Fielding questions with progressive bloggers, House Speaker Nancy Pelosi told FDL News that she personally supports two key measures of the Wall Street reform package that reformers will fight for in conference, and that the House conferees on the bill will have a goal of seeing the most progressive legislation possible come forward, even if that contrasts with the bill their own chamber passed last December.
Pelosi said that she supports a strong iteration of the Volcker rule, which would ban proprietary trading by deposit-taking banks. The House bill allows for such a rule to potentially be considered, while the Senate bill requires some sort of Volcker rule be put into action, but leaves the details to the discretion of regulators. Senate Democrats like Jeff Merkley and Carl Levin have pushed for an even more concrete Volcker rule than what currently exists in either version to be included in the bill, and the White House has nominally supported a strong Volcker rule as well. Speaker Pelosi actually seemed surprised by that last fact, telling FDL News “I didn’t know the White House is pushing the Volcker rule, are they… I’m glad to hear it?”
The Speaker also expressed support for another major provision, the derivatives title of the Senate bill authored by Sen. Blanche Lincoln, including the measure to spin-off the big banks’ lucrative swaps trading desks. She said that, while she “didn’t know” where the White House is on derivatives (they’re against the trading desks provision), she sees “a lot of enthusiasm for Sen. Lincoln’s proposal among some in the House.” She even said that some members of the House Agriculture Committee, which created a fairly poor derivatives title for the House bill, support the Lincoln bill, including the spin-off proposal. Pelosi said that ultimately, Collin Peterson, the Blue Dog chair of the Ag Committee, will have a lot of responsibility over that area of the bill, but that Barney Frank, who has been outspoken on the need to strengthen the derivatives title beyond what was in the House bill, would act as chair as the controlling authority. “I have great confidence in Barney,” Speaker Pelosi said.
The goal, Speaker Pelosi said, was to “see the most progressive legislation to protect the American people from the recklessness and the exposure” given by Wall Street. “Some on Wall Street believe that you privatize the gain and nationalize the risk. This is a terrible price for the taxpayer to pay, in terms of jobs, savings, homeownership, pensions. So the conference will be open and we will have an interesting debate on these issues.”
Speaker Pelosi fielded questions on the recent jobs legislation that passed the House late last week, saying that there was no appetite in Congress for a bill in that size, and that necessitated the scale-back, cutting away FMAP assistance for the states and the COBRA subsidy for the jobless. She promised to take up the Medicaid portion, which wouldn’t kick in until next January, in a future bill, as well as trying to take up COBRA again (that subsidy expires this week). “We have a changed climate in terms of the size of spending,” she said, reflecting the fiscal conservatism that appears to be driving debates in Washington in a time of mass joblessness. Even though Pelosi strongly defended the need for job creation measures and soundly criticized cutbacks in areas like education, she added that the deficit should be an issue for progressives because funding debt service means that “money goes down the rathole.” She said that the Senate would take up the job legislation as soon as they came back into session.
Pelosi acknowledged and even praised the role of progressives in impatiently arguing for further structural changes to policy, saying that before she came to Congress, “I was relentless, persistent, dissatisfied,” and that such a posture is a good role for people to play.




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It seems like the purpose of these conference calls (I’m assuming it’s a conference call) is to persuade progressive bloggers that it’s not Pelosi’s fault when progressives don’t get what they want. Should be called the hot potato meetings.
Nonetheless I’m glad FDL participates.
More Bullshit to make the masses think they are actually working for us as they did with HCR.
In the end it will be like a guard dog with no teeth.
Remember the Public Option?
Maybe I am plugging this too much but if you haven’t read Matt Taibi’s article you should He nails it as usual with info the MSM won’t report.
http://www.rollingstone.com/politics/news/;kw=36899,157778
“Even though Pelosi strongly defended the need for job creation measures and soundly criticized cutbacks in areas like education, she added that the deficit should be an issue for progressives because funding debt service means that “money goes down the rathole.”; truly depressing that she has bought into the deficit mania that will only lead to more pain for the average U.S. citizen.
O Yeah! she supported a strong public option too.
So then what happened ?
Talk is cheap.
This wasn’t cheap:
“money goes down the rathole.”
Yes, especially $1 Trillion + interest on two stupid wars.
Bien sur. But of course she does.
