To: Tenchusatsu who wrote (556397 ) 3/22/2010 1:40:40 PM From: tejek Read Replies (1) | Respond to of 1575604 Get Ready. Up Next: Financial Reform by Meteor Blades Mon Mar 22, 2010 at 10:20:03 AM PDT Treasury Secretary Tim Geithner will be speaking this afternoon about financial reform at the American Enterprise Institute, not exactly a place brimful of folks who give smiles to reforms that involve the government unless it's reducing its oversight role. Over the weekend, Federal Reserve Chairman Ben Bernanke made some rumblings about the need to do something about firms that are "too big to fail," calling their existence "pernicious" and an "insidious" barrier to competition. And starting at 5 p.m., Senator Dodd will lead the executive committee of the Senate Banking Committee in the first round of marking up the 1336-page Restoring American Financial Stability Act of 2010. (Summary here.) The session will be web cast live. Thus, with health care (almost) headed for the President's desk, the next legislative elephant in the room is finally making its appearance. And, like those fabled sightless men who each touched a piece of their own elephant and described the whole by the virtues and deficits of its trunk, tail and other parts, the interested factions are each seeing the proposed changes in financial regulation rather differently. Already whittled down considerably by compromise from what it might have been - from what its House counterpart already is - the question now is whether the Senate's version of financial reform will generate as much storm and drama as the health care bill. One thing is fairly certain, the number of Republican Senators who eventually vote for it will be measured in single digits, quite possibly with another GOP goose egg. Before arriving at that all-too-predictable obstructionist vote, however, the Party of No will do everything it can to dilute the legislation. Sen. Richard Shelby of Alabama and Sen. Bob Corker of Tennessee have already introduced some 200 amendments to the Senate bill. I suspect some Democrats will choose to accept a hunk of those amendments in hopes that this will mollify some Republicans into approving the final package. This is, frankly, delusional. Two things are guaranteed in the pursuit of Republican votes by means of watering down proposed legislation: The legislation gets watered down, but the Republican votes don't materialize anyway. Maybe, just maybe, Democrats should think about not watering down this legislation even more than they already have for absolutely no gain whatsoever. It won't generate the votes and it won't stop Republicans from spewing their epithet-heavy attacks. Another certainty is that financial reform will not go nearly far enough toward reversing the 30-year deregulatory trend that in no small part brought on the economic crisis that has forced analysts over the past two years to reach back to the 1930s for relevant comparisons. And by not going far enough, the final certainty is that a fresh crisis will appear sooner or later and drag Americans outside the Top 10% through yet another round of economic hell.