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. normajean

    I seriously think it's time for Mitch McConnell to retire. This man is a loser. He says the same things over and over, talks about working with the Democrats and then reverses himself. he"s beginning to not make any sense. His "buddies" Cantor and "The Tangerine man" aren't any better.Things ran quite smoothly when they were all in recess. Move on boys, you've had your 15 minutes.

    April 21, 2010 01:48 pm at 1:48 pm |
  2. marlene

    CNN, your article will go far in confusing the electorate, in that you've mixed the Ag bill proposal with the banking committee bill proposal. Maybe Sen. McConnell read your media reports and that is why his talking points don't make sense. Marlene in Mich

    April 21, 2010 01:48 pm at 1:48 pm |
  3. Sniffit

    "socialist dictatorship."

    Raise your hand if you know how to spot an oxymoron talking point uttered by a misinformed uneducated malcontent who lives, sleeps and breathes receiving angry Limbaugh ideological vomit through the antennae on his tinfoil hat.

    April 21, 2010 01:48 pm at 1:48 pm |
  4. Chuck

    Poor republicans...caught between what their bosses want and what the people want. This will be the bipartisan success on everyone's minds when November rolls around, just like the Dems planned it. They're going to spend the next 6 months slamming Wall Street and the people are going to love it. Wonder what the tea baggers will talk about then...probably immigration.

    April 21, 2010 01:49 pm at 1:49 pm |
  5. Mihael

    Thats another victory not only for Obama admin but the american people who still feel the fianacial melt down brought by the republicans led by G.Bush...

    April 21, 2010 01:55 pm at 1:55 pm |
  6. Sniffit

    In keeping with my point below about oxymoron talking points and conservatives' self-contradiction in general, just keep in mind that the entire time the GOP is claiming that trickle-down economics is not a fairy tale brainfart designed to placate the uninformed indentured servant masses...much like most of institutionalized religion (and if you'd like to draw out the parallels between GOP market theory and religion, I won't stop you)...it is defending Wall Street and the instruments, particualrly derivatives, that make the economy a one way street on which all money travels up to the already wealthy, and then stays there while they play with it to generate more for themselves....all while keeping the vast majority of America on the same average salary for several decades despite massive inflation overall and even worse inflation in particular market, such as health care. But don't worry, the GOP will save you by making us an insular corporate theocracy with closed borders...sort of like Iran, but with everyone carrying a gun....saved, right?

    April 21, 2010 01:57 pm at 1:57 pm |
  7. TOM MCGEE

    Mitch talking out of both sides of his mouth again. he can't win at any thing any more thank GOD. now just love to see him lose his senate
    along with our ohio MR No Boehner

    April 21, 2010 01:58 pm at 1:58 pm |
  8. Tony

    The party of no is going to say maybe?

    April 21, 2010 02:00 pm at 2:00 pm |
  9. Nadeem

    Most of the TARP money is repaid, GM has paid back its loan, the economy is growing, the economy is creating jobs, the DOW is soaring (except got Goldman Sacs, healthcare is reformed, the pullout of Iraq has begun, we are winning in Afganistan, financial reform is headed for passage, arms deal with Russia.

    Not bad for two years, a do something congress – now that's change we can beleive in.

    April 21, 2010 02:01 pm at 2:01 pm |
  10. Mitch

    I guess the GOP senators woke up to realize that Americans WANT and NEED this reform. They are about to lose the election because of their stronger stand for Wall Street than Main street.

    Notice Palin is silent on this issue? Hmmmmmm

    April 21, 2010 02:02 pm at 2:02 pm |
  11. truth

    The American citizens should be picketing on McConnell and Boehner's lawn. These men need to be thrown out of office. It is republicans like Boehner, Mcconnell, Lindsay Graham, and many others who are trying to destroy the country. Talk about anti-Christ. Republicans are the cains of the world. How in the hell do they sleep at night?

    April 21, 2010 02:02 pm at 2:02 pm |
  12. educated

    Now that's how my government should work. Let's find some common ground and move forward!

