The signs are everywhere that the Obama Administration and corporatist Democrats are panicked over the possibility that the Senate financial reform bill might get out of hand and actually, uh, reform the financial industry. So they’ve called out the troops to encourage a cloture vote before there’s any assurance that important amendments to strengthen the bill will be brought to a vote.
We’ve already seen the sorry spectacle of Chris Dodd proposing to kill meaningful derivative reform by requiring that a panel composed of Administration opponents of reform study it before killing it outright. [Update via TPM: Dodd puts it on hold while Lincoln faces a runoff.] As David Dayen summarizes here (a must read), other amendments are also being frustrated by Republicans, corporatist Dems and Senate rules.
More from Roll Call:
Several Democratic sources said getting the 60 votes needed to beat back an attempted filibuster, or invoke cloture, could fall short at the 2 p.m. vote because several Democrats are angry that they have not been able to get votes on their amendments.
. . .
Sen. Sheldon Whitehouse (D-R.I.) vowed on the floor to press his amendment and was seen huddling with the parliamentarian in an attempt to prevent his proposal to allow states to regulate credit card rates marketed in their jurisdiction from being declared nongermane after cloture has been invoked.
Asked whether he would support ending debate Wednesday, Sen. Tom Harkin (D-Iowa) — who wants a vote on his ATM fee amendment — said, “Well, we’ll see,” as he headed to the floor Wednesday morning.
Similarly, Sen. Byron Dorgan (D-N.D.) waited on the floor and strategized with other Democrats on how to get a vote on his amendment to ban “naked swaps.” Senate Banking Chairman Chris Dodd (D-Conn.) huddled with Sen. Maria Cantwell (D-Wash.), who was hoping to get a vote on her amendment with Sen. John McCain (R-Ariz.) to reimpose Depression-era restrictions on banks, insurance companies and securities firms. However, McCain said he doubted the proposal would come up for a vote.
Sens. Carl Levin (D-Mich.) and Jeff Merkley (D-Ore.) also were seen on the floor talking as they waited to see whether their plan to ban banks from proprietary derivatives trading would come up.
It now appears the Levin-Merkley amendment can only pass if it’s attached to a bad amendment by Sam Brownback that seeks to exempt auto dealers from regulation to prevent lending scams.
From Simon Johnson, discussing the importance of the Levin-Merkley amendment to include the "Volker Rule" to restrict proprietary trading by commercial banks that have the benefit of federal deposit guarantees:
This is a defining issue for the president. Either he takes up the Volcker Rule – proposed by his administration, to great fanfare (and some skepticism) in January. Or he rolls over – admitting that Wall Street has won.
We know where Goldman Sachs and its fellow travellers stand on this issue – adamantly and publicly opposed. And we pointed out here in February which way the Republicans were likely to go. . . .
Don’t move on. Pick up the baseball bat that Paul Volcker has given you. Either that or go down to the most embarrassing, humiliating, and memorable defeat in the history of Wall Street-Washington confrontations. It’s the president’s call.
But we’re getting this from the President’s field commanders at Organizing for America:
The House has already passed reform. And today’s Senate vote is one of the last hurdles to landing a bill on President Obama’s desk.
But over the last two weeks we’ve seen the big banks’ lobbyists aren’t ready to give in yet. They’ve been working hard to slip loopholes and exemptions into the final bill.
So far, with your help, we’ve been able to keep Wall Street reform strong — with powerful protections for consumers and tough provisions that would rein in the big banks.
But, with the vote today, the lobbyists are going into overdrive. They know if we can get senators like Scott Brown to vote for strong reform, they have no chance of stopping this legislation from becoming law.
Help us put the pressure on Sen. Brown today by calling in your support for the bill at at (202) 224-4543.
Yep. That’s it. Close off the amendments and let’s get this baby safely over, because it would be terrible if Glass-Steagall that gave us 50 years of stability were brought back. And it would be awful if credit card rates and ATM fees were regulated, banks couldn’t bet with your money, and the banksters didn’t have the freedom to use derivatives trading to screw their customers and tank the economy again.
Update: Cloture vote fails in Senate, 57-42. Feingold and Cantwell among the holdouts. David Dayen has been closely tracking the bill, so be sure to check for more updates at FDL’s News Desk.
More:
Rortybomb/Mike Konczal: Levin-Merkely can’t get a vote
Between the last minute changes, the way the bill has morphed into an endless stream of studies to be ignored at a later date, the dropping of any of the strong progressive resolution mechanisms in the House and the blocking of votes and discussion on Dorgan, Merkley-Levin and Cantwell’s amendments, this has really been a massacre of what was originally a fairly decent bill. Both Reid and the President need to step in before this situation becomes even worse.
WashPost: Financial bill gets last minute amendment from Dodd
Baseline Scenario/Simon Johnson: Finally, the Republicans come out to fight; where is the President?; also, James Kwak, Sam Brownback’s Staff are amateurs
RollCall: Intraparty battle threatens vote on financial reform



60 Comments







Is this a trick question?
