Good evening and welcome to the Daily Strike, writing to you tonight from San Francisco. This will be our last entry until Monday, and posts will be spotty next week since I'll be on vacation.
LATE BREAKING UPDATE: It looks like the Brown-Kaufman amendment to break up the banks has failed by a vote of 33-61, a major disappointment. No word on the vote tally yet. I had no idea they would be voting on this tonight when I wrote this entry. Very, very unfortunate.
FINANCIAL REGULATION: Wall Street went into a bit of a tailspin today, at one point the Dow was down nearly 1,000 points, though it later recovered. Some blame this on a computer glitch, while others attribute it to factors in Europe like the debt crisis. No matter what the cause, today's big losses are a reminder that our economy is still extraordinarily fragile, and that we need to keep pushing reforms to protect our financial system.
Luckily, the Senate is making some progress on that front. The Senate took two votes on amendments today. The first, offered by Senator Tester (D-MT), sought to change the definition that corporations use for "assessments." Not really sure what that will do, but it passed by a vote of 98-0.
Next, the Senate rejected the Republican alternative to the Consumer Financial Protection Agency. Offered by Senator Shelby (R-AL), the alternative would limit the power and scope of the agency. The White House and Democratic leaders denounced the plan as being even worse than the status quo. The amendment failed by a vote of 38-61. Every Democrat opposed the alternative, as did Republicans Grassley (IA) and Snowe (ME). I'm pretty surprised that Grassley crossed the aisle, though he did so last month when he supported Senator Lincoln's derivatives measure.
Almost as important as the amendments considered on the floor today were the announcements of amendments to be voted upon early next week. The amendment by Senator Sanders (I-VT) to audit the Federal Reserve got a boost today when Senator Dodd (D-CT) announced his support. Dodd had secured a change to the amendment that he said would protect the independence of the Fed. The other very encouraging news today is that Senator Reid (D-NV) will most likely allow a vote on the Brown-Kaufmann amendment that would cap the size of the big banks. Reid even indicated that he would vote for the amendment himself. Reid's vote probably hinges on how strongly the administration comes out in opposition to the amendment. I'm holding out hope that Obama sees the light some time in the next week, but I'm not holding my breath.
More amendment votes will take place starting Tuesday. Of course the United States Senate can take a 4 day weekend during a long-winded debate on a critical issue. In fact, today Majority Whip Durbin (IL) said that he doesn't think they can finish the bill by next Friday.
THE HOUSE: The House was busy today considering a bill that would provide cash rebates to people who weatherize their homes. This important piece of legislation passed by a vote of 246-161. 7 Democrats voted against the measure (for reasons entirely unclear to me), and 12 brave Republicans voted for it. The bill will surely die on arrival in the United States Senate, but I'm glad the House had a chance to take it up. Perhaps the bill can be included in a broader energy bill later this year.
The House also approved a Republican motion to recommit that seeks to assure that the bill will not add to the federal deficit. The motion passed by a wide margin of 346-68.
And a quick update before we go on the General Election in Great Britain. Exit Polls show that the Conservative Party will win a plurality of seats in the parliament, but probably not enough to ensure a majority. This should create some very interesting negotiations. Stay tuned.
See you next week!
Showing posts with label Cash for Caulkers. Show all posts
Showing posts with label Cash for Caulkers. Show all posts
Thursday, May 6, 2010
Wednesday, May 5, 2010
The Daily Strike-5/5/10-FinReg Amendments Begin
Good evening and welcome to the Daily Strike. I apologize for my negligence yesterday, but unfortunately you will have to get used to it. I'm going on vacation next week!
THE SENATE: The Senate finally began consideration of amendments to the Financial Regulation bill, after a week and a half of stalling and obstruction. Republicans refused to allow votes on amendments, even when offered a chance to subject those votes to a 60 vote threshold. If Democrats wanted to vote on amendments, they'd have to invoke cloture, which would take 60 votes and three days worth of time, per amendment. Republicans finally allowed for the consideration of a few amendments after a deal was struck early in the day between the top Democrat on the Banking Committee, Chris Dodd (CT), and the top Republican Richard Shelby (AL). Dodd agreed to remove the provision that would have set up a liquidation fund, paid for by big financial institutions, that would unwind firms that were "too big to fail." That provision has been taken out, though at this point it is unclear what the replacement provision is.
As part of the agrement, Republicans allowed votes on two Obama administration nominees and two amendments. The two nominees (Gloria Navarro of Nevada, and Nancy Freudenthal to be District Judges in Nevada and Wyoming respectively) each were confirmed overwhelmingly. Navarro's vote was unanimous, while Freudenthal's was opposed only by Senator Coburn (R-OK).
The Senate then voted on the first amendment to the bill, offered by Senator Boxer (CA). The amendment clarifies that the bill does not provide for taxpayer bailouts. The amendment doesn't really have any substantive effect. Rather, it gives Democrats the ability to refute the bogus Republican charge that the bill is one giant "taxpayer bailout." The Boxer amendment passed by a vote of 96-1, with only Senator Kyl (R-AZ) voting no (not sure what that's about). The Shelby-Dodd agreement we alluded to above passed by a margin of 93-5, with Senators Coburn (R-OK), Cornyn (R-TX), DeMint (R-SC), Dorgan (D-ND), and Hatch (R-UT).
There are no further amendment votes scheduled at this point. The two most contentious amendments may not get votes at all. An amendment offered by the odd duo of Senator Sanders (I-VT) and DeMint (R-SC) would call for an audit of the Federal Reserve. I agree generally that we should know how the Fed is pumping money into the economy, but I am afraid that the amendment seeks to undermine the independence of the Federal Reserve, which is crucial to monetary stability. I'm conflicted on this one.
I'm not conflicted on the other contentious amendment. Senators Brown (OH) and Kaufman (DE) still intend to offer the SAFE Banking Act as an amendment, which would limit the size of financial institutions. In what has been a major disappointment, the Obama administration has opposed this amendment behind the scenes. I guess they believe that the size of banks was not the main culprit in the financial crisis. I disagree. This amendment would assure that the fate of the economy would no longer be in the hands of a few firms that make a bunch of risky bets.
Hopefully we'll see votes on these amendments in the next couple of days.
THE HOUSE: The House just dealt with suspension bills today. Tomorrow, they'll consider the "Cash for Caulkers" bill that will authorize reimbursements to families who weatherize their homes.
We did get some sad news out of the House today. Rep. David Obey, a liberal stalwart who has been in the House since 1969, announced his unexpected retirement. Obey is the powerful chairman of the House Appropriations committee. His retirement opens up another potentially competitive seat, especially since the Republicans have already found a viable challenger. Obey was always on the right side of the issues. He was a passionate advocate for shrinking the massive gap between the rich and poor in our society, for campaign finance reform, and for investing money in critical areas underfunded by Republican administrations and Congresses. He will be missed.
That's it for today. See you tomorrow evening!
THE SENATE: The Senate finally began consideration of amendments to the Financial Regulation bill, after a week and a half of stalling and obstruction. Republicans refused to allow votes on amendments, even when offered a chance to subject those votes to a 60 vote threshold. If Democrats wanted to vote on amendments, they'd have to invoke cloture, which would take 60 votes and three days worth of time, per amendment. Republicans finally allowed for the consideration of a few amendments after a deal was struck early in the day between the top Democrat on the Banking Committee, Chris Dodd (CT), and the top Republican Richard Shelby (AL). Dodd agreed to remove the provision that would have set up a liquidation fund, paid for by big financial institutions, that would unwind firms that were "too big to fail." That provision has been taken out, though at this point it is unclear what the replacement provision is.
As part of the agrement, Republicans allowed votes on two Obama administration nominees and two amendments. The two nominees (Gloria Navarro of Nevada, and Nancy Freudenthal to be District Judges in Nevada and Wyoming respectively) each were confirmed overwhelmingly. Navarro's vote was unanimous, while Freudenthal's was opposed only by Senator Coburn (R-OK).
The Senate then voted on the first amendment to the bill, offered by Senator Boxer (CA). The amendment clarifies that the bill does not provide for taxpayer bailouts. The amendment doesn't really have any substantive effect. Rather, it gives Democrats the ability to refute the bogus Republican charge that the bill is one giant "taxpayer bailout." The Boxer amendment passed by a vote of 96-1, with only Senator Kyl (R-AZ) voting no (not sure what that's about). The Shelby-Dodd agreement we alluded to above passed by a margin of 93-5, with Senators Coburn (R-OK), Cornyn (R-TX), DeMint (R-SC), Dorgan (D-ND), and Hatch (R-UT).
There are no further amendment votes scheduled at this point. The two most contentious amendments may not get votes at all. An amendment offered by the odd duo of Senator Sanders (I-VT) and DeMint (R-SC) would call for an audit of the Federal Reserve. I agree generally that we should know how the Fed is pumping money into the economy, but I am afraid that the amendment seeks to undermine the independence of the Federal Reserve, which is crucial to monetary stability. I'm conflicted on this one.
I'm not conflicted on the other contentious amendment. Senators Brown (OH) and Kaufman (DE) still intend to offer the SAFE Banking Act as an amendment, which would limit the size of financial institutions. In what has been a major disappointment, the Obama administration has opposed this amendment behind the scenes. I guess they believe that the size of banks was not the main culprit in the financial crisis. I disagree. This amendment would assure that the fate of the economy would no longer be in the hands of a few firms that make a bunch of risky bets.
Hopefully we'll see votes on these amendments in the next couple of days.
THE HOUSE: The House just dealt with suspension bills today. Tomorrow, they'll consider the "Cash for Caulkers" bill that will authorize reimbursements to families who weatherize their homes.
We did get some sad news out of the House today. Rep. David Obey, a liberal stalwart who has been in the House since 1969, announced his unexpected retirement. Obey is the powerful chairman of the House Appropriations committee. His retirement opens up another potentially competitive seat, especially since the Republicans have already found a viable challenger. Obey was always on the right side of the issues. He was a passionate advocate for shrinking the massive gap between the rich and poor in our society, for campaign finance reform, and for investing money in critical areas underfunded by Republican administrations and Congresses. He will be missed.
That's it for today. See you tomorrow evening!
Monday, May 3, 2010
The Weekly Strike-5/3-5/9
Good morning and welcome to the Weekly Strike. I thought this week would be dominated by the fight over financial reform, but a lot of other stories are dominating the news, most notably the oil spill in the gulf coast. Let's get to the week in politics.
THE WHITE HOUSE: Just when the White House wanted to hone in on Wall Street reform, they have been distracted by events beyond their control. The oil spill in the gulf coast is turning into an unmitigated disaster. By the time all is said and done, this could be a bigger spill than the Exxon-Valdez catastrophe in 1989. Some conservatives have tried to suggest that this is Obama's Katrina, which is patently absurd. For one, the lives of millions of Americans aren't under immediate threat. Two, Obama has done a good job coordinating state and local efforts in the gulf region, including close work with potential adversary Louisiana Governor Bobby Jindal (R).
The White House also had to focus this weekend on the failed terror attempt in Times Square. Explosives found in a car failed to detonate. It doesn't look like this will be a major story, mostly because the suspect appears to be a white guy. The double standards in our society are pretty amazing.
The President's schedule is pretty light to start the week. This morning, he hosts a reception at the Naval Academy for winners of the "Commander in Chief" awards. Later this afternoon, he holds a dinner for the Business Council. The schedule for the remainder of the week is in flux, but I expect him to make one or two appearances on the road.
THE SENATE: Now that Republicans have relented in their obstructionism, the Senate can begin debate on Wall Street reform. Votes on amendments will begin tomorrow. Unlike previous legislation where Democrats wanted to fend off inevitable attempts to make the bill worse, this amendment process may offer progressives some opportunities. Anger at Goldman Sachs after their performance at a Senate hearing last week perhaps has given more momentum to proponents of reform. One particular amendment that might come up, offered by Senators Kaufman (DE) and Brown (OH) would break up the big banks and prevent them from becoming "too big to fail." I'm afraid the Obama administration is opposed to this approach, as is Banking Chairman Dodd (CT). The Big Picture may write more about this amendment, but it would be shameful to see it go down in flames. Not only is it good policy, but it would be very good populist politics.
The other key amendment to look out for is a chance to re-enact the Glass-Stegall Act, which separates banks from other financial institutions. The act was overturned by the Gramm-Leach-Bliley Act in 1999. I'm not too confident on this amendment going though, simply because of the influence of lobbyists, but I'll do my best to keep my hopes up.
THE HOUSE: After taking up suspension bills today and tomorrow, the House will take up the so-called "Cash for Caulkers" bill. The bill will give rebates to individuals and businesses for retrofitting for energy efficiency. The bill has one Republican cosponsor, so I expect it to pass very easily. Perhaps the Senate can include the bill as part of its comprehensive energy package that it will take up...err...at some point.
That's it for now. Leave some comments!
THE WHITE HOUSE: Just when the White House wanted to hone in on Wall Street reform, they have been distracted by events beyond their control. The oil spill in the gulf coast is turning into an unmitigated disaster. By the time all is said and done, this could be a bigger spill than the Exxon-Valdez catastrophe in 1989. Some conservatives have tried to suggest that this is Obama's Katrina, which is patently absurd. For one, the lives of millions of Americans aren't under immediate threat. Two, Obama has done a good job coordinating state and local efforts in the gulf region, including close work with potential adversary Louisiana Governor Bobby Jindal (R).
The White House also had to focus this weekend on the failed terror attempt in Times Square. Explosives found in a car failed to detonate. It doesn't look like this will be a major story, mostly because the suspect appears to be a white guy. The double standards in our society are pretty amazing.
The President's schedule is pretty light to start the week. This morning, he hosts a reception at the Naval Academy for winners of the "Commander in Chief" awards. Later this afternoon, he holds a dinner for the Business Council. The schedule for the remainder of the week is in flux, but I expect him to make one or two appearances on the road.
THE SENATE: Now that Republicans have relented in their obstructionism, the Senate can begin debate on Wall Street reform. Votes on amendments will begin tomorrow. Unlike previous legislation where Democrats wanted to fend off inevitable attempts to make the bill worse, this amendment process may offer progressives some opportunities. Anger at Goldman Sachs after their performance at a Senate hearing last week perhaps has given more momentum to proponents of reform. One particular amendment that might come up, offered by Senators Kaufman (DE) and Brown (OH) would break up the big banks and prevent them from becoming "too big to fail." I'm afraid the Obama administration is opposed to this approach, as is Banking Chairman Dodd (CT). The Big Picture may write more about this amendment, but it would be shameful to see it go down in flames. Not only is it good policy, but it would be very good populist politics.
The other key amendment to look out for is a chance to re-enact the Glass-Stegall Act, which separates banks from other financial institutions. The act was overturned by the Gramm-Leach-Bliley Act in 1999. I'm not too confident on this amendment going though, simply because of the influence of lobbyists, but I'll do my best to keep my hopes up.
THE HOUSE: After taking up suspension bills today and tomorrow, the House will take up the so-called "Cash for Caulkers" bill. The bill will give rebates to individuals and businesses for retrofitting for energy efficiency. The bill has one Republican cosponsor, so I expect it to pass very easily. Perhaps the Senate can include the bill as part of its comprehensive energy package that it will take up...err...at some point.
That's it for now. Leave some comments!
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