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Government
& Public Affairs Update
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Government &
Public Affairs Team
Reginald M. Turner
John
Van Fossen, Practice Group Leader
Lucius A. Vassar
Chris Wagner
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Republicans Block Bill to Get
Concessions
Yesterday, Senate Republicans voted against ending debate on S. 3217, the Restoring
American Financial Stability Act of 2010.
Senate
Majority Leader Harry Reid (D-NV) decided to bring the measure to the
floor after months of negotiations between retiring Banking Committee
Chairman Chris Dodd (D-CT) and Ranking Member Richard Shelby (R-AL)
stalled earlier this month.
The
issue also appeared to be a slam dunk for Democrats in the wake of
mixed public reaction to passage of the health care reform bill last
month. Recent polling indicates that two-thirds of Americans
favor stricter financial regulations.
Nevertheless,
Republicans were unified in delaying consideration of the bill in
order to extract concessions from Democrats. Two key issues
include a $50 billion bank liquidation fund, which the White House
has already targeted for elimination, and the exclusion of federal
mortgage giants Fannie Mae and Freddie Mac from the bill's more
stringent regulations.
And
while Senate Republicans were unified yesterday, Democrats are hoping
that public support for reform and recent revelations about the
Securities and Exchange Commission's (SEC) civil suit against Goldman
Sachs for misleading investors about securities tied to home loans
will put significant pressure on moderate Republicans to switch their
no votes.
Negotiations
are ongoing between Dodd and Shelby, but aides say that those
conversations are being held by telephone and that no staff level
meetings have been scheduled where the deals are hammered out.
A final compromise may be weeks away they say. Meanwhile,
Democrats will keep the heat on Republicans by forcing them to
continue to block the legislation.
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If you have any questions concerning these issues,
please contact Chris Wagner at 202.772.0924 or cwagner@clarkhill.com.
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To find out
more about Clark Hill and our Government & Public Affairs
Practice Group, visit clarkhill.com
or call 800.949.3124
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