Think of it as a litmus test.
Only people with Obama Derangement Syndrome want to humiliate Wall St with unnecessary regulations against fraud.
Of course; when has he done anything different?
If Senator’s refuse to water down reforms, Obama can withhold his endorsement of thier reelection campaigns come this fall! Oh wait… I see a problem with that plan.
I just wonder if Obama, in his limitless arrogance, recognizes that there is a problem.
And SWilliams: Yeah, you got that right.
LOL.
Beat me to it.
Does Howdy Doody have a wooden ass?
Generalized answer: Yes, Empire. No, regulation!
There will be no regulation of the Global Empire — financial, ecological, social, military, legal or otherwise.
The Global corporate/financial/militarist Empire that controls ‘our’ country does not want, and will not suffer, regulation of any kind to get in its way!
Best luck against this Empire,
Alan MacDonald
Sanford, Maine
Well, let’s see Obama has opposed the Lincoln measure on derivatives, the strong audit-the-fed bill, the Brown-Kaufman bill to break up the banks. And on one of the good things he claims to support, the Volker rule, he’s silent. Yeah, I’d say he doesn’t want real reform.
But I have to hand it to him, aside from his opposition to the audit-the-fed bill, he kept his abhorrent positions pretty well concealed.
I’ve added a video from last night’s debate. Senator Merkley is lamenting the fact his Levin-Merkley amendment is being blocked by Republicans and some Dems, despite probably having majority support.
RE: Your questions:
When will we ever expect something different? I’m past that and I am really sad and mad about that.
Blessings,
On the other hand, he could just threaten to publicly endorse Senators that try to push for reforms. Sorta like the Bush endorsement of McCain in 2008…. talk about putting a noose around a mans neck.
Tonight Dylan Ratigan really beat up on Senator Dodd’s successful efforts to undermine this legislation
I don’t expect anything different from this long ago bought off corporate shill of a hollow man. But it’s good to keep the information out there for as many people to see as possible.
Good post insofar as it highlights how Barack Obama exists solely and only to serve the insatiable greed of Wall Street and the Military Industrial complex. BHO has never, ever once in his term in office thought about or served the needs of the citizens who voted him into office.
Caveat emptor and don’t get fooled again.
Via HuffPo:
I’m missing how the nays got to 42 with ‘all but 2 Reps’. Does this mean Bernie and JoeLie joined the no side? Arlen ‘working hard for Pennsylvania until I leave office’ Specter was the no-show.
He’s getting ever closer to
Worst. President. Ever.
Yea, I know Bush was horrible, but Obama’s getting closer by the day
Yet another wonderful rhetorical Q for a FDL post title to add to the collection.
Yes, sadly, I agree, or I might disagree and say: he’s already surpassed Bush (bc, after all, BHO IS smarter than W, so he has less “excuse” for his horrible actions). What with the oil volcano continuing to gush away… hmmm, it’s really getting to be a toss-up, imo.
For a wake up call visit HP to see all the Obama love. The national “scold” is what the U.S. electorate is willing to settle for.
Aren’t you being a tad harsh on the first black Republican president?
I’m trying to track that down. According to HuffPo, Harry Reid is one of the “no” votes; he would have voted yes, but needed to switch votes to retain the procedural ability to bring the measure back.
So, 39 Republicans (without Snowe/Collins) plus Feingold and Cantwell, plus Reid = 42
It doesn’t seem to me that the post offers much in terms of answering the question posed in the title.
whadda we gotta do to make Obama realize that there is a majority of people who bought into his “Change” campaign rhetoric?
We were serious – the fact that Axelrod and Rahm weren’t should, by this point, be superfluous.
take this motherfucker by the horns dude.
OFA whipping the base for cloture RIGHT NOW, without the strong amendments in the bill must have escaped you.
If the health care corporate giveaway has a loophole that will authorize a prescription for a shit-load of valium, everything should be fine.
All I know is I’m getting VERY cautious of what petitions I sign…..
It won’t be imported so you’ll be paying top dollar.
I’m afraid it’s a lost cause. Kagan, BP, etc., all conservative all the time.
Yeah like McCain would have been better. I for one will stand up for Obama since no one else here seems so inclined. He’s done a lot of good in 18 months, and I see a lot more coming. Not as much as I would like but way more than the alternative.
Wikipedia: A rhetorical question is a figure of speech in the form of a question posed for its persuasive effect without the expectation of a reply.
There’s a lotta picatta, milanese, saltimboca, dore and marsala being made ain’t there.
OFA, where white, milk-fed ideas are raised in the pens, slaughtered, pounded, and served.
Emptywheel is upstairs!
Sheldon Whitehouse Lists the NEPA Exclusions
I’m sorry, you must be lost.
This blog is frequented by mostly progressives.
It didn’t escape me.
Not arguing. Just asking.
