Audio clip
Bob Corker
Unable to secure a bipartisan agreement on how to revamp financial regulations, U.S. Senate Banking Committee Chairman Christopher Dodd said Thursday he will offer his own regulatory reform bill on Monday.
Sen. Dodd, D-Conn., pulled the plug on nearly a month of talks with U.S. Sen. Bob Corker, R-Tenn., and other Republicans, insisting "we need to move along" and pass legislation this spring to better regulate banks and other financial institutions.
"As time moves on, you just limit the possibilities of getting something done, particularly a bill of this magnitude and this complexity," Sen. Dodd said.
But Sen. Corker said legislation that regulates everything from banks and credit unions to derivatives, ratings agencies and nonbank lenders would be better shaped if a bipartisan agreement had been hammered out.
"I find that when you are willing to grind out every issue -- and our staff has been working nearly 24-7 for a month to achieve that -- that is when you get a good piece of legislation," he said.
Sen. Corker said Sen. Dodd's new proposal likely will include some Republican features, including consumer regulation through the Federal Reserve Bank. But he said the committee shouldn't rush through approval next week just to stay ahead of the partisan fight coming on health care.
"I cannot imagine a committee member -- Republican or Democrat -- passing a bill with this type of substance in it in a week," Sen. Corker said. "I think that would be a travesty. If senators can pass a bill of this substance in a week -- a 1,200-page bill full of substance that has a real effect on the financial industry -- then the states that elect them might as well send robots."
Sen. Corker blamed the pressure to finish the health care reform bill this month for the breakdown in financial regulation talks and the rush to get a Senate Banking Committee bill.
But Sen. Dodd said Congress needs to improve regulations to avoid a repeat of the financial crisis that erupted more than 18 months ago with the collapse of Lehman Bros. The House passed its version of a bill in December on a party-line vote.
"It will continue to be a challenge to reach a bipartisan deal," said Scott Talbott, the chief lobbyist for the Financial Services Roundtable, an association that represents the banking industry.
What's next?
Senate Banking Committee Chairman Christopher Dodd, R-Conn., will unveil his bill for financial reform on Monday and hopes to get the measure out of committee prior to the spring congressional break in two weeks. The House approved a separate bill in December and a conference committee will have to ultimately work out a plan acceptable to both chambers.
Sen. Dodd proposed a draft bill in November, but with Democrats no longer having a super-majority in the Senate to override a Republican veto, he tried unsuccessfully to negotiate a deal with ranking Republican Richard Shelby of Alabama before turning to Sen. Corker to try to craft a compromise.
Sen. Corker said he was "very disappointed" that Sen. Dodd didn't pursue further talks. But he said he still could be the needed 60th vote for a reform plan if it doesn't tilt too far to the left.
"I just felt we were on the 5-yard line after a grinding drive down the field and then the lights went out," Sen. Corker said.
The Associated Press contributed to this story.
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