Andy Kroll

Andy Kroll

Senior Reporter

Andy Kroll is Mother Jones' Dark Money reporter. He is based in the DC bureau. His work has also appeared at the Wall Street Journal, the Detroit News, the Guardian, the American Prospect, and TomDispatch.com, where he's an associate editor. Email him at akroll (at) motherjones (dot) com. He tweets at @AndrewKroll.

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Finance Reform: Dem Concessions Next?

| Tue Apr. 27, 2010 5:30 AM EDT

After Senate Republicans killed the Democrats' first attempt to begin debating financial reform, members of both parties now head back to closed-door negotiations in an effort to bridge the differences between the Ds, nearly all of whom support the bill, and the Rs, who mostly don't. Sen. Richard Shelby (R-Ala.), a top GOP player in the battle to rewrite financial regulation, told reporters after Monday's cloture vote that he looked forward to a few more days of talks in order to reach some kind of bipartisan agreement. In the days ahead, both parties are going to "try to put that bill together," Shelby said.

In the same breath, though, the affable Alabaman said he wanted to see more concessions from the Democrats. "What I would like to do is reach an agreement on three big sections," he said. He didn't elaborate on what those three "big" sections were, but it's likely Shelby meant resolution authority (how future regulators wind down and euthanize failing big banks without bailing them out); a new consumer protection agency (GOPers and Dems have clashed over the agency's power to write new rules); and, potentially, new oversight of derivatives (the financial products that let manufacturers and utility companies hedge risk but allow financial firms to gamble on the markets). A second cloture vote is likely to happen later on Tuesday. Are Democrats poised to concede more ground to Republicans on a bill some experts say is already miles from ideal?

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Senate GOP Blocks Finance Vote

| Mon Apr. 26, 2010 6:58 PM EDT

Senate Republicans this evening successfully prevented an open debate on a bill that would overhaul how Wall Street and financial markets do business. With a 57-41 vote, the GOP delayed the vote for at least another day; the vote broke down along party lines except for Sen. Ben Nelson (D-Neb.), a centrist Democrat who surprised some by voting against the measure to begin the debate. Here on Capitol Hill, Democrats are expected to schedule another cloture vote soon, even as early as tomorrow, to try to start full debate on financial reform.

In the meantime, talks behind closed doors will continue between Democrats and Republicans in an effort to shape the finance bill in a way that wins over a few Republicans. How far Democrats and Republicans have to go to reach an agreement is unclear. On the one hand, Sen. Richard Shelby (R-Ala.) told reporters earlier today that he felt the bipartisan talks had reached a "tipping point," suggesting that an agreement was near. After the vote, however, Shelby said he still wants to "reach agreement on three big sections," a substantial hurdle for both parties this late in the game given that the Senate has been working on financial reform for almost a year.

Ben Nelson Opposes Finance Debate

| Mon Apr. 26, 2010 5:31 PM EDT

Sen. Ben Nelson (D-Neb.), a centrist Democrat who'd been wavering on financial reform, just cast a "No" on the Senate's cloture vote to start debating a bill that would rewrite the rules of our financial markets. Nelson's vote is likely to kill Senate Democrats' attempts to immediately begin haggling over the bill, largely crafted by Sen. Chris Dodd (D-Conn.) in the banking committee. The Democrats, who lack a supermajority, needed at least one of 41 Senate Republicans to vote "Yes" in order to begin discussions on the Senate floor. Dodd alluded to some disagreement among Senate Democrats last week, as did Sen. Richard Shelby (R-Ala.) today in remarks with reporters. Mother Jones previously reported that Nelson could be among the Democratic hold-outs, given his centrist stance and the fact that he was on a shortlist of lawmakers visited by Treasury Secretary Tim Geithner last week, who has recently met personally with lawmakers on the fence on financial reform.

Nelson's opposition is sure to give Democrats headaches. This winter, the Nebraska senator made headlines for holding up health care reform talks and for trying to secure a provision in the bill benefiting his home state. On financial reform, Nelson had lately backed a provision in the finance bill that exempted companies who've previously traded derivatives from retroactively posting collateral on their existing derivatives trades, the Wall Street Journal reported. The exemption was supported by Warren Buffett, the billionaire Nebraska business guru who feared that without it, his company, Berkshire Hathaway, would lose a substantial amount of money. However, the exemption was killed earlier today, the Journal reported, signaling a major setback for Nelson and Buffett. The removal of that small provision could have prompted Nelson to vote against cloture this evening.

The votes are still being tallied on the Senate floor for the cloture vote, but without agreement on the Democratic side, the effort is likely to fail.

Corker: "Very Good Chance" on Wall St. Bill

| Mon Apr. 26, 2010 4:20 PM EDT

Sen. Bob Corker (R-Tenn.), a top GOP negotiator on the Senate's financial reform bill, says the odds for a bipartisan bill are "still very, very good." In remarks to reporters today, Corker, who spent weeks this winter as the top GOP negotiator alongside Sen. Chris Dodd (D-Conn.), added that while no agreement between the two parties had been reached—and that differences remained within the parties as well—he was still optimistic about passing a financial reform bill with bipartisan support.

Asked about reports of an alternative GOP financial reform bill, Corker seemed to scoff at the idea, saying he was "not sure about that" and hadn't seen the bill yet. The day's financial-related happenings will come to a head around 5 pm, when the full Senate has a cloture vote (a vote to begin debate on the bill). Democrats and Republicans have spent much of the day in closed-door negotiations trying to resolve differences on the bill. Those disagreements concern parts of the bill on unwinding too-big-to-fail banks and regulating derivatives, the complex financial products that amplified the housing meltdown and spread losses throughout the global economy. But there haven't been any breakthroughs reported yet, setting the stage for a party line vote this evening in which 59 Democrats are anticipated to vote for beginning debate and 41 Republicans will block that debate.

Finance Reform: Inches or Miles Away?

| Mon Apr. 26, 2010 2:16 PM EDT

A key vote on the fate of financial reform legislation looms today, when the Senate holds its cloture vote (a vote, that is, to begin debate on the bill) at around 5 this evening. Right now, it seems that all 41 Republicans are united against the bill, while most, if not all, Democrats are onboard. Top senators like Chris Dodd (D-Conn.) and Richard Shelby (R-Ala.) continued closed-door negotiations on the bill over the weekend, but it's pretty apparent that they gained little ground, and that the two parties still have a ways to go before reaching a compromise. While Shelby suggested an agreement wasn't far off during a Sunday appearance on Meet the Press, he added, "inches are sometimes miles."

Over the weekend, Dodd, the architect of the current version of financial reform, agreed to beef up his bill's crackdown on derivatives, the opaque products whose value is derived from an underlying source (anything from the cost of wheat to a mortgage's price). The derivatives agreement—which would force them to be traded on a transparent exchange, cleared through a central clearinghouse, and would spin off derivatives trading desks from their larger firms—was partly a move to win over two GOP senators, Chuck Grassley (R-Ia.) and Olympia Snowe (R-Me.), who are both staunch proponents of reining in derivatives. The derivatives changes in Dodd's bill mostly incorporate ideas from a separate derivatives overhaul passed last week by the Senate agriculture committee, a bill Grassley supported. (He was the only Republican on the committee to vote for it.)  Whether Dodd won over Grassley, Snowe, or any other Republicans with the derivatives tweaks remains to be seen.

The real crunch time will come this evening, when the full Senate votes on whether to move ahead with the debate or not. Until then, senators will be making brief statements on the floor for and against the bill (C-SPAN 2, if you're interested). If they pass it, you'll see a feverish battle on the floor by Democrats to win over a Republican or two and pass the bill. If not, the behind-closed-doors debate will stretch on.

 

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