June 30th, 2010
01:19 PM ET
13 years ago

Wall Street reform bill back on track


 The House is expected to pass the sweeping package of reforms to the financial regulatory system later Wednesday, moving the bill a step closer to the finish line. (PHOTO CREDIT: Getty Images/File)

Washington (CNNMoney.com) - The House is expected to pass the sweeping package of reforms to the financial regulatory system later Wednesday, moving the bill a step closer to the finish line.

But Democrats won't make their self-imposed deadline of passing the bill by July 4 after a delay to find a different way to pay the $19 billion tab for the measure. Instead, the Senate is likely to take up the measure after it returns from the Independence Day recess during the week of July 12.

On Tuesday, Democratic leaders found a way to pay for the bill by hiking the premiums big banks pay for federal back-stop insurance on commercial deposits and ending the Troubled Asset Relief Program (TARP) to aid troubled institutions a few months early.

That plan replaced what was already in the bill – assessing big banks and hedge funds – because key moderate Senate Republicans, especially Sen. Scott Brown, R-Mass., didn't like the idea of passing a new "tax." The assessment was agreed to last week during the final 20-hour session to negotiate a final bill from the ones passed separately by the House and Senate.

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Filed under: Financial Reform • House • Wall Street
soundoff (16 Responses)
  1. johnnyhouse

    I can see a financial bill ran by the Senate being a success. Nothing else has worked the government had a hand in.If business operated as the government and tried to spend itself out of debt we would still be at Plymouth Rock waiting the next check.

    June 30, 2010 01:26 pm at 1:26 pm |
  2. Obama Supporter

    Just axe yourselves if you better off with precident Obama or that ol Bush. We smarter than them republicuns. How do those ol fools expext Obama to fix all problembs that Bush handed him. Obama has not been in office very long an you expext him to fix it already.

    Yall as bad as them Hilary supporters. Get over youselves, an leve my precident lone!!!!!!

    June 30, 2010 01:28 pm at 1:28 pm |
  3. Randolph Carter, I'm no expert, but...

    Whew! Close one. They almost snuck some real reform in. OK, congresscritters, you may proceed now. Have a nice day!

    June 30, 2010 01:28 pm at 1:28 pm |
  4. Jim

    Someone has to pay for this regulation, why not the banks? I don't think it should be the rest of us. We've already paid to bail banks out, now they can foot this bill. The Democrats ought to let the Republicans filibuster this so the country can see where their loyalty is.

    June 30, 2010 01:37 pm at 1:37 pm |
  5. ETM

    I'm glad this is back on track, even with a delay. The delay, of course, is due to just more Republican obstructionism.

    June 30, 2010 01:37 pm at 1:37 pm |
  6. Don't pass bad bills that don't help

    Vote out any idiot that votes for this bill. It does NOTHING to prevent the economic meltdown that was brought upon our nation by democratic lending policies and a lack of oversight of Fanny and Freddie–again, which are nowhere to be found in the bill.

    Oh, and it was written by Chris Dodd and Barney Frank–two people who failed at their jobs... allowing the recession.

    June 30, 2010 01:41 pm at 1:41 pm |
  7. REG in AZ

    Some have expressed concern that a small percentage of the people at the very top pay a heavy burden of taxes while some at the bottom pay nothing. While our tax code leaves a lot of room for improvement it is still hard to have much sympathy for those in the top couple of percentage points or to rationalize value in cutting taxes for them. Take the Bush reduction in dividend taxes as one example and then when looking at any corporate annual report check the executives compensation, perks, benefits, Golden Parachutes, stock and stock options. Besides having a compensation package that can’t ever be justified or earned they also have thousands, tens of thousands or even hundreds of thousands of shares of stock both owned and covered by gratuitously given stock options – making dividend tax cuts extremely beneficial for them, while meaning comparatively little to everyone else.

    These executives and directors, the ‘good ole boys’ club, literally control their own compensation in running the company and by voting their shares of stock. They also control and strictly limit everyone else’s compensation and benefits in their companies. As explained elsewhere tax cuts to the very wealthy simply does not have significant benefit to the economy (the ‘trickle down’ theory is really a fraud as they just don’t spend in ways to benefit the overall economy), so why do politicians want to focus heavily on and rationalize tax cuts for these few? Because of the obvious benefits from campaign contributions, overt and covert support, including financing third party action groups (like ‘Swiftboat’ and ‘Tea Party’) and even in after office compensation with speaking engagements, investment opportunities, book deals, employment and so on – they literally become owned and controlled ‘puppets’ for these extremely wealthy, powerful and influential individuals. George W Bush even bragged before leaving office that he would quickly pass his father and Bill Clinton in wealth from these ‘kickbacks’ and you can bet Sarah Palin is drooling over them. If you ever want real political reform, you have to get money out of politics.

