Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: jlallen who wrote (560812)	4/14/2010 4:46:52 PM
From: tejek	Read Replies (1) \| Respond to of 1583507

Yowser.....Dems are getting downright feisty! Its seems they've had enough of GOP BS. Sen. Dodd accuses Republican leader of lying about his bill By Kevin G. Hall \| McClatchy Newspapers WASHINGTON — The architect of sweeping legislation that would revamp financial regulation took the Senate floor on Wednesday to accuse the Senate Republican leader of lying about the bill and being in Wall Street's back pocket. Senate Banking Committee Chairman Christopher Dodd, D-Ct., delivered a blistering 20-minute speech that included the revelation of a political talking points memo from a Republican strategist that was virtually verbatim to the criticism voiced Tuesday by Senate Minority Leader Mitch McConnell, R-Ky. McConnell had accused Dodd of drafting partisan legislation, even though the Banking Committee chairman has worked for roughly half a year with key Senate Republicans and incorporated many of their ideas into his bill. McConnell also said the bill continues controversial bank bailouts, which it does not. "It's a naked political strategy," thundered a visibly upset Dodd. He held up a leaked memo attributed to GOP strategist Frank Luntz that advises Republican lawmakers to accuse Dodd and other Democrats of perpetuating bailouts for giant banks. "Nothing could be further from the truth. The bill as drafted ends bailouts," Dodd said, describing how regulators would get new powers to dissolve large financial institutions, even healthy ones if their size is deemed to threaten the broader financial system. Additionally, the Dodd bill would require large institutions to present a plan for how to liquidate their company if necessary. Both the Senate bill and one the House of Representatives passed in December also would create a fund that financial firms would have to pay into to cover costs of dissolution of large financial firms. The House fund would be $150 billion fund, the Senate's $50 billion. Dodd said that these measures prove that there are no provisions in the legislation for bank bailouts, as McConnell charged and as Luntz had recommended. "Under our proposal, they will never happen again," Dodd said. He suggested that the false allegation was a strategy to help Wall Street banks hold onto the status quo. "Wall Street special interests needed a way to defend the broken system." Shortly after Dodd spoke, two moderates from each party took to the Senate floor to try to restore civility. Democrat Mark Warner of Virginia said he and several Republicans have worked together to take "significant steps forward" on the legislation. Warner has worked closely with Tennessee Republican Bob Corker, who was the chief Republican negotiation in recent months. Corker, too, tried to downplay the rift, noting that some criticism of the bill is "blown out of proportion." McConnell and other Republican leaders have chafed at Corker's working with Democrats on the legislation. Corker defended their criticism of Dodd's bill, saying that some changes made about 10 days ago on behalf of the Treasury Department and Federal Deposit Insurance Corp. could lead to loopholes that allow failing banks to continue. Those changes were made when the regulators cautioned against tying their hands in future crises. That, however, is a far cry from a government takeover of banks or huge taxpayer bailouts, and Corker acknowledged that the issue is solvable. "I think we can fix this ... in about five minutes," said Corker. Earlier Wednesday President Barack Obama met with lawmakers from both parties at the White House, and shortly afterward, as if to underscore Dodd's point, an aide to House Republican leader John Boehner of Ohio sent an e-mail to reporters that mischaracterized what Dodd's bill would do. "It sets up a fund for permanent bailouts that guarantees taxpayers are going to have to keep subsidizing irresponsible behavior on Wall Street," the email said incorrectly. Read more: mcclatchydc.com