Finance Reform: Inches or Miles Away?


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.

 

One More Thing

And it's a big one. Mother Jones is launching a new Corruption Project to do deep, time-intensive reporting on the corruption that is both the cause and result of the crisis in our democracy.

The more we thought about how Mother Jones can have the most impact right now, the more we realized that so many stories come down to corruption: People with wealth and power putting their interests first—and often getting away with it.

Our goal is to understand how we got here and how we might get out. We're aiming to create a reporting position dedicated to uncovering corruption, build a team, and let them investigate for a year—publishing our stories in a concerted window: a special issue of our magazine, video and podcast series, and a dedicated online portal so they don't get lost in the daily deluge of headlines and breaking news.

We want to go all in, and we've got seed funding to get started—but we're looking to raise $500,000 in donations this spring so we can go even bigger. You can read about why we think this project is what the moment demands and what we hope to accomplish—and if you like how it sounds, please help us go big with a tax-deductible donation today.

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate