–Senate Democrats Hope To Pass Final Health Bill This Week
–Senate Republicans Ponder Barrage of Amendments, Procedural Fights
–Senate Banking Chief Dodd To Begin Monday Mark-Up at 5 P.M.
–House Ways & Means Committee To Hold Wed Hearing On China Forex
–House Financial Services Panel To Hear From Geithner on Housing Tues

By John Shaw

WASHINGTON, March 22 (MNI) – In another critical week on Capitol
Hill, Senate Democratic leaders will try to secure passage of the
reconciliation bill that makes adjustments to the sweeping health care
reform bill that was approved Sunday in the House.

And Senate Banking Committee Chairman Chris Dodd will formally
present his new financial regulatory reform plan to his panel Monday at
5 pm ET.

Dodd is hoping to pass his regulatory reform bill through his
committee by the end of the week, but before then the Banking panel will
wade through dozens–and possibly hundreds–of amendments.

Meanwhile, Treasury Secretary Tim Geithner is set to testify
Tuesday at 10 a.m. before the House Financial Services Committee on the
future of housing finance.

The House Ways and Means Committee will hold a hearing Wednesday at
10 am ET on China’s exchange rate policy. The witness list includes no
government officials. The hearing features a group of think tank
analysts who have been speaking on the issue for years.

On the health care front, the Senate is expected to take up the
reconciliation bill Tuesday. The bill makes a number of fixes to the
comprehensive health care bill Obama is expected to sign Tuesday.

If the Senate passes the reconciliation bill without changes it
goes to Obama for his signature. But Senate Democrats first must defeat
dozens of Republican amendments and a raft of parliamentary attempts to
remove provisions from the bill. If the legislation is altered at all,
it must be sent back to the House for its consideration.

Senate Majority Leader Harry Reid told House Democrats Saturday
that the Senate will approve the reconciliation bill.

“The most sweeping changes to Americans’ health care will be law in
a matter of days. We need a simple majority to make the good law even
better,” he said.

Under Senate rules, reconciliation bills are limited to 20 hours of
debate and any amendments must be germane to the bill.

Senate Minority Leader Mitch McConnell said in a Sunday TV
interview that Republican amendments will “highlight the massive
Medicare cuts, the massive tax increases, and other deficiencies that we
think are the reason the American people are against this bill.”

The health care bills — the underlying bill and the reconciliation
bill — extend health insurance to about 32 million people who now don’t
have it, about 95% of the population. It would create state-based
exchanges where individuals without employer-provided health care could
buy insurance. Federal subsidies would be available to help cover the
cost for low income people.

The bill would cost about $940 billion over a decade. According to
a preliminary assessment by the Congressional Budget Office it would cut
the deficit by $138 billion over a decade and $1.2 trillion over the
second ten years.

The package is largely paid for by savings from Medicare and a host
of taxes and fees, including an excise tax on high cost health insurance
programs and an increase in the Medicare payroll tax for individuals
making more than $200,000 and couples making more than $250,000.

The other key event in the Senate this week is Dodd’s push to win
Banking Committee approval of his financial regulatory overhaul bill.

Dodd will convene the Banking Committee for a Monday evening
mark-up. A spokeswoman for the Banking Committee told Market News
International that Dodd expects the Monday session to include opening
statements from him and Sen. Richard Shelby, the ranking Republican on
the panel, and then the panel will begin considering amendments.

She added that while Dodd still wants the panel to vote on the plan
this week, he will not insist on this if members of the committee still
have additional amendments to be considered.

Several Republican senators have said that given the scope and
complexity of Dodd’s bill it will require more than a week-long mark up.

Dodd’s legislation establishes a new independent Consumer
Protection Agency at the Federal Reserve Board, creates a “safe way to
liquidate failed financial firms,” sets up a council of regulators to
oversee systemic risk in the economy, establishes a regulatory structure
for over-the-counter derivatives, requires hedge funds that manage over
$100 million to register with the Securities and Exchange Commission and
creates a new office within Treasury to monitor the insurance industry.

Under Dodd’s bill, the Federal Reserve would oversee bank holding
companies with assets over $50 billion.

Dodd’s bill also would require the president of the New York
Federal Reserve Board to be appointed by the President of the United
States and confirmed by the Senate.

Members of the Banking Committee have said they expect a number of
amendments regarding the consumer protection agency, with some pressing
for it to be completely independent while others may seek to place it in
Treasury.

It seems likely that there will be amendments challenging Dodd’s
proposal to require the president of the New York Fed to be appointed by
the President of the U.S. and confirmed by the Senate.

Senate Democratic leaders have said that financial regulatory
reform will be a key item on the Senate agenda this spring. Senate
Majority Leader Harry Reid has said he is putting financial regulatory
reform legislation on the front-burner after health care, adding he
wants the Senate to pass a regulatory reform bill by the end of May.

** Market News International Washington Bureau: (202) 371-2121 **

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