May 5th, 2010
03:44 PM ET
12 years ago

Key senators agree on too big to fail deal

[cnn-photo-caption image= caption="Sens. Shelby, left, and Dodd, right, have reached an agreement about one aspect of the financial regulatory reform bill."]
Washington ( - Top senators on the banking panel released the details of a bipartisan deal on how to unwind big financial firms that are considered too big to fail.

Sen. Christopher Dodd, D-Conn., said he's finished making changes to an amendment to the Wall Street reform bill that concerned Republicans like Sen. Richard Shelby, R-Ala.

Dodd and Shelby reached an agreement in principle last week, and now the Senate will vote on this amendment later this afternoon.

Among the more significant changes, Democrats are officially dropping the tax on banks that would have funded a $50 billion pot of money that regulators could tap to help take down failing banks. Now the bill stipulates that banks will be taxed to pay unwinding banks after a collapse.

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Filed under: Chris Dodd • Financial Reform • Richard Shelby • Senate • Wall Street
soundoff (12 Responses)
  1. D.

    The real institutes that are "too big to fail" which have been failing again and again are...... the two major political PARTIES!!!!!!!!!!!!!!!!!!!!!

    May 5, 2010 03:50 pm at 3:50 pm |
  2. Duck Fallas

    So, instead of taxing the banks in the event of a failure, they're going to tax the banks in the event of a failure.

    That's much better.

    May 5, 2010 04:02 pm at 4:02 pm |
  3. geoff

    It would be more interesting to let a "too-big-to-fail" go ahead and fail. The temporary fallout discomfort would not even begin to compare with the queasiness that would be left in the belly of cavalier CEOs who think the fellow on Main Street will always be a comfy safety net.

    Failing that, bring back Glass-Stiegel and put some reasonable chains on these greedy clowns.

    May 5, 2010 04:12 pm at 4:12 pm |
  4. Stacie

    Good, can we get on with it then. Unless, of course, the GOP isn't done lying and obstructing progress yet.

    May 5, 2010 04:15 pm at 4:15 pm |
  5. dc

    Well.. chalk up another victory for the Obama Administration. The Republicans have no governering skills. President Obama can walk , run and chew gum at the same time. Government that works!

    Happy waterloo cinco de mayo to the Republicans Party of no!

    May 5, 2010 04:21 pm at 4:21 pm |
  6. Obama the liar

    why is Dodd still in the Senate and not in jail for being a bought and sold liberal?

    May 5, 2010 04:27 pm at 4:27 pm |
  7. Capt. Snarky

    I still can't believe that we are letting Dodd handle anything related to Finances. That just makes me shudder.

    May 5, 2010 04:29 pm at 4:29 pm |
  8. Chessnutz of Liverpool NY

    We already have the laws on the books right now that should have put a lot of Wall Street, AIG and Banking executives in jail for these crimes. But we have charged no one? Why?
    So we will increase spending, make a new agency and make new laws that we will not enforce going forward.

    May 5, 2010 04:37 pm at 4:37 pm |
  9. Carmelle

    Pre-fund vs Post-fund......WTH is the difference? This is for Repubs to save face of their lie!

    So can we say that they support post-bailouts? I bet Luntz would have suggested that if it were the Dems that proposed that.


    May 5, 2010 04:37 pm at 4:37 pm |
  10. Bottom Line

    How, exactly, is the bankrupt bank going to afford to pay for the divorce fund?

    This is how the GOP does Wall Street's bidding. They've avoided the contribution to the divorce fund and when needed the money won't be there and WILL fall on the taxpayers.

    May 5, 2010 04:46 pm at 4:46 pm |
  11. Rick McDaniel

    Tomorrow, they will say they still don't have agreement, and blame it on the GOP.

    May 5, 2010 05:32 pm at 5:32 pm |
  12. billybob 'n NC

    It doesn't matter, the re-pugs, complete with BURRRRRR, the ex-maverick, and Damint with still vote against it.

    May 5, 2010 05:33 pm at 5:33 pm |