The useless party is going to cut a deal with the evil party:
A proposal by former Federal Reserve Chairman Paul Volcker to limit bank’s proprietary trading will be either be dropped or significantly modified in the Senate, lawmakers and staffers told dealReporter.
Senate Banking Committee ranking member Richard Shelby (R-AL) said he opposes the so-called Volcker rule and the Obama administration’s call to levy a USD 90bn tax on banks. His comments come as House Financial Services Committee Chairman Barney Frank (D-MA) predicted the proposals outlined by President Obama could be law within six months.
Speaking to this news service on Thursday, Shelby said if Democrats push forward with the proposals they risk unravelling much of the bipartisan support already reached regarding the passage of financial regulatory reform in the Senate. Shelby said that the Obama administration risks losing Republican support for the bill if they begin to “politicise” the issue.
However, Shelby said he expects to hold a meeting with Banking Committee Chairman Chris Dodd (D-CT) regarding the way forward on regulatory reform in two weeks time. A Democratic banking committee staffer confirmed that the meeting between Dodd and Shelby will be critical as Dodd needs to determine the level of bipartisan agreement and the timing of bringing the bill through committee and on the Senate floor.
Not only will watering down the bill in the name of bipartisanship not give us the needed regulatory restructuring that we need, but it is also politically stupid in another way. Let the Republicans come out opposed to regulating the market and the bankers and then beat them to death with it in the fall. Passing a shitty bill with their support blurs the distinctions between the parties.
But then again, given that some of the Democrats are almost as beholden to corporate interests as the Republicans, there really isn’t much to blur, is there? There really isn’t anything quite as worthless as the US Senate, is there?