bobbyw24
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- Sep 10, 2007
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A group of Democrats friendly to Wall Street interests forced a delay in consideration of the landmark financial regulatory reform bill scheduled to hit the House floor on Wednesday, Financial Services Committee Chairman Barney Frank (D-Mass.) told reporters in the Speaker's lobby.
Frank accused the New Democrat Coalition of blocking the bill because its members are being prodded by big banks to abolish the Consumer Financial Protection Agency and to allow major financial institutions to avoid state laws tougher than federal regulations.
A Democratic leadership aide confirmed that centrist and conservative Democrats are threatening to vote no on the bill, leaving the caucus short of the needed votes
"The big banks in particular are trying to get more preemption," said Frank. "It's a state-consumer battle with the big banks. We want compromise. They want to offer an amendment that makes it easier to preempt state consumer laws."
New Dem Vice Chair Melissa Bean (D-Ill.) is demanding that her preemption amendment, which would in effect mean that state regulations on the financial industry could be no tougher than federal guidelines, be given a vote on the House floor. It was first beaten back in committee in October.
Bean and other advocates of preemption say that creating uniform national standards is preferable to allowing each state to make different rules. States with stringent regulations, however, closely guard their right to set rules -- and federal regulators have been less than adept over the past several years.
Blue Dog Rep. Walt Minnick (D-Idaho) is also pushing an amendment that would abolish the CFPA, a top priority of the administration and the brainchild of Harvard professor Elizabeth Warren, said Frank.
Minnick worked to defeat the CFPA in committee but was unsuccessful. While the House sits in recess, leadership and opponents of reform within the caucus are negotiating their way out of the deadlock.
When a bloc of Democrats wants to exert its influence in an extreme way, it threatens to "take down the rule" -- legislative lingo for, in effect, blocking consideration of the bill on the floor.
When Frank was first asked whether Democratic leadership had the votes it needed to proceed on the floor, six loud bells rang out.
"Do you know what you're listening to now?" asked Frank. "They're now sounding six bells. Do you know what that means? It means a recess. What do you think, the kids have to go out and play in the yard? That's your answer."
Minority Leader John Boehner (R-Ohio) told HuffPost he had the same political instincts. "If they had the votes, we'd be out there debating the rule," said a smiling Boehner. "It's that simple."
http://www.huffingtonpost.com/2009/12/09/bank-friendly-dems-shut-d_n_386200.html
Frank accused the New Democrat Coalition of blocking the bill because its members are being prodded by big banks to abolish the Consumer Financial Protection Agency and to allow major financial institutions to avoid state laws tougher than federal regulations.
A Democratic leadership aide confirmed that centrist and conservative Democrats are threatening to vote no on the bill, leaving the caucus short of the needed votes
"The big banks in particular are trying to get more preemption," said Frank. "It's a state-consumer battle with the big banks. We want compromise. They want to offer an amendment that makes it easier to preempt state consumer laws."
New Dem Vice Chair Melissa Bean (D-Ill.) is demanding that her preemption amendment, which would in effect mean that state regulations on the financial industry could be no tougher than federal guidelines, be given a vote on the House floor. It was first beaten back in committee in October.
Bean and other advocates of preemption say that creating uniform national standards is preferable to allowing each state to make different rules. States with stringent regulations, however, closely guard their right to set rules -- and federal regulators have been less than adept over the past several years.
Blue Dog Rep. Walt Minnick (D-Idaho) is also pushing an amendment that would abolish the CFPA, a top priority of the administration and the brainchild of Harvard professor Elizabeth Warren, said Frank.
Minnick worked to defeat the CFPA in committee but was unsuccessful. While the House sits in recess, leadership and opponents of reform within the caucus are negotiating their way out of the deadlock.
When a bloc of Democrats wants to exert its influence in an extreme way, it threatens to "take down the rule" -- legislative lingo for, in effect, blocking consideration of the bill on the floor.
When Frank was first asked whether Democratic leadership had the votes it needed to proceed on the floor, six loud bells rang out.
"Do you know what you're listening to now?" asked Frank. "They're now sounding six bells. Do you know what that means? It means a recess. What do you think, the kids have to go out and play in the yard? That's your answer."
Minority Leader John Boehner (R-Ohio) told HuffPost he had the same political instincts. "If they had the votes, we'd be out there debating the rule," said a smiling Boehner. "It's that simple."
http://www.huffingtonpost.com/2009/12/09/bank-friendly-dems-shut-d_n_386200.html