    The real proof that it is a con to say there is an inequity is in recognizing that the gap between the very wealthy and everyone else just keeps expanding, that as their spendable income keeps growing everyone else’s’ keeps shrinking. I don’t begrudge anyone success, especially when it is really earned, but there is no need to ever shed a tear for these people.

    June 30, 2010 01:50 pm at 1:50 pm |
  8. Rick McDaniel

    Not much "reform" going on there. The banks still have tons of room to rip off the consumer.

    June 30, 2010 01:58 pm at 1:58 pm |
  9. Victim of GOP Taliban

    NO the Republicans are so smart...we have to let them have their way again so the banks can do whatever they want with no regulations and that is the magic solution. So what if the world economy goes into meltdown again and we lose millions of more jobs so the greedy elitists can make their $billions. Accordingly to the Neo-Confederate philosophy big $ lobbyists are always right and the government should not try to protect consumers.

    June 30, 2010 02:03 pm at 2:03 pm |
  10. vegage

    I really do not understand how republicans could be against making banks pay for their faults and mistakes that got us into all these troubles we are right now. I don't just think that they should pay the tax; I think the tax should be double of what it's being proposed. This is another example how republicans again area defending their patrons, which are the big business. I do not know how Americans can be so blind that they do not see who republicans really care about, just for your information, it is not the average American person.

    June 30, 2010 02:10 pm at 2:10 pm |
  11. Marcus

    The market DOES NOT regulate itself.
    Someone has to do the job, or we all have to get ready for the next Enron, the next Maddoff and the next 'bubble'.
    To those who have issues with the government meddling with what it's not his business, then please give us an alternative in which there is real accountability, real punishment for those who try to mess with other people's money and real visibility of what's going on in the market and how it is happening.
    If you can come with something like that, show us.
    If you can't, then please shows us the errors in this law and how they can be fixed. No 'just throw this law out!!!' alternative, please...

    June 30, 2010 02:23 pm at 2:23 pm |
  12. Marcus

    Just to make it clear;
    I don't believe that is the government's business to dictate what the economy will do and behave for the next years, that's communism and that does NOT works.
    But I do believe that is the government's business to set the boundaries of what is possible to do and what is not and people have to do and not while playing in the economy game. This boundaries MUST exist for public health/safety/protection/finances matters, not to mention to set what is a crime and what is not in the economy field (again, the accountability issue).
    A FREE market is not a 'FREE FOR ALL' market.

    June 30, 2010 02:29 pm at 2:29 pm |
  13. Dominican mama 4 Obama

    I don't care about 'self-imposed' deadlines NOT being met. I DO CARE about finally having this much needed type of reform with some BITE and TEEth to it.

    Let's not do the horizontal mambo with these worthless Senators and compromise the very idea behind the reform which is to effectively REGULATE Wall St. If Brown and Co. want to to start the same song and dance routine move forward without them. And no, I don't care HOW you do it, just get it done and get it done RIGHT and TIGHT this time.

    June 30, 2010 02:40 pm at 2:40 pm |
  14. D. Bunker

    Thanks, CNN, for doing such a lousy job reporting this story. For those who are relying on CNN for their facts, let me add one very important omitted fact: The money is to help wind down failing financial institutions so we aren't stuck with "too big to fail" claims in the future. Now only a few months ago, the GOBP was claiming "too big to fail" was a bad thing, and companies should be allowed to go under. We now know, of course, that the GOBP was lying, and its true colors can be seen now as it opposes making financial institutions pay for winding down their failed brethren. Good job, GOBP, keep groveling on behalf of your corporate masters.

    June 30, 2010 02:47 pm at 2:47 pm |
  15. Media controls ignorant liberals

    More government takeovers as we continue our slide down the chute to a socialist third-world repressive country.

    June 30, 2010 02:48 pm at 2:48 pm |
  16. Hammerer

    More backroom deals to buy votes has once again struck another blow to the citizens of the US. Business as usual. Sell out to the highest bidder.

    June 30, 2010 02:55 pm at 2:55 pm |