Democrats Seize on Financial Oversight

Source: NY Times

WASHINGTON — With the Senate scheduled to begin debate on a financial overhaul bill this week, the fraud lawsuit against the Wall Street titan Goldman Sachs has emboldened Democrats to ratchet up pressure on Republicans who oppose the Obama administration’s proposal.

In a sign of the Democrats’ increasing confidence that they have the better of the argument in an election year defined by voter anger at big banks and bailouts, White House officials said Sunday that President Obama would take his campaign for a regulatory overhaul on the road in coming weeks.

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Republicans might remain united on the Democrats’ first attempt to bring the bill to the Senate floor. But before long, some Republicans could break ranks and vote to permit debate, rather than risk filibustering tighter regulation of big financial institutions.

Several Republicans on the Senate Banking Committee have worked with Democrats on the committee for the last year on bipartisan legislation, despite Mr. McConnell’s intervention at times against their talks. Unlike their actions with the less popular health care bill, which Republicans felt free to try to block, Mr. McConnell and other leaders have been careful to profess their desire for better regulation of the financial system, and not to be seen as defending Wall Street — despite Democrats’ efforts to paint them that way.

Read more: http://www.nytimes.com/2010/04/19/business/19regulate.html

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Interestingly, the article asserts that Democratic efforts to crack down on Wall Street could result in a backlash against the Democrats in favor of Wall Street! Who knew? I guess we are going to have Tea Party rallies with common folk pledging to defend the big banks and investment firms! Down with the Democrats and long live financial derivatives?

"Mr. McConnell and other leaders have been careful to profess their desire for better regulation of the financial system, and not to be seen as defending Wall Street — despite Democrats’ efforts to paint them that way."

Really?

I am sure we can debate just how strong derivatives regulations will be, but with the Republicans, they are opposing any and all regulations, particularly with respect to derivatives. Plus, you do no that Hank Paulson is no longer Treasury Secretary?