March 15th, 2010
03:22 PM ET
4 years ago

Dodd: Time to reform Wall Street is now

Washington (CNNMoney.com) - The head of a key banking panel on Monday released a draft bill of sweeping regulatory changes aimed at warding off future collapses in the financial system.

The bill put forth by Senate Banking Committee chairman Christopher Dodd, D-Conn., would create a new consumer regulator housed inside the Federal Reserve aimed at ensuring consumers get a fair shake with mortgages and credit cards. It will also push banks and financial firms to strengthen capital cushions and create a new process to take down giant failing companies and prevent future Wall Street bailouts.

The bill would also includes a version of the controversial rule proposed by former Fed chairman Paul Volcker and heralded by President Obama aimed at prohibiting financial firms from owning hedge funds or from proprietary trading on their own accounts.

"We must plug the gaps and elliminate the inefficiences that allowed this crisis to happen in the first place," Dodd said in a news conference.

Dodd wants to push the bill through his committee next week, to ensure it gets to the Senate floor before the summer, because midterm elections could complicate getting a final agreement. The House passed a version of regulatory reform in December.

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Filed under: Chris Dodd • Senate
soundoff (44 Responses)
  1. Sniffit

    He's right, but the GOPers will cry because the last thing they want is for the Dems to pass health care reform AND something else that would help people too. Health care reform will likely squeek through this week, which means, as promised by Sen. Graham in his ever so gracious complete mischaracterization of a 100% legitimate Senate procedure that allows the majority to rule, the GOP will probably go so far as to stop showing up for work. Not that it makes much difference, seeing as how having them actually present doesn't result in them making any substantive contributions to the discussion anyway.

    Moving on....

    March 15, 2010 04:38 pm at 4:38 pm |
  2. Dano

    Does anyone else notice that any bill proposed by the Democrats that aims to help or protect American people is met by the same "pledging to slow its momentum" line by the Republicans, and that it's always the GOP siding with the Banking Industry, or the Insurance Industry, or the NRA, etc...?

    March 15, 2010 04:38 pm at 4:38 pm |
  3. Steve, New York City

    The people on Wall Street who "created disaster" with mortgages, credit default swaps and the like got fired a long time ago. . . Dodd is a blow-hard who thinks we're all stupid – he wants people to believe that everyone on Wall St is EXACTLY the same, whether they sell mortgages or trade currencies . . .some departments generate revenue SEVERAL TIMES the level of any bonus they pay out (but the last thing that Dodd wants is to actually educate people about this issue).

    March 15, 2010 04:39 pm at 4:39 pm |
  4. Fitz in Texas

    Why is this crook Dodd even in the news and most importantly why are we still paying his salary.

    March 15, 2010 04:44 pm at 4:44 pm |
  5. Steve- Illinois

    Dodd is the one who is in serious need of reform!

    March 15, 2010 04:45 pm at 4:45 pm |
  6. Phil

    Oh boy, one of the causes of the housing / banking collapse is now going to regulate Wall Street. The best thing these morons in DC could do is nothing.

    March 15, 2010 04:45 pm at 4:45 pm |
  7. mike in VA

    Dodd is one of the main reasons we're in this mess to begin with. Him and Barney Frank... We have the fox guarding the hen house.

    March 15, 2010 04:47 pm at 4:47 pm |
  8. Willy Brown

    You can start reform by putting Dodd's and Frank's in jail.

    March 15, 2010 04:50 pm at 4:50 pm |
  9. I WANT MINES

    YOU MISSED THE CHANCE FOR REAL REFORM

    if you had let them go under they would have reformed but you bailed them out and they still got HHHHHHUUUUUUUUUUUGGGGGGGGGGEEEEEEE
    BONUSES

    March 15, 2010 04:55 pm at 4:55 pm |
  10. DisgustedInvestor

    Since congressman Dodd was instrumental in putting loop holes in the last bank bail out legislation, I am wondering what "loop holes" the congressman has put into this bill?

    March 15, 2010 04:57 pm at 4:57 pm |
  11. mike

    where was this windbag 4 years ago? when he, and his cronies in congress (Barney Frank et al) were dismissing the Bush Administrations warnings of "fannie and freddie" risky business practices! thank goodness this blowhard is leaving congress....

    March 15, 2010 05:02 pm at 5:02 pm |
  12. awaitingliberalizationbyCNN

    Is Dodd sure the time is now? Perhaps if he waited a little bit, this Congress and the corrupt Obama administration could steal more of the retirement money those of us who actually accept personal responsibliity for our lives and follow the rules have been putting aside. I'm sure that the lazy dope smokers, that are spending their money on drugs and hip hop records will need it to continue not working and living off of their government checks.

    March 15, 2010 05:02 pm at 5:02 pm |
  13. Josiah

    time to reform Wall St. was well over a year ago – should been before Bush Bankrupted America with wars and tax cuts he & his Republican congress didn't pay for – but if not then, then it certainly was needed when Obama swept through with all that talk of change and changing Washington – but here we are a year into the Obama admin. and he's done nothing – absolutely nothing – I keep waiting for a grand plan from this joker, but nothing...

