Tag Archives: fiscial regulatory legislation

Senator Cantwell Agrees to Support Financial Regulatory Bill

It seems Democrats in Congress are on the verge of passing another major bill. As reported in the New York Times today, its “a question of when – not if – according to Senate  Democrats.” With most Republicans still plugging their ears and covering their eyes and ignoring the pressing problems facing this country, every Democratic vote is critical as 60 votes are necessary to prevent a filibuster in the Senate.

Senator Maria Cantwell had previously voiced her opposition to the bill because she was concerned that not enough was being done to address the financial risk of loosely or unregulated financial instruments like derivatives which had helped to contribute to the recent financial crisis.

Now the New York Times reports that:

Senator Maria Cantwell, Democrat of Washington, who originally opposed the regulatory overhaul, announced that she would support the final version. The move came after she received a letter from the Commodity Futures Trading Commission about provisions relating to new regulation of derivatives, the complex financial instruments that were at the heart of the 2008 crisis. Ms. Cantwell had been concerned about potential loopholes but said she was reassured that the bill would impose a tight regulatory framework

Final passage will still depend on several Republican votes appearing and probably a temporary replacement Senator being appointed to fill West Virginia’s Senate seat held by Senator Robert Byrd who recently died.
The seat will be filled with a temporary appointment until a special election is held in November to fill the remaining two years of Byrd’s term.

One glaring omission from the bill is the lack of oversight for car dealers by the proposed Consumer Protection Agency in the bill. It is unfortunate because after buying a house, cars are one of the major expenses of US households. This would have been a popular item with consumers. .