April 21st, 2010
02:15 PM ET
10 years ago

Senate committee approves Wall Street reform bill

 Senate Minority Leader Mitch McConnell said Tuesday that he is ‘heartened to hear that bipartisan talks’ on Wall Street reform ‘have resumed in earnest.’

Senate Minority Leader Mitch McConnell said Tuesday that he is ‘heartened to hear that bipartisan talks’ on Wall Street reform ‘have resumed in earnest.’

Washington (CNN) - A Senate committee on Wednesday passed a proposal aimed at helping protect the economy from future meltdowns and taxpayers from more Wall Street bailouts.

The Senate Agricultural Committee voted 13-8 in favor of the bill, which would impose regulations on the complex system of Wall Street trades known as derivatives. Senate leaders now will look at merging the measure with a financial regulations reform bill already passed by the Senate Banking Committee that is headed for debate by the full chamber.

Sen. Chuck Grassley of Iowa was the lone Republican to vote with Democrats on the agriculture panel for the bill. While Wednesday's hearing was but one step in the legislative process, it could provide part of the framework for a congressional deal on financial reform legislation - a major priority of the Obama administration.

Republican senators who last week expressed unanimous opposition to the Banking Committee's bill now, after continued negotiations, say a compromise is possible.

"Both sides have expressed a willingness to make the changes needed to ensure without any doubt that this bill won't put taxpayers on the hook for future bailouts of Wall Street banks," Senate Minority Leader Mitch McConnell, R-Kentucky, said Tuesday. "I'm heartened to hear that bipartisan talks have resumed in earnest."

The committee chair, Sen. Blanche Lincoln, D-Arkansas, opened the hearing by saying the legislation would confront "tough problems" in trying to increase regulation of Wall Street trading.

Lincoln, a moderate Democrat who is expected to face a tough re-election campaign this year, called the proposal "a robust package that balances the needs of strong, meaningful reform and recognizes the needs of these markets."

"This bill will bring 100 percent transparency to a currently unregulated, dark market," she said.

The House has passed its version of a finance reform bill, and now Democrats seek to bring a Senate version up for chamber debate.

The bill approved by Democrats on the Senate Banking Committee would set up new regulatory oversight of financial industry practices with the goal of preventing another Wall Street meltdown like the one in 2008 that launched the U.S. recession.

It includes an "early warning" system intended to spot signs of another crisis, as well as a $50 billion liquidation fund created with money from banks and other finance industry corporations to ensure an orderly transition in closing down failing entities.

Filed under: Financial Reform
soundoff (59 Responses)
  1. Ferret out the BS

    Hopefully the concept of compromise is not just lip service....from both sides.

    April 21, 2010 01:11 pm at 1:11 pm |
  2. Dutch/Bad Newz, VA

    Mr. McConnell, shut up! You were against the bill before it was even written. You're the biggest hypocrite of them all. I can see through that phony smile of yours. You are playing politics while everyone else is trying to get work done. Leave the politics up to Michale Steele and you focus on governing.

    April 21, 2010 01:11 pm at 1:11 pm |
  3. Texas Doc

    Wow, so defending Wall Street isn't popular? Or, is it that after getting your butts handed to you on Health Care you are trying to become more than the party of 'no'. Who's your daddy Mitch?

    April 21, 2010 01:12 pm at 1:12 pm |
  4. annie s

    After "negotiations" or after McConnell was proven to be a liar and in bed with Wall Street?

    April 21, 2010 01:12 pm at 1:12 pm |
  5. Average American

    Thank you Sen. Grassley for behaving like an adult!

    April 21, 2010 01:13 pm at 1:13 pm |
  6. Tony

    And it will be filibustered and there's pretty much no way that this can be passed through reconciliation.

    I'm just wondering how nasty and sleazy Obama will become to try and get this one passed, assuming that he could be even more nasty and sleazy than he already is.

    April 21, 2010 01:18 pm at 1:18 pm |
  7. FM

    There are a lot from the opposition side who do not know what they are saying and doing. One of them is Mitch McConnell. Its time to retire Mitch!

    April 21, 2010 01:20 pm at 1:20 pm |
  8. Duck Fallas

    What happened to "no cooperation for the rest of the year?" ...stay tuned.

    McConnell is one goofy looking dork.

    April 21, 2010 01:22 pm at 1:22 pm |
  9. LacrosseMom(the real one)

    IF Congress does not reign in the Banks and Wall Street, we will see another economic disaster and this time we may not recover.

    I urge everyone GOP or Democrat & Independent, to please read, do research and inform yourselves about this very important undertaking.

    Regulations protect consumers, investors. If you have a 401K this is important for you!

    April 21, 2010 01:23 pm at 1:23 pm |
  10. Anonymous

    McConnell must have finally read the proposed bill to see thatthe taxpayers were not on the hook for bailouts.
    As of last week we know he had not since he thought it contianed governement funding ofr future bailouts.
    Typical poltians- speak first – facts later.

    April 21, 2010 01:25 pm at 1:25 pm |
  11. Blkman

    Wo the many DECIETFUL faces of the GOP. What a joke, so like don't be "for the bill" vote against, whatever..............Novemeber isn't too far away and at least everyone is watching.

