Moments ago, the Senate agreed to proceed to debate, by unanimous consent, on the Wall Street reform bill. The big question now is what the debate and amendment process will look like; in particular, will the amendments be allowed to pass with a majority vote?
There are a host of good ideas out there to improve the bill, and in addition Republicans want to introduce amendments. Mitch McConnell said that his caucus intends to offer many amendments, with reasonable and short time agreements, and Harry Reid agreed to this in his statement:
“Nothing has changed from our end since Monday. We’ve always wanted to start the debate on Wall Street reform with an open, bipartisan amendment process. I will offer the first amendment, combining the best parts of the Banking Committee’s and the Agriculture Committee’s bills. Obstruction has wasted enough of the American people’s time and now it’s time to get to work.”
This alludes to the derivatives piece, and there’s no telling what it means. In particular, the measure to force banks to spin off their lucrative swaps trading desks may not survive such a combining; the Federal Reserve spoke out against that particular issue, and even offered a reinstatement of Glass-Steagall as a preferable alternative. The big banks make a mint off these trading desks, and really want to keep them.
But more than that, the real question is about the majority vote for amendments. Sen. Richard Burr (R-NC) told blogger Mike Stark today that every amendment would need 60 votes. That would be a subversion of democracy; it’s exactly what was determined for health care, to protect the bill. There is no deal, bipartisan or otherwise, to protect on Wall Street reform, and the majority should be allowed to decide the components of the bill. That’s what Jeff Merkley told me yesterday, that a process without open, majority-vote amendments would be a “travesty for democracy.”
A Senate leadership aide didn’t know what would be available on the Senate floor, but said that a 60-vote threshold “sounds plausible.”
If progressives and those in conference who want to legitimately do something with this bill don’t speak up now, and condition their ultimate votes on a truly open amendment process, they cannot say a word when the finished product fails to live up to their expectations.
As a side note, Annie Lowrey has a very good guide to some of the better amendments in the bill. They include:
1) The Safe Banking Act (Brown-Kaufman) to restrict the size and leverage of financial firms
2) The Sanders amendment to audit the Federal Reserve.
3) Cantwell-McCain, which would reinstate Glass-Steagall provisions.
4) The Volcker rule amendment (Levin-Merkley) which is somewhat similar to both the Safe Banking Act and Cantwell-McCain.
5) Something to reform the credit rating agencies.
6) The Reed amendment to make the Consumer Financial Protection Agency independent of the Federal Reserve.




10 Comments

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Oh yes there is: The deal is between the WH and the banksters.
Helpful summary, David. thanks.
I can’t believe that Republicans will make it easy or that Democrats would want them to.
There will be no open amendment process.
So we’re back to the 60 vote threshold again, but the count is 59 to 41. Tyranny of the well-focused minority. In the long gone days we’d refer to this as a broken record and hit the eject button.
Once again around the park, James.
“Nothin’ from nothin’ leaves nothin’
You gotta have somethin’ if you wanna be with me”
We need to keep the debate going night and day until enough Americans get really pissed at the GOP for blocking these needed safe-guards. Around the clock and around the week, keep their feet to the fire and America’s attention on their foot dragging until they cave.
So long as we keep thinking that this is our team versus theirs, the guys that want to game the system for personal gain will be the big winners. This is about the Ds once again saying that they need 60 when nothing could be further from the truth. Majority rules was sufficient until about a year and a half ago.
Countdown to Leiberman.
This country is a fiasco.
Except for Mr Dayen, who rocks.
Tis a puzzle.
Sixty-vote rule means 41 Rs plus 19 Ds or 59 Ds plus 2 Rs.
Majority rule means 41 Rs plus 10 Ds or 51 Ds.
It’s hard to say which McConnell might prefer. And it’s harder when you consider he might open things up or keep his party together on each amendment.
Can Repubs get 19 Dems for anything? I doubt it.
Can Dems get 2 Repubs for anything? Probably several things.
Can Repubs get 10 Dems for anything? Some I would guess.
Can Repubs avoid puking if 51 Dems pass things with no Repub votes? YES
Yep, hard to say what they’ll do.