratigan Is VERY GOOD

WHEN IT COMES TO THIS STUFF! I've seen threads here where people just spew HATE about him! I've even been told I was wrong about other people in the PAST, so it's a good possibility that I'm wrong to support HIS views now!

I don't just blindly support or NOT support someone because I get called out on it!! Ratigan is ONE person I feel who is INFORMATIVE enough and speaks plainly enough for me to follow!

Thanks for giving him your support!!

[dmosh42]

38. Yes, it's about this issue, and he's right on!

I've never been a left or right winger, but someone who looks for the right answers. And if it's about stealing money, that's neither left or right, and needs to be opposed. And I might add, we have a whole pile of 'banksters' in the Dem party, which enables the Repukes when it comes to helping the rich gang.

[leveymg]

20. What's scary is that Glass-Steagall is in the least bit controversial

Even after the meltdown, the same Chernobyl engineers are still running the show.

[No Elephants]

24. Barney Frank claims it's outdated and should not be reinstated.

Of course, Barney also claimed to be shocked, shocked, that credit card companies would use the grace period he allowed them to raise interest rates and institute more consumer unfriendly terms.

People, like Frank, who seemed sane, honest and even noble when I was younger seem so very different now. Did they change, or did I simply lose my rose-colored glasses?

Geez, the conventional wisdom is that people get more conservative as they get older. I must be the exception that proves the rule.

[leveymg]

25. I almost went to work for Barney.

Way back, when he was active on another subcommittee that had oversight in my field of work, I also thought he was a good guy, someone who had some real principles, the noble exception. I haven't changed that much, either - I guess he did.

If we can't get things as basic as a Public Option and Glass-Steagall, you have to start wondering whether Washington can reform itself anymore than Wall Street can police itself. A system that is incapable of reform in the wake of collapse will not survive.

Nothing and no one in elected office surprise me much, anymore. I've learned not to expect too much from the American political process, and have become skeptical of those who promise "change" but can deliver, at best, competent crisis management.

[laughingliberal]

29. Barney also allowed New Democrat, Melissa Bean, to hijack his legislation...

and open up a loophole for financial institutions that makes only a few companies subject to important new regulations.

[Recursion]

35. Frank's point was that institutions deregulated by the repeal weren't the ones that screwed up

The ones that screwed up were the banks that were already investment banks under G-S.

[Selatius]

26. GLASS-STEAGALL ACT needs to be restored as soon as possible.

Cantwell should be given high accolades for championing this Depression-era legislation signed into law by FDR, hero of the working class.

[laughingliberal]

28. +1 nt

[icee]

27. This may well reverse the nascent recovery. Since around

1995 and possibly before, the stock markets have led way to economic recovery and decline. If the S&P drops below 666 again, it's over. Richard Russell, who publishes one of the oldest and most respected market letter on Dow Theory put out a report earlier in the week for everyone to get liquid fast. Phase two of the depression will make phase one look like fun and games.

[Recursion]

36. Fortunately that fantasy has been eroded

The DJIA and the actual economy were never coupled except in people's minds; the "recovery" we're suffering through has pretty much pulled the curtain away.

[icee]

39. Baloney. When the SP500 goes down, hiring managers pull

back. You don't believe that, you're not living in the real world. If this market downtrend continues, the recovery is over. You somehow think John who owns XYZ company making widgets suddenly sees his investments lose a bunch of money, and he's going to keep hiring people? Won't happen.

[Recursion]

44. He sees them going up right now and he's not hiring

And, yeah, people have figured out that the price paid for resale of a weighted index of securities has practically nothing to do with the actual performance of the economy.

[icee]

45. Not the people I follow, and I have been doing this for 40 years. To

each his own.

[AllyCat]

31. Thank you Senator Feingold!

We need to stop this from happening again, not just stand up there doing something that makes these idiots think they can walk around with a big gavel for a photo op.

Specter is showing one more reason why he deserved to lose that primary race. Jerk.

[femrap]

34. I would love to see

Glass Steagall back...guess the Dems are taking orders from Wall Street.

The Regular Banksters like owning the Investment Banksters. But just think of all the 'work' that could be created by divvying up these two entities!! The lawyers would be in heaven. All the legal paper that could be passed amongst them by 'DE-merging' the Investment Banksters (the Merrills, the Bear Stearns, etc) from the stodgy old 'let's merely loan out money at a higher rate than we pay our savers' Banksters.

It reminds me of the break-up of good ol' Ma Bell (that's AT&T for you youngsters). All the legal paper that was passed around demerging AT and T into all of those Regionals and then all the Regionals eating each other up. Oh the glorious fun of it all!

I know this may sound sexist, but I'm speaking from my personal experience in Investment Bankstering, da boyz shouldn't be allowed to touch, be around, control, see, have anything to do with those green pieces of paper, you know, money. It always ends badly...like now. I feel entitled to say this because I am what many of you can say on DU and get away with...b*tch.

Masters of the Universe and Banksters of all stripes need step away from the green pieces of paper....Now.

[Kermitt Gribble]

37. K&R for Feingold and Cantwell !

The only 2 Senators for truth on this issue. Where are all the paid shills equating these 2 Senators with repubs? Oh, I see one is upthread already...

[ima_sinnic]

46. yes, the only two with the courage to do so

despite how much that reality pains certain posters, I had to say it again.

[mistertrickster]

40. Actually, I wanted to be able to vote for our first Jewish president--Russ Feingold last election

But when a guy doesn't run, he doesn't run.

[Green_Lantern]

41. holding up financial reform because of Glass-Steagel is self defeating...

None of the banks who failed were even banks who benefited from it. Lehman and Goldman are purely investment banks not involved in commercial banking.

Actually, allowing companies to own commercial and investment banks made it possible for Bank of America and JP Morgan to buy Merrill Lynch and Bear Stearns. That meant we didn't have to bail them out.

Holding this up to institute something that'll have little positive effect is kind of senseless especially when special interests want it stopped.

[icee]

43. You got it! Absolutely stupid. And they will pay for their actions.

[LSK]

49. CitiGroup

Maybe I'm dumb, but were they not playing a large part in the selling off of cut up toxic mortgages??? Wasn't it a big problem that banks would cut up these loans and sell them off to investors?

[Green_Lantern]

50. oh yeah...definitely but Glass Steagel had nothing to do with that

That involves derivatives.

If they blocked this because derivatives not being banned forcefully enough I can see their point.

[Recursion]

54. Glass-Steagall wouldn't have kept Citi from being stupid

It would have kept it from launching a proprietary trading or IB arm that would tank and take the retail deposit accounts down with it (like what happened with the S&L's -- it's still funny to watch It's a Wonderful Life and see the S&L as the good guy). In the end, Citi and the other retail banks didn't start IB activities for the most part, and the idiots that destroyed the economy were the big 5 investment bank houses (4 of which are now owned by commercial banks, thanks to the repeal of Glass Steagall, which made this bailout cost a shitload less than it might have) that were never covered by Glass Steagall to begin with.

[JimWis]

42. K&R

[LSK]

48. how is restoring Glass-Steagall Act not the 1ST thing in the bill???

The bill should be called Glass-Steagall Act restoration act and everything else should be an amendment.

[Green_Lantern]

51. because repealing the Glass Steagel act had nothing to do..

With the financial firms that failed. None of them were commercial bank and investment banks.

[bobburgster]

52. Probably a good move on Feingold and Cantwells part.

Get it as strong as you can when your vote is critical.