    April 21, 2010 01:27 pm at 1:27 pm |
  12. Jeff Spangler, Arlington, VA

    The derivatives market is a black hole containing around $450 trillion (almost half a quadrillion) inhabited only by shadowy bankers like the ones who brought the world financial system to a screeching halt a short time ago. Anyone who thinks there is no need for regulation is as dumb as Allen Greenspan, who trusted markets to police themselves.

    April 21, 2010 01:31 pm at 1:31 pm |
  13. Gary a proud Canadian

    Mc Connell is such a two faced loser. Morons like this is why the republican party and their policies or lack of them are so despised world wide.Vote for a republican and step back 2 years in time. NO THANKS.

    April 21, 2010 01:32 pm at 1:32 pm |
  14. Ron , West Coast

    It`s about time that those unamerican elected rethuglican thugs start earning the salaries , and perks that they recieve from taxpayers like me .

    April 21, 2010 01:35 pm at 1:35 pm |
  15. brian

    Mcconnell is a partisan hack- The negotiations were never stopped and even Corker had to give a thinnly veiled public rebuke to him!!! david Frum ( A Bush Speechwriter) Has called the GOP, obstructionist, "take all the marbles or none " approach – a dismal failure !!! In the past both parties offered blocks of votes to steer legislation- Todays GOP have steered a reckless path of No No No - trying to craft Obama's Waterloo .
    Obstruction is not governance- If the GOP wishes to truly act in America's interest - they should consider changing lanes, and put Country above Party!!! Till they do that i will consider their obstruction as Anti Country!!!!

    April 21, 2010 01:37 pm at 1:37 pm |
  16. Steve

    So..the Republicans heard the American people LOUD AND CLEAR and now think it is in THEIR best interest to support the bill...so much for principles!

    April 21, 2010 01:40 pm at 1:40 pm |
  17. joel palmer

    Whoops; gop figured out the only thing people hate worse than politicians is...

    Flip flop

    Flip flop

    GOP sucks

    April 21, 2010 01:42 pm at 1:42 pm |
  18. Michael

    Repuglicans have that "party of no" thing going strong right now! I just could imagine, if they were back in charge again! The State of Arizona is a good example of what direction this country would be going backwards! They regularly participate in knee jerk reactions. How the Republicans have crowed about the Democrats running the whole show in Congress. Now look at what happens when the Republicans run everything in Arizona, house, senate, and the governor. Look at the nasty legislation that emerges. IF AMERICANS WILL TRUST REPUGLICANS TO RUN THIS COUNTRY AGAIN, THEN WE ARE IN SERIOUS TROUBLE, ECONOMICALLY, POLITICALLY, AND DIPLOMATICALLY! "GOD HELP US"

    April 21, 2010 01:43 pm at 1:43 pm |
  19. george wheeldon

    Why doesn't McConnell get lost with all of his lies about a bailout? Even his own party outed him as a liar.

    April 21, 2010 01:44 pm at 1:44 pm |
  20. Claudia, Houston, Tx

    McConnell is incompetent, instead of reading the finance reform bill for himself, he chose to meet with Texas Republican Cornlyn who misled him and told him to vote NO and thenmeeting with Wall Street Bankers who also told him to vote NO. What else is McConnell and people in the GOP like Cornlyn aren't reading or can they read. o wonder they support someone lik Palin, they are as ignorant as she is.

    April 21, 2010 01:45 pm at 1:45 pm |
  21. Ken in NC

    Senate Minority Leader Mitch McConnell, R-Kentucky, does not realize that bipartisianship takes place when one member of the opposite party sides with his opposition. NOw that that has been done McConnell looks like an idiot. Probably because he is an idiot.

    April 21, 2010 01:45 pm at 1:45 pm |
  22. rta

    if boehner and mcconnell are retired, more things would get done in congress, they continue to want to obstruct and delay, I think the rest of the republican house and senate members out to get a backbone and show their leadership they work for all Americans.

    April 21, 2010 01:45 pm at 1:45 pm |
  23. David

    The Dodd bill already has language to prevent another bailout. McConnell got caught lying so he's trying to paint a picture of the GOP coming to the rescue. The GOP desperately needs new leadership. There are some members of the GOP who are sane and would be willing to help govern if they weren't stuck with the 'just say no' strategy taken by their 'leaders'.

    April 21, 2010 01:45 pm at 1:45 pm |
  24. Annie, Atlanta

    So all that lying by Mitch McConnell last week didn't work, and he backed down? Next I'd like to see him do something, anything, to earn that salary we pay him.

    Ok, to the good people of Kentucky: What are you thinking with this guy? If you want a Republican, fine – you get to chose who best represents all of you. But isn't there one that at least gives a darn about you, and won't lie to protect his/her own bottom line?

    April 21, 2010 01:45 pm at 1:45 pm |
  25. rta

    I think the rest of the republican house and senate members ought to get a backbone and show their leadership they work for all Americans and more things would get done.

    April 21, 2010 01:46 pm at 1:46 pm |
1 2 3