    April 21, 2010 02:04 pm at 2:04 pm |
  13. K

    How anyone could be against reforming Wall Street is beyond me. Republican, Democrat, Independent, Tea Partier...whatever your affiliation, you MUST have a desire to make it incredibly difficult if not impossible for these financial super powers to bring down the world economy again. They say history repeats itself, but I say that it doesn't have to.

    April 21, 2010 02:06 pm at 2:06 pm |
  14. Victim of GOP Taliban

    McConnell is talking out of both sides of his mouth. Only one Republican voted for it. In reality the Republicans are stalling for time and trying to collect as much $ as they can from the special interest lobbyist. Brown and the other stooges are using the usual fearmonger and lies to promote obstructionism.

    April 21, 2010 02:08 pm at 2:08 pm |
  15. Florida Joe

    Go ahead McChinless try to save face on this one..........Too bad your deal with the bankers got exposed...............You need to GO AWAY

    April 21, 2010 02:08 pm at 2:08 pm |
  16. SuperHiro

    Knew the GOP couldn't hold that position for long. They'll fall in line for this particular piece of legislation.

    April 21, 2010 02:12 pm at 2:12 pm |
  17. JAB

    I just watched Judd Gregg on CNN talking about how we can't do anything because all our derivatives will go overseas.

    My response to Judd: Talk as slick as you want. We've seen the results–the Bush-GOP depression with huge bailouts for the wealthy while the middle class got stomped–lost jobs, homes, health care, and retirement funds.

    I'd say to President Obama and the congress: Regulate derivatives, no matter how much industry advertising, the hundreds of industry lobbyists, and the congresspeople they own try to slick talk us all.

    April 21, 2010 02:13 pm at 2:13 pm |
  18. Anonymous

    What in the negotiations changed the minds of those republican senators who last week were unanimously opposed to it? Anytime you hear something like that you know deals are being made. Usually ones that benefit the big banks/companies and not the taxpayer. It needs to include these words in all Caps: TAXPAYERS WILL NEVER HAVE TO BAIL OUT ANOTHER BANK OR COMPANY EVER AGAIN!

    April 21, 2010 02:17 pm at 2:17 pm |
  19. Mike, Albany

    Since the birther blog is closed for comments, I'll comment on it here. Evidently, we need legislation that requires all candidates to show their high school and college transcripts and the results of the IQ test in order to prove that they are not too stupid to run for public office. Do that, and 90% of these idiots will be ineligible to run. Until that happens, this is exactly the kind of thing they should be spending their time on because G-d help us if they actually try to enact real legislation.

    April 21, 2010 02:20 pm at 2:20 pm |
  20. Curt

    The Repub's will end up opposing this bill because they have to. To support it would be to admit that the Dem's had a good idea and if the Repub's do that they alienate the teapotters. They will support the bill right up to the time they decide to oppose it like usual. Just watch, they will turn.

    April 21, 2010 02:20 pm at 2:20 pm |
  21. ray

    mitch is a first class liar and the morn cannot lie. someone please, please, please round up all the racists on the right and in some way make them just vanish off the face of the earth. please. anyone who says these people on the right along with the tea party are not racists, some thing is really wrong with that person. see what they dont in arozana?? they still dont think this president is an american, they want an all white country the same country they stole from the real americans they are shouting they want there country back.

    April 21, 2010 02:26 pm at 2:26 pm |
  22. Larry

    That's a good picture of two of the most corrupt individuals in Washington....Boehner and McConnell.

    Of course they didn't vote for financial reform.

    April 21, 2010 02:28 pm at 2:28 pm |
  23. Gymo

    Mitch, trying to save face much!

    The Democrats should keep the pressure on the Republicans, let them know they can't be elected by the people and work for Wall st. at the same time.

    April 21, 2010 02:32 pm at 2:32 pm |
  24. Sgt. USMC

    I am interested in what McConnell suggest should be changed on this bill. I think he just wanted to play politics and act like he is fighting for the people. We need to get rid of this liar.

    April 21, 2010 02:33 pm at 2:33 pm |
  25. Bertina

    Republicans can read the tea leaves and it's telling them they better at least look like they want the reform.

    April 21, 2010 02:33 pm at 2:33 pm |
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