Reid: Republicans' Behavior Is "Anti-American"

By Justine Rellosa- Talk Radio News Service

Senate Majority Leader Harry Reid (D-Nev.) described his Republican colleagues' refusal to open up Wall Street reform legislation for formal debate as "anti-American."

"All the talk from the Republicans about wanting to do something about this bill before it gets on the floor is really anti-Senate and anti-American," Reid said during a press conference Wednesday.

Added the majority leader, "They keep stalling and they keep stalling, and it appears that they are more concerned in taking care of the 'fat cats' in Wall Street than they are the people who have been hit so hard."

Sen. Chris Dodd (D-Conn.), who appeared with Reid, stressed that the bill needs to move forward, but also conceded that the bill will not completely rule-out the possibility of a second financial crisis.

"We can't prevent another economic crisis from happening in our country, that will happen someday again," said Dodd. "But we can minimize the impact of that crisis."

Republicans: We're Still Seeking Wall Street Reform Compromise

By Benny Martinez - University of New Mexico / Talk Radio News Service

Republican Senators told reporters Wednesday that they are getting very close to drafting a bipartisan financial regulatory reform bill, despite receiving a letter from Senate Majority Leader Harry Reid (D-Nev.) announcing that negotiations were over.

Earlier this morning, the Senate Agriculture Committee approved legislation that would increase transparency in the derivatives market.

Sen. Richard Shelby (R-Ala.), who has been in negotiations with Sen. Chris Dodd (D- Conn.), said that the Senate Banking Committee has been meeting tirelessly and is making progress towards drafting a “good bill” that will be embraced by both sides of the aisle.

“I’m optimistic that we’re going to get a bill,” Shelby said. “It’s going to be a good bill. We’re not there yet, but I think we’re closer than ever.”

In an effort to protect taxpayers from another bailout, the Republican Senators agreed that financial reform should include provisions specifically targeting too-big-to-fail firms.

“We don’t represent Wall Street, nobody does,” Shelby said. “I can tell you, Wall Street is not going to be writing this bill.”

Time To Act On Financial Reform Is Now, Says Dodd

Citing the urgent need to repair the nation’s ailing financial system, Sen. Chris Dodd (D-Conn.) unveiled his own financial regulatory reform plan on Monday.

Dodd, who presides over the powerful Senate Banking Committee, said although a package he had been working on with fellow committee members Richard Shelby (R-Ala.) and Bob Corker (R-Tenn.) was close to being finished, he decided he could no longer wait for them to help put forth legislation.

“Nearly seven million have lost their homes to foreclosure over the last several years. Millions more have lost their retirement funds or their small businesses...Americans are frustrated...and they wonder if anyone is looking out for them...It is certainly time to act.”

In an attempt to prevent future collapses of both the housing and credit markets, Dodd’s plan would do four main things: First, it would abolish the belief that certain banks and financial institutions are “too large to fail,” ensuring that taxpayers would not again be asked to help bail out firms that fall into trouble. Next, it would create a new independent consumer protection agency (CFPA) to serve as a watchdog over various financial products, and would also establish a council tasked with identifying threats to the nation’s economic stability. Finally, it would increase the transparency by which complex financial tools such as hedge funds and derivatives are regulated.

“The legislation I’m offering is comprehensive in its scope because the crisis it aims to solve is comprehensive in its scope,” Dodd said.

While the plan has bipartisan agreement on several of its provisions, Dodd acknowledged that it currently lacks bipartisan support. Additionally, Dodd hesitated to say that the plan would even receive the blessing of every Democrat on the committee.

There are a few reasons for this. First, lawmakers and outside experts are skeptical over whether housing the CFPA inside the Federal Reserve (Fed) is a good idea. Those skeptics argue that the Fed contributed largely to the economic decline, and thus should not be given increased authority. During his press conference however, Dodd insisted that the CFPA would be an independent body, under no command of the Fed.

Another area of concern for some is that smaller-to-medium-sized banks would be needlessly subjected to tightened regulation under the legislation. But Dodd assured that firms with assets valued at under $10 billion would be excluded from increased oversight.

“We must restore confidence and optimism in our economy, accountability in our markets and stability to our middle class,” he said.

The hardest part for Dodd will now, of course, be getting the votes necessary to pass his plan. With the debate over health reform having renewed an atmosphere of partisanship in Washington, Dodd’s legislation will probably be viewed as too politically risky by moderates and conservatives who face re-election this year. Yet on Monday, Dodd -- who has announced he will not be running for another term in office -- viewed the prospects of passage with an almost defiant sense of confidence.

“We will have financial reform adopted this year in the Congress of the United States.”

Dodd Releases 'Sweeping' Financial Reform Package

By Travis Martinez - University of New Mexico/Talk Radio News Service

Senate Banking Committee Chairman Christopher Dodd (D-Conn.) released his version of "sweeping" financial reform on Tuesday. Dodd's proposal will restructure and create a new architecture to the financial regulatory system.

“It is the job of the Congress to restore responsibility and accountability in our financial system to give Americans the confidence that there is a system in place that works for and protects them,” said Dodd during a press conference.

The 1100-page draft would create a new independent watchdog within the proposed Consumer Financial Protection Agency. It would also allow for a single financial federal regulator whose job it would be to end “too big to fail” companies and protect businesses and individuals from systemic risks.

“Our plan will stop abusive practices by creating an independent Consumer Financial Protection Agency with one mission: standing up for consumers,” said Dodd.

While Dodd's proposal differs from those put forth by the House Financial Services Committee and the White House, it would address the substantial problems that helped cause America's financial crisis.

Dodd told reporters he hopes to move the bill through committee during the first weeks of December. In the meantime he said, he will be welcoming Republican suggestions on the legislation.

Dodd Applauds Obama’s Financial Regulatory Proposals

Speaking to a group of reporters following the President’s speech on overhauling the nation’s financial regulatory system, Senator Chris Dodd (D-Conn.) called Obama’s plan a “step in the right direction.”

Dodd described the President’s plan, which would give the Federal Reserve the ability to monitor risky investments made by financial companies, as an effort to reinvigorate the marketplace.

Although the Senator admitted that there is “not a lot of confidence in the Fed right now,” he professed that the agency has the necessary experience to properly assume this new responsibility. Dodd added that “sitting around, hoping things will work,” should not be the President’s way of dealing with this nation’s current financial mess.

Congressman Barney Frank (D-Mass.), who joined Dodd in speaking to reporters afterwards, took a swipe at Republicans, accusing them of turning a blind eye over the years as major financial companies made risky investments.

During his speech, President Obama described his plan as a means of “leveling the playing field,” for investors, both big and small. The President stressed his desire to promote free and fair markets by closing loopholes that exist in the current financial system. Specifically, Obama suggested it was time to crack down on intricate financial instruments such as derivatives, which he described as being “so complex, it’s impossible to know their actual value.”

The President also spoke of the need to move the country away from a bubble-based economy, adding that it is the duty of his administration to prevent scenarios in which private innovation negatively impacts the marketplace.

Obama also proposed holding mortgage bankers to higher standards, requiring hedge fund advisors to register with the FCC and creating an independent Consumer Financial Protection Agency to eliminate small print and ‘gotcha’ clauses found in mortgages, credit card and other financial agreements.

The President referred to these proposals as “common sense rules.”