What has he really accomplished for those who voted for him, since signing the Ledbetter Fair Pay Act?
I assume it’s a rhetorical question.
Rahm, is that you?
Yeah well there’s “better” and there’s “good enough”, which ain’t necessarily the same thing – as in this case. Besides, I can’t really say Obama has been “better” than McCain would have been. He’s escalated Afghanistan and essentially given us a continuation of the Bush agenda on civil liberties, torture, Iraq and the Wall St bailout. The “good” you assert (without providing evidence) he has done in the past 18 months seems to me to be nothing more than an agenda designed to co-opt liberals into supporting the right wing, corporatist, militarist agenda. And now he has his very own Gulf of Mexico disaster that he’s mishandling. Heckuva job Barry!
Your expectations are so low you’re willing to settle for crumbs. If it weren’t for people one can find on this blog Obama would be providing even less hopey changey. If power isn’t challenged it will run right over you.
This really reveals what an abject coward he really is.
State Cutbacks Imperil “the Obama Generation”
By Randy Shaw
http://www.californiaprogressreport.com/site/?q=node/7766
Howdy Doody does indeed have a wooden ass.
David Dayen is upstairs!
Feingold, Cantwell Explain Their Votes Against Cloture
Suggestion: New screen name: Runslowandlose.
I’m with John in Sacramento @ 16 (only we don’t need any more evidence):
Worst.
President.
Ever.
And one of them is that slimeball, Ezra Klein.
Just saw him on KO. He says “time is the issue.”
I’m through with KO.
Yeah, I’ve got to agree with you that Obama has done a lot of good for big corporations. With the Democrats in charge of Congress there’s no way McCain could have passed the corporate welfare HIR bill with the added bonus of serfdom, so yeah, Obama has really done a lot and will continue to do a lot more corporatist work that McCain never could have gotten through Congress. Obama has been great for 1% of the population, while getting the Constitution being shredded for free.
No, he hasn’t done anything good. McCain couldn’t have done any worse and probably would have done better.
Barry is indeed a socialist…for Corporations, not middle or lower class.
At least McCain wouldn’t have destroyed the progressive movement. Barry running on our issues, and then completely ditching them, has created a huge credibility gap that will be difficult to overcome with independent and non-retarded Republican voters.
Kudos to Cantwell and Feingold. Must of found the balls Harry lost a few years ago.
You called it. The guy makes me sick.
LOL!
I am so sick of Democrats sucking up to big corporations for campaign contributions!
I don’t sign any. I’ve come to the conclusion I could wear out all the pens in the world and it would do no good. obama and congress don’t give a damn what I think or what I want.
And how do you know mccain would have worse (I’m guessing that’s who you are referring to since everyone pretends there are only 2 parties)? At least he wouldn’t have had a congress of the same party to kowtow to him.
I’ve had it up to the ears with “fancy pantsy shmansy” Barack! While our society teeters on the edge of oblivion, he postulates, pontificates and masturbates out in the weeds with those slimy enemies of the people: Summers and Geithner!
From here on, I’m supporting:
DEMOCRATS AGAINST OBAMA
“One term was a mistake;
Two would be TREASON!”
OK, people, I think most of us get your point(s). But think, really, about probable alternatives. By this time in either a McCain first term or King Bush 3rd term (remember in 2002 people were talking about repealing the XX amendment): There’s 0 financial stimulus, 0 healthcare reform, 1 attempt at financial reform that leaves G-Sachs fatter than ever, 0 planning for troop reductions in Iraq & Afghanistan, and nukes on planes ready to strike Iran. (Also BB Netanyahu had a fun state dinner at the white house.)
Go ahead, flame me if you want, but you’re starting to sound like progressive tea-baggers.
Unfortunately, it may have to get worse before it gets better (IF EVER).
Until the American people get off their overly fat posteriors, it WON’T get better. They have to get mad a la 1932 and elect a REAL leader who actually BELIEVES in “the American dream”. This guy is obviously not IT!
I agree 100%. We need a real leader. One who believes in the American Dream (for everyone). And 1932 is a grand starting point, altho clearly FDR was one of a kind (patrician Keynesian semi-socialist guy with polio and mistresses, with the last two qualities overlooked by the MSM).
That said, I think that junking on Barry because he’s pretty much as-advertised (moderate, over-valuer of bi-partisanship) and politically naive (negotiates with self before negotiating with others) is a waste of time. Gotta pull the man left if possible, gotta replace trust with advocacy, if possible, gotta elect someone better in the next round (or two), if possible.
But electing someone worse, which IS possible, needs to be avoided at all costs.
Unfortunately, Barack is also an unrepentant LIAR! Before he was even nominated, he PROMISED to not only oppose the Retroactive Telecom Immunity Bill, but actually to FILIBUSTER it.
He then proceeded to vote FOR it!!!!! I should have “bailed” then, but unwisely chose to give him “one more chance”; BAD MISTAKE!!!