Senate Democrats Replace Volcker Rule, Confront High Risk Propietary Trading

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

Senators Carl Levin (D-Mich.) and Jeff Merkley (D-Ore.) announced Monday that they have created an amendment that will replace the Volcker Rule, a provision proposed by former Federal Reserve Chairman Paul Volcker aimed at requiring banks to limit their riskier financial activities, in the Wall Street reform bill.

According to Merkley, the Volcker rule served as a place holder that asked regulators to conduct studies in search of problems in the financial market and would then provide Congress with suggestions on how to fix them, but the Senators’ new amendment would effectively eliminate high-risk proprietary trading, an element included in the language of the Volcker Rule and that lay at the heart of the financial meltdown.

“We are declaring as a Congress that high-risk proprietary trading is inappropriate to have in the same house as a bank holding company and then having the normal partnership with regulators to implement that direction, that direction being carve this off and remove it separately,” Merkley said.

The Democratic duo said that this bill has as many as 17 co-sponsors and is supported by Chairman of the Senate Banking Committee Chris Dodd (D-Conn.) and by the Department of Treasury. Despite the fact that the amendment does not have a single Republican co-sponsor, both Senators are riding the support of Chairman Dodd and said there will be a vote on the Senate floor soon.

“We clearly do expect that that will be the case based on the support of Senator Dodd,” Levin said. “We are confident that this will be voted on and we’re confident that it will have not just Senator Dodd’s support, but with that support, have an extremely good chance of passing.”

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.”

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 Pushes For Sanctions Against Iran

By Marianna Levyash-Talk Radio News Service

Senate Banking, Housing and Urban Affairs Committee Chairman Chris Dodd (D-CT) pushed for a number of wide-ranging sanctions against Iran during a hearing Tuesday.

“I intend to move forward in this Committee, this month, on comprehensive sanctions legislation. I am committed, as I think my colleagues are as well, to ensuring that this Congress equips this President with all of the tools he needs to confront the threats posed by Iran," said Dodd.

He announced that they intend to incorporate the Senate's collaborative efforts into legislation that includes:

"Penalties on companies that support Iran’s import of refined petroleum products... the authorization for state and local governments to divest from companies involved in critical business with Iran."

Dodd added, "Our legislation will further tighten our trade embargo on Iran and enhance Treasury’s mandate to freeze assets tied to Iran’s terrorist and proliferation activities and help cut off Iran’s access to the most sensitive and advanced technology available, through tougher export controls on these products sent to Iran through its blackmarket trading partners.”

Dodd hopes that this new legislation will reinforce ongoing diplomatic efforts with Iran.

Dodd: No More Delay For Health Care Reform

By Michael Combier-Talk Radio News Service

Businesses in the the U. S. and ordinary citizens are struggling with their medical expenses, resulting in 62 percent of personal bankruptcies in 2008. Congress can no longer delay instituting healthcare reform, said U.S. Sen. Christopher J. Dodd (D-Conn.), temporary Chair of the U.S. Senate Committee on Health, Education, Labor, and Pensions at a press conference this morning in Washington.

Leading the committee as a replacement for Senator Edward M. Kennedy (D-Mass.) who is suffering from a brain tumor, Dodd said that healthcare reform “will affect every single one of our citizens for years and years to come. And so getting busy about it is important, getting it right is important... (It is) the single most important domestic issue that we have to grapple with and we have to get going on it. We can’t delay in my view,” he said. “The estimates that families can be spending 50 percent of their gross income on health care premiums is just not sustainable.”

A legislative text of the Health Committee bill would be announced later today and is expected to contain “an aggressive schedule,” said Todd. The Committee wants to start having hearings by Friday and start to mark up the legislation on Tuesday of next week.

“This is a beginning...of a journey that will go on for weeks,” said Dodd adding that on the legislation to be introduced later today, “there are some gaps in it (the legislation), and done so intentionally but there are no gaps in our determination.”

This legislation will not make U.S. citizens change their health coverage if they are satisfied with it. “If you like what you’ve got, you get to keep it,” said Dodd. Additionally, no one will dictate to Americans what to choose and the choice of coverage will be left to the customers.

Every American needs to “have access to an affordable, high quality health care...Our economy depends upon it,” said Dodd. The constant rise in medical bills and the fact that health care represents around 18 percent of the country’s gross domestic product “is not only unacceptable, it is completely unsustainable. We just cannot sustain that.”