–Senate Minority Leader Hammers Dems On Regulatory Reform
–Admin Wants ‘Political Issue’ Not Problem Solving Law
–‘We Can Do Better and We Must’
–Senate Banking Chief Dodd To Respond In Coming Hour

By John Shaw

WASHINGTON (MNI) – Senate Minority Leader Mitch McConnell Wednesday
continued his torrent of criticisms about the financial regulatory
reform bill drafted by Senate Banking Committee Chairman Chris Dodd,
saying it’s a “partisan bill” that will not heal the nation’s financial
system.

For the second consecutive day McConnell used his leadership
speaking time on the Senate floor to assail Dodd’s regulatory reform
bill.

McConnell said Dodd’s bill not only fails to end the possibility of
future government bailouts of financial firms, it makes it “official
government policy to bail out the biggest Wall Street banks.”

“This bill gets it very, very wrong,” McConnell said.

“We can do better and we must,” he added.

McConnell said congressional Democrats and the White House view
regulatory reform as a “political issue” rather than an opportunity to
fix the regulatory system.

He said Senate Democrats have crafted a “partisan bill” that they
intend to “jam” through the Senate.

McConnell and other congressional leaders will meet President Obama
later in the day to discuss regulatory reform.

McConnell’s criticisms of Dodd’s bill have been far harsher than
those offered by Sen. Richard Shelby, the ranking Republican on the
Senate Banking Committee.

Shelby told Market News International Tuesday that he continues to
work with Dodd on a “consensus” regulatory reform bill.

He said that it should be clear “in the next couple of weeks” if a
bipartisan agreement is possible.

“We’re still talking, we’re still consulting. There are a lot of
areas of agreement. But there are also some differences. Some important
differences,” Shelby said.

The key Senate Republican said the paramount issue for him is
finding a workable and effective way to end “Too Big To Fail.” “We’ve
had way too many bailouts. We have to end them. We have to make sure
they don’t happen in the future,” he added.

The full Senate is expected to begin debating financial regulatory
reform the week of April 26.

The Senate Banking Committee approved Dodd’s regulatory reform bill
on March 22 on a party-line 13 to 10 vote. All Democrats supported the
bill and all Republicans opposed it.

Dodd’s legislation establishes a new independent Consumer
Protection Bureau at the Federal Reserve Board, creates a process 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 SEC and creates a new office within
Treasury to monitor the insurance industry.

Senate Majority Leader Harry Reid has said he is putting financial
regulatory reform legislation on a fast track, adding he wants the
Senate to pass a regulatory reform bill by the end of May.

Obama has said that financial regulatory reform is one of his chief
goals for the rest of this legislative session.

Dodd will respond in a few minutes to McConnell’s comments, a Dodd
spokeswoman said.

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

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