wildcard
6th May 2010, 10:16 PM
http://www.politico.com/news/stories/0510/36905.html#ixzz0nCsNJXUf
Democrats defeat GOP alternative on consumer agency
http://images.politico.com/global/news/100506_bernie_sanders_shinkle_218.jpg
Sen. Bernie Sanders, the chief sponsor, struck a deal on the Senate floor to limit the scope of the audit to only the Fed’s emergency lending activities.
Senate Democratic leaders cleared two major obstacles Thursday to winning passage of a Wall Street reform bill, beating back a Republican effort to curb the reach of a new consumer agency and striking a compromise on a watered-down bill to shine a light on Federal Reserve activities.
Democrats dispensed with the GOP's measure on a new consumer protection agency comfortably, bolstered by a statement from President Barack Obama that the Republican plan was "worse than the status quo."
But it took an aggressive last-minute lobbying effort by White House, Treasury and Federal Reserve officials to win a compromise on the Fed amendment. The original language called for a "comprehensive" audit of the Fed's activities, most of which historically have been kept from public view.
Sen. Bernie Sanders (I-Vt.), the chief sponsor, struck a deal on the Senate floor to limit the scope of the one-time audit to only the Fed's emergency lending to banks, allaying concerns that a review would have interfered with interest rate decisions.
"At a time when our entire financial system almost collapsed, we cannot let the Fed operate in secrecy any longer. The American people have a right to know," Sanders said. "This amendment is not a radical idea."
The Senate had been set to vote on the Fed amendment late Thursday but Republicans requested a delay until at least Tuesday.
Senate Majority Whip Dick Durbin (D-Ill.) said Republicans wanted to make sure Sen. Bob Bennett (R-Utah), who has been campaigning in his state ahead of a nominating convention Saturday, wouldn't miss the vote. But a Republican leadership aide disputed Durbin, saying Sen. David Vitter (R-La.) wanted time to draw up an alternative to the new Sanders amendment, which some in the GOP viewed as "gutted."
The original Fed amendment had gained broad support in the Senate - and a version is included in the House legislation. But if it had survived the Senate intact, Obama might have been forced to veto the entire bill.
Sanders told POLITICO Thursday night that the compromise included "very minor modifications, which in some ways strengthen the bill." He pointed to provision requiring an audit of Fed bank governance, including whether the bank directors effectively represent the public and whether the election of bank directors presents a conflict of interest.
But Rep. Ron Paul (R-Texas), who teamed up with Sanders on the issue, slammed the compromise on his Facebook page. Paul wanted the audit to include the Federal Open Market Committee, which sets interest rates.
"Bernie Sanders has sold out," Paul wrote. "We need to take action and stop this!"
Bernanke sent a letter to Dodd Thursday saying he had "deep concern" that expanding audit powers to the General Accounting Office would "seriously threaten monetary policy independence, increase inflation fears and market interest rates, and damage economic stability and job creation."
...
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Read more: http://www.politico.com/news/stories/0510/36905.html#ixzz0nDZ1UKNO
Democrats defeat GOP alternative on consumer agency
http://images.politico.com/global/news/100506_bernie_sanders_shinkle_218.jpg
Sen. Bernie Sanders, the chief sponsor, struck a deal on the Senate floor to limit the scope of the audit to only the Fed’s emergency lending activities.
Senate Democratic leaders cleared two major obstacles Thursday to winning passage of a Wall Street reform bill, beating back a Republican effort to curb the reach of a new consumer agency and striking a compromise on a watered-down bill to shine a light on Federal Reserve activities.
Democrats dispensed with the GOP's measure on a new consumer protection agency comfortably, bolstered by a statement from President Barack Obama that the Republican plan was "worse than the status quo."
But it took an aggressive last-minute lobbying effort by White House, Treasury and Federal Reserve officials to win a compromise on the Fed amendment. The original language called for a "comprehensive" audit of the Fed's activities, most of which historically have been kept from public view.
Sen. Bernie Sanders (I-Vt.), the chief sponsor, struck a deal on the Senate floor to limit the scope of the one-time audit to only the Fed's emergency lending to banks, allaying concerns that a review would have interfered with interest rate decisions.
"At a time when our entire financial system almost collapsed, we cannot let the Fed operate in secrecy any longer. The American people have a right to know," Sanders said. "This amendment is not a radical idea."
The Senate had been set to vote on the Fed amendment late Thursday but Republicans requested a delay until at least Tuesday.
Senate Majority Whip Dick Durbin (D-Ill.) said Republicans wanted to make sure Sen. Bob Bennett (R-Utah), who has been campaigning in his state ahead of a nominating convention Saturday, wouldn't miss the vote. But a Republican leadership aide disputed Durbin, saying Sen. David Vitter (R-La.) wanted time to draw up an alternative to the new Sanders amendment, which some in the GOP viewed as "gutted."
The original Fed amendment had gained broad support in the Senate - and a version is included in the House legislation. But if it had survived the Senate intact, Obama might have been forced to veto the entire bill.
Sanders told POLITICO Thursday night that the compromise included "very minor modifications, which in some ways strengthen the bill." He pointed to provision requiring an audit of Fed bank governance, including whether the bank directors effectively represent the public and whether the election of bank directors presents a conflict of interest.
But Rep. Ron Paul (R-Texas), who teamed up with Sanders on the issue, slammed the compromise on his Facebook page. Paul wanted the audit to include the Federal Open Market Committee, which sets interest rates.
"Bernie Sanders has sold out," Paul wrote. "We need to take action and stop this!"
Bernanke sent a letter to Dodd Thursday saying he had "deep concern" that expanding audit powers to the General Accounting Office would "seriously threaten monetary policy independence, increase inflation fears and market interest rates, and damage economic stability and job creation."
...
Continues at link:
Read more: http://www.politico.com/news/stories/0510/36905.html#ixzz0nDZ1UKNO