    March 15, 2010 05:08 pm at 5:08 pm |
  14. REG in AZ

    I for one won't surrender to manipulative appeals aimed at emotional loyalties that really are intended to coerce support for positions rationalized as being conscientious but once again really only favor the few. I won't vote for Republican, Democrat or Independent who doesn't demonstrate sincere honesty and genuine support for desperately needed reform (Health Care, financial, education, immigration, energy and importantly political), including the required firm regulations and real enforcement. There are those who literally put their political ambitions above all else and go to great length to deceptively justify obstructing any change, much needed change, with those efforts benefiting only Special Interests and the influential, powerful and extremely wealthy few, their strong overt and covert supporters. Their real interest is to return to 'more of the same' which literally got us where we are. While the solutions offered by the Democrats need honest and conscientious bipartisan fine tuning, blocking and obstructing or starting over really isn't any answer but rather only subterfuge. The problems aren't because the Democrats are spending; the Democrats are advocating spending because of the problems and doing nothing, continuing with 'more of the same' will only continue the problems and continue to grow the gap between the few very wealthy and the vast majority (including the upper middle class). We need to remember the mentality and what 'more of the same' is.

    Remember the arrogance, the mentality, the focus and remember the subterfuge aggressively pushed: Tax cuts for the wealthy benefits the economy; Global Warming is not a problem; Private Accounts for Social Security will solve the problems; The Bush admin did not minimize/ignore warnings before 9/11; There was sufficient solid and irrefutable real justification for attacking Iraq; Attacking Iraq didn't take away from the real effort in Afghanistan; Afghanistan was secure; Even though America has paid 95+% of the costs it wasn't a false coalition; Iraqi oil money will pay for the war; Pressure was not put on the intelligence community; Torture and departure from Geneva Convention rules was not authorized by the Bush Administration; Ongoing reporting on the status of the wars never misrepresented the truth to manipulate public opinion; No bid contracts to favored vendors totaling $100s of billions, was responsible use of taxpayers' money; Giving responsibility for our port security to Dubai Ports would not be a security risk; The humongous deficit and growing trade deficit are not problems; The administration did not react to the hurricane Katrina aftermath with apathy and irresponsibility; Bringing American drugs back into the US at lower costs would be unsafe; The Bush administration had nothing to do with exposing the CIA agent's identity; The squelching of the 'wiretapping without court order' story was done for national security reasons; Raising the security threat level just before an election in 2004 was not a political ploy; The financial problems are not problems of substantive deregulation and the lack of any responsible oversight thus favoring a few and resulting in unchecked greed, gross dishonesty and run-away self-indulgence by those few; Even though it is totally inconsistent with his sociopathic personality and actions GWBush was really a committed 'born again Christian'; it went on and on with these being just a few of the manipulative distortions offered totally without guilt or conscience, with arrogant disregard for the costs and with the complete support of the Republican Party, as if they could just do and say whatever they pleased. We really can't endure 'more of the same'!

    March 15, 2010 05:23 pm at 5:23 pm |
  15. Ricket

    If you every read the Wall Street Journal they have talked etensively about all of Dodd's reforms and not one of them did anything but hurt our country. Serve out the rest of your term quietly and get lost.

    March 15, 2010 05:26 pm at 5:26 pm |
  16. They call me "tater salad"

    No chris you're wrong, the time to reform Wall Street came and went about 5 years ago!!! But, thanks for the heads up anyway there, Captain Obvious! I just can't understand how or why these imbeciles get elected time after time............Mind boggling to say the least!!!

    March 15, 2010 05:33 pm at 5:33 pm |
  17. Kat

    I really don't think Dodd should be the one to try and reform anything. He's as big a crook and liar as BHO. They just want more control of our banks. Watch out America.

    March 15, 2010 05:35 pm at 5:35 pm |
  18. single mom

    What is it with the Democrats who are trying to shove everything they can through before they lose in November? Scared much? They should be. ALL incumbents should be. American voters are tired of the arrogance of the so-called political elite who think you have to have graduated from certain schools to be considered 'qualified', or that the government knows what's best for you.

    And Dodd, among others like Rangel, should not be allowed anywhere NEAR anything that reforms the financial system. Actually, that should be NO politican currently in office should be allowed to determine ANY reforms. Unless it's to pass term limits and paycuts for Congress.

    March 15, 2010 05:38 pm at 5:38 pm |
  19. BeverlyNC

    It sure is time – past time – to get these Wall St and large banks back under strict regulation. They have already returned to the same risky behavior they were doing before they collapsed our economy.

    If you don't want this to happen again, stand up and support re-regulation of the banks. They have ALWAYS been regulated until the Bush years and you saw how well that went.

    Republicans will fight the regulation and that proves once again they do not stand for the People. They only stand up for the abusive and greedy banks and insurance companies.

    Just watch the lying Republicans try to delay and stop regulation of the banks. Ask them why? Do they support the People who had to bail these failed corporations out or do they support these greedy banks who will destablize our economy again and expect more bailouts??

    Yes, Senator Dodd – the People want the banks re-regulated NOW so the taxpayers, stock holders, and consumer banking is not back where it was again when President Obama took office and had to clean up their mess.

    Stand up and demand regulation and call down Republicans for caring more about bailed out banks with obscene bonuses than for the middle class taxpayer who took the hit for ther actions.

    March 15, 2010 05:46 pm at 5:46 pm |
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