3:43 AM 04/30/2010
Now the Real Work Begins - Two years after the economic meltdown and two weeks into a legislative stalemate, Republicans and Democrats yesterday agreed to proceed with debate on the Senate's financial reform bill. Bloomberg reports that Republicans agreed to go forward after assurances that Democrats would remove from the bill a $50 billion industry-supported fund that would be used to wind down failing firms.
3:42 AM 04/29/2010
End of the financial reform stalemate. Republicans announced that they had achieved resolution of bailout loopholes on the financial regulatory reform bill Wednesday afternoon. "Now that bipartisan negotiations have ended, it is my hope that the majority's avowed interest in improving this legislation on the Senate floor is genuine and the partisan gamesmanship is over," said Senate Minority Leader Mitch McConnell, Kentucky Republican, in a statement. After failing to move forward on Monday and Tuesday on the financial reform bill by the exact same vote, Senate Majority Leader Harry Reid, Nevada Democrat, scheduled another vote on Wednesday which was promptly defeated as well. The count Wednesday was 56-42 with Senator Nelson, Nebraska Democrat, and Reid voting against the measure. Reid's "no" vote allows him to bring it up again. A vote later Wednesday, after Democrats threatened to hold an all-night session, succeeded in getting Republicans to drop their filibuster.
4:04 AM 04/28/2010
First Senate Move on Financial Reform Defeated - Despite control of the White House, the House and the Senate, and almost 70% of the country supporting financial reform, the Democrats could not prevail on a crucial financial services vote Monday. The first vote to move along the financial reform bill was defeated 57 to 41, with 60 votes needed. While the press today is full of attacks for Republicans voting (as did the Democrats) along party lines, a major cause for the loss was the fact that Democrat Ben Nelson (D-Neb) voted with the Republicans against the financial reform bill.
3:25 AM 04/27/2010
Financial reform: the first vote - Reuters reports that Sen. Ben Nelson (D-Neb.) broke with party ranks on Monday and voted against opening Senate debate on a financial reform bill. Nelson's action means that the Democrats lack the votes to go forward and that the bill will be blocked, at least for now. Democrats must pickup at least two Republicans to prevail and clear the way for consideration of the bill. Sen. Richard Shelby (R-Ala.) said Monday morning the Republicans had the 41 votes they needed to stop Democrats from beginning debate on the Senate floor on a bill to overhaul financial regulation, but he suggested it was unclear how long the GOP unity would last.“I believe that 41 Republicans – for right now – are going to stand together. I wish we’d stand together, period.” Republicans know that there is a significant political price to pay for opposing financial reform; even if the opposition may be well intentioned. According to a new ABC News/Washington Post poll out Monday, 65% of adults surveyed nationwide said they support regulatory reform, while 31 percent oppose it. Sixty-nine percent said in the poll that they support “increasing federal oversight of the way banks and other financial companies make consumer loans, such as mortgages and auto loans, and issue credit cards.”
2:34 PM 04/26/2010
If the Senate bill passes, what's next? - The Senate will vote today on its first steps toward passing a financial reform bill. Any financial reform bill that passes the Senate still needs to be reconciled with the House bill. Bloomberg reports two major -- but manageable -- differences between the House and Senate version. The Senate bill includes a plan to study how to implement Obama’s "Volcker Rule" banning proprietary trading by banks, named after former Fed Chairman Paul Volcker, who’s advising the president. The administration came up with the Volcker rule after the House had passed its bill. The Senate bill permits such a ban when the Fed finds a threat to the safety and soundness of the company or to national financial stability. Both bills propose a Consumer Financial Protection Agency; the Senate bill has the consumer protection bureau at the Fed, and the House bill proposes a standalone agency.
4:15 AM 04/22/2010
GM proudly reported on Wednesday that General Motors Co. repaid $5.8 billion to the U.S. Treasury and Export Development Canada. GM Chief Executive Ed Whitacre wrote in the Wall Street Journal that the company is paying back the loans “in full, with interest, years ahead of schedule." Whitacre said no one — neither taxpayers nor the company itself — was happy that GM needed government loans. “We believe we can best thank the citizens of the U.S. and Canada by making sure that their investments are hard at work every day, building high-quality, fuel-efficient vehicles our customers can count on,” Whitacre wrote.
3:37 AM 04/21/2010
A new feature begins today, which will provide insight into the connection between politics and business. At a time when the major political initiatives are health insurance, financial reform and regulating emissions, perhaps Washington politicos could use a fresh perspective — a business perspective.
2:45 PM 01/18/2010
President Obama is now saying that "we've recovered most of your money already, but we want all our money back." Does anyone really know how much money is out and how much is back? Is there money left on the table?
4:59 PM 01/14/2010
It's almost too bizarre to believe, but banks that received taxpayer money because they had toxic assets on their books have actually been buying more toxic assets from other banks, to sell back to the very government that provided them assistance.
