Obama, Congress seek bipartisan light to replace political heat

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With healthcare overhaul safely in the rearview mirror – at least legislatively, if not politically – President Obama met with Democratic and Republican congressional leaders on Wednesday to discuss a host of issues, especially Wall Street regulation.

In televised remarks before the meeting, Obama said the proposed legislation would not result in new bailouts for banks, a remark designed to counter GOP arguments. Senate Minority Leader Mitch McConnell of Kentucky, who attended the meeting, has argued the bill would increase taxpayer-funded bailouts.

In addition to McConnell, House Minority Leader John Boehner of Ohio was at the meeting along with key Democrats House Speaker Nancy Pelosi, Senate Majority Leader Harry Reid of Nevada and House Majority Leader Steny H. Hoyer of Maryland. Obama was optimistic, despite the increasingly rancorous legislative atmosphere that he has derided in other forums.

“I am actually confident that we can work out an effective bipartisan package that assures that we never have “too big to fail” again,” he said. The package would also ensure “that consumers are adequately protected when it comes to financial instruments -- whether it’s mortgages or credit cards or debit cards.”

Obama also called for regulation of derivatives, contracts designed to hedge risks but also usable to bet on the future value of assets. Many blame derivatives, particularly those in the mortgage arena, for the near-collapse of the financial system, which required hundreds of billions of dollars in government-backed aid to fix.
Obama also signaled his desire to discuss other issues in a bipartisan setting.

“We’ve got a range of issues -- from a Supreme Court vacancy, a START treaty that I believe needs to be ratified, a host of other issues related to appointments -- that we’re going to talk about, and I’m going to be also obviously listening to congressional leaders about their priorities over the next several months,” Obama said.

The president has called a meeting for next week to specifically address the Supreme Court vacancy and expected summer hearings.

-- Michael Muskal
Twitter.com/LATimesmuskal