Yadda,Yadda,Yadda… Along with retroactive immunity for illegal spying and mandates to buy for profit insurance. Fuck her and her investment banker husband.
Ding.
Why should anyone believe anything any D, or any pol sez. Screw ‘em all.
Somewhat O/T,but interesting and financially germane:
Source: Raw Story
Goldman Sachs sold $250 million of BP stock before spill
By John Byrne
Wednesday, June 2nd, 2010 — 10:12 am
Firm’s stock sale nearly twice as large as any other institution, but represented just 44 percent of total BP investment
The brokerage firm that’s faced the most scrutiny from regulators in the past year over the shorting of mortgage related securities seems to have had good timing when it came to something else: the stock of British oil giant BP.
According to regulatory filings, RawStory.com has found that Goldman Sachs sold 4,680,822 shares of BP in the first quarter of 2010. Goldman’s sales were the largest of any firm during that time. Goldman would have pocketed slightly more than $266 million if their holdings were sold at the average price of BP’s stock during the quarter.
If Goldman had sold these shares today, their investment would have lost 36 percent its value, or $96 million. The share sales represented 44 percent of Goldman’s holdings — meaning that Goldman’s remaining holdings have still lost tens of millions in value.
Read more: http://rawstory.com/rs/2010/0602/month-oil-spill-goldma… /
Does anyone believe anything that comes from the senate or the house anymore?
Does anyone still believe we can reform the democratic party from within?
Don’t get me wrong, I think it’s great “progressive bloggers” get to have some Q&A with Madam speaker but to think ANYTHING good is going to come from this congress or the next (or the next) is deluding themselves for whatever reason…
I don’t think we can take a fruitful next step until that’s understood by more progressives…
It would be nice if that Pelosi currently says she supports were a starting point for solving the problems with the financial market that is now well protected from loss by the taxpayer. Instead, with history as a guide, this is the best that can be hoped for and woefully inadequate. The policies of the Fed and Treasury that have kept the TBTB on life support are not addressed. Even the “Strong Volcker” rule probably, since like the Public Option is not clearly defined, has holes that the creative financial types can drive a truck through. Pelosi says that taxpayers should not be on the hook for private losses but these proposals do nothing to prohibit that from continuing.
If she really thought that borrowing mattered and was a form of throwing money down a rathole she would focus her eagle eyes at military spending and the ongoing bailouts of the financials because neither form of spending promotes job growth related to production. This just seems like more of the ongoing formula of telling the rubes what they want to hear in order to sell more snake oil. Even if they kept to this there are still larger issues around job creation and misplaced priorities that are no more likely to be addressed than actual health care reform that helps those in need more than those who pay lobbyists.
I agree with you.
My dad who was a lifelong Democrat, would not recognize the party of today.
AND THE KILLIN’ GOEZ ON AND ON AND…
Citizen David Dayen and the Firepup Freedom Fighters:
Another important piece of information, good work again Brother Dayen. And for those who are skeptical about the depth of commitment of Democratic leadership to a strong financial services bill I would like to remind you of where this new turn is comin’ from: the Speaker of the House of Reprsentatives. This is an off year election cycle and the ground has been turnin’ under the corporatists feet as they try and use the phony “Teabagger” cardboard army to drive politics and policy to the right. The members of the House of Representatives and Ms. Pelosi know that the only way they hold serve and keep their majoritiy in the House is to be able to run on strong progressive reform policies AND some kinda legislative accomplishemnet. And the White House is beginnin’ ta find itself irrelevant in thepolitical dialogue on the ground, the White House and ObamaRahma don’t matter and even Senators like One Hung Harry Reid are beginnin’ ta realize that if they don’t move away (left) from the Teabagger corporate stalkin’ horse, they won’t get re-elected.
If these noises for strong reform were jest comin’ from the White House and Senate leadership, I would agree with the skeptics but, like I have been sayin all along: “It’s all about the House,Stupid!” As ObamaRahma stands up to his knees in oil sludge and holds his hands over his eyes as Israel declares war on humnanity and the rest of the “Western World”, we begin to realize just how impotent this Presidency really is and the vacuum politically is not bein’ filled by the “teabaggers” but by politicians in the House of Representatives who wanna be re-elected and a Speaker who wants to keep the gavel.
