Finance Reform Update

Andy Kroll runs down the remaining problems that Republicans still have with the Senate financial reform bill:

Right now, there look to be three main sticking points between the parties. One is the proposed consumer protection agency….What to do with systemically risky, or “too-big-to-fail,” banks is another prickly issue….The third issue where major differences remain is regulating derivatives.

In case you haven’t been keeping score at home, those three things are pretty much the heart of the entire bill. Everything else is window dressing. And just to drive the point home, here’s Andy describing Sen. Richard Shelby’s take on the bill:

Today on the Senate floor, Shelby pretty much eviscerated the measure, while a red-faced and anxious-looking Chris Dodd sat across the aisle from the Alabama senator. “This bill threatens our economy,” Shelby said. He added that the bill would leave taxpayers on the hook for future bailouts; the derivatives provisions would impair the economy; a new consumer bureau would stifle consumer lending; and a proposed Office of Financial Research, which would gather financial data used to predict future financial crises, would pry into Americans’ lives and violate their civil liberties.

But other than that, Mrs. Lincoln, how did you like the play?

Hopefully this is just showboating, because if it’s not it means that Republicans still aren’t in a mood to get serious about financial reform. They just want to gut the entire measure. Either way, it’s pretty reckless behavior.

(And just to address Shelby’s concerns for the record: (a) actually, it would protect taxpayers, (b) no they wouldn’t, (c) it might stifle predatory lending, but that’s all, and (d) WTF is he talking about?)

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