Democrats warn GOP on Monday’s financial reform vote
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As the Senate prepared for its first key vote on financial regulation, Democrats on Monday warned Republicans they had better get on board or face the political consequences of being branded pro-Wall Street.
Majority Leader Harry Reid of Nevada has scheduled a cloture vote on a Democratic bill for Monday, the first step in bringing the measure to the floor, where it can be debated, amended and face a final vote. The House has already passed a different bill.
In the opening salvo of Monday’s action, Reid’s office issued a statement goading Republicans to back moving the bill to the floor.
“We remain eager to work with Republicans who are sincere about reforming Wall Street, and we are hopeful for bipartisan agreement on this important effort. But there are no two ways about it: A vote against even opening debate on holding Wall Street accountable is a vote to protect Wall Street,” said Jim Manley, a spokesman for Reid.
Polls indicate that American voters in this midterm election year overwhelmingly mistrust Wall Street and blame bankers and traders for causing the economic collapse that has sent unemployment soaring to just under 10%.
But Monday’s battle is also a classic political fork.
In chess, a fork is when one piece attacks two enemy pieces creating a problem on how to defend both at the same time. The same is true in this political situation, as Democrats hope to seduce at least one Republican to back the bill, earning a victory that could be popular with voters in November. Or, if the 41 GOP senators stand together, Democrats can claim a political victory, portraying the GOP again as the obstructionist party aligned with the despised Wall Street fat cats.
Republicans have problems with some of the bill’s provisions, including plans for a $50-billion industry-financed fund that the GOP calls an invitation to future taxpayer bailouts. Democrats insist the fund would be designed to pick up the pieces of a failed financial institution and would not be a bailout.
Of course, both Democrats and Republicans can decide to put off a confrontation. Talks to hammer out a compromise have been ongoing.
-- Michael Muskal