We’re in a dangerous situation but the last thing we need ta worry about is guttin’ Social Security…look at what happened ta GW Bush and the fascists when they tried that last time…as long as the House of Represntatives is elected every 2 years, is controlled by democrats and controls revenue bills and Social Security legislation, there will be no gutting of Social Security under the cover of deficit reduction. Nancy Pelosi is playin lip service to “deficit reduction” but is serious about stayin Speaker so I’m believin’ that she’s a hell of a lot smarter politically than Rahm Emmanuel and George W. Bush.
KEEP THE FAITH AND PASS THE AMMUNITION, JUST REMEMBER NOT TO SHOOT THE FRIENDLIES!!
Emptywheel has a fresh cross-post already in progress: Holder Emphasizes 11 Dead When Discussing DOJ Investigation of BP Disaster
Well, there’s your problem right there. *g*
I could not agree with you more. On the Volcker rule, traders would just blur the line between customer and proprietary trading. Spinning off derivatives desks has merit but somehow I don’t see it happening.
good post!
Obama, Rahm, Clinton, and the rest of the phony democrats in congress are starting to feel the strong winds coming from left.
Blanche Lincoln is a dinosaur, she can’t win, if she wins the primary, she will get destroyed in the general, the progressive in Arkansas will not vote for Blanche Lincoln.
My confidence in Frank, in the area of financial reform, is pretty much based upon past performance. Perhaps Pelosi is using a different measure or maybe she expects him to do the same things the rest of us do as well. Make sure that his FIRE contributions are larger than the senior Republican on the committee.
Sorry, but just more Bullshit to calm us down….
They are totally captured, corrupt and we are fucked….
It’s like the CEOs telling the board of director to go get fucked, they’re taking their bonuses.
What can we do? primary em’??
The funny thing is the right says the Government owns the corperations, and the left says the corperations own the government. The middle class gets squeezed, and screwed, either way.
Who are the non-phony democrats? Subpoena power Pelosi? Really, we’re going to believe they will actually start to become progressive now (and apparently find the guts to follow through) because they are worried about their seats…Let’s come back to this after we see what comes out of conference. I get the feeling there will be a nice shiny loophole somewhere that deflates anything ‘progressive’. Would you have felt this way 2 months ago? Did BP cause the earth to shift in democratic politics?
I am firmly in the ‘beyond skeptical’ crowd, how many times do we have to delude ourselves that they will do ANYTHING to benefit the American people if their corporate benefactors don’t approve it…it’s 2010 and there hasn’t been even one slight gosh damn win…how in the hell could I have faith in them now just because a few are worried about their seats..Never gonna reform congress regardless of which party has control (both still work for the same bosses).
Who are the non-phony democrats? I don’t have an answer
I stand corrected
Oh wait! war funding vote must be nigh at hand….why else this stunt.
They throw out a few
catch praises….er key words(Volker rule,repeal DADT,renewable energy & strong public option) and the sheeple fall in line.I’m with you, Norske! More power to you, Nancy! and everyone keep yelling!
Wasn’t this the same woman who supported a “robust PO?” I guess these folks haven’t figured out yet that no one believes a fricking word they say, anymore.
Greaat read, thanks!
Matt sums it up!
Bank/fin reform is no better for we the people than HCR was.
As was caught in Lincoln’s amendment, all the good stuff was lined out, and the damned amendment enables trading of derivatives in the dark, rather than making them illegal.
Sigh.
I guess you didn’t read Jack54@3 linky to Matt’s Rolling Stone 6 pager.
Wherein Matt Taibi details how fin reform HAS been effectively scuttled.
Pelosi’s comments are meaningless. The Senate took care of any real reform, and castrated it.
The House controls squat.
But I sure admire your positive energy, hoss.
Finding sunshine in the dark is a task that’s failing me with respect to reform efforts of any kind.
Well illustrated! Nice.
Yeah, if anyone above with a positive take on Pelosi’s comments or a positive take on bank/fin reform had read Matt Taibi’s article in RStone at Jack54@3 linky’s, they might have reshaped their sunshine view of Pelosi or any of the House or Senate . . . .
Blind as sheeple . . . . even progressives.
Sigh.
I just have to thank Jack54 once again for the Matt Taibi link in his #3 comment.
What a great and revealing and detailed read.
Everyone should read that. The bank/fin reform is history, it’s a joke. It’s not pining, it’s nailed to the bloody perch.