Progressive Democrats balked at a deal Monday night that would
provide taxpayer backing for risky Wall Street trading, roiling
negotiations to stave off a government shutdown just days before the
deadline.
Bank lobbyists have been pushing the provision for several days, earning the ire of bank-reform-minded Democrats including Sen. Sherrod Brown (Ohio) and Rep. Maxine Waters (Calif.), the top Democrat on the House Financial Services Committee.
Those objections hit critical mass late Monday, as word spread on Capitol Hill that Democratic negotiators had agreed to a bid from House Appropriations Committee Chairman Hal Rogers (R-Ky.) that would effectively subsidize much of the derivatives business. In exchange, Senate Appropriations Committee Chairwoman Barbara Mikulski (D-Md.) secured additional funding for the Commodity Futures Trading Commission, the agency tasked with overseeing derivatives, the complex financial contracts at the heart of the 2008 meltdown.
Democrats on the Senate Banking Committee were livid about the deal, after fighting similar proposals for years. Committee members Brown and Sen. Jeff Merkley (D-Ore.) penned a letter with Sens. Carl Levin (D-Mich.) and Tom Harkin (D-Iowa) on Friday, urging Mikulski and Senate Majority Leader Harry Reid (D-Nev.) not to accept any deal reinstating subsidies for derivatives.
"We urge you to oppose inclusion of provisions modifying or repealing this reform in any funding legislation," the letter reads.
Sen. Elizabeth Warren (D-Mass.) blasted the proposal in a written statement provided to HuffPost.
"Rolling back derivatives rules in Dodd-Frank would be reckless," Warren said. "Middle class families are still paying a heavy price for the decisions to weaken the financial cops, leaving Wall Street free to load up on risk. Congress should not chip away at important reforms that protect taxpayers and make our economy safer."
Read more: Elizabeth Warren Joins Revolt Against Wall Street Deal In Government Shutdown Talks
Bank lobbyists have been pushing the provision for several days, earning the ire of bank-reform-minded Democrats including Sen. Sherrod Brown (Ohio) and Rep. Maxine Waters (Calif.), the top Democrat on the House Financial Services Committee.
Those objections hit critical mass late Monday, as word spread on Capitol Hill that Democratic negotiators had agreed to a bid from House Appropriations Committee Chairman Hal Rogers (R-Ky.) that would effectively subsidize much of the derivatives business. In exchange, Senate Appropriations Committee Chairwoman Barbara Mikulski (D-Md.) secured additional funding for the Commodity Futures Trading Commission, the agency tasked with overseeing derivatives, the complex financial contracts at the heart of the 2008 meltdown.
Democrats on the Senate Banking Committee were livid about the deal, after fighting similar proposals for years. Committee members Brown and Sen. Jeff Merkley (D-Ore.) penned a letter with Sens. Carl Levin (D-Mich.) and Tom Harkin (D-Iowa) on Friday, urging Mikulski and Senate Majority Leader Harry Reid (D-Nev.) not to accept any deal reinstating subsidies for derivatives.
"We urge you to oppose inclusion of provisions modifying or repealing this reform in any funding legislation," the letter reads.
Sen. Elizabeth Warren (D-Mass.) blasted the proposal in a written statement provided to HuffPost.
"Rolling back derivatives rules in Dodd-Frank would be reckless," Warren said. "Middle class families are still paying a heavy price for the decisions to weaken the financial cops, leaving Wall Street free to load up on risk. Congress should not chip away at important reforms that protect taxpayers and make our economy safer."
Read more: Elizabeth Warren Joins Revolt Against Wall Street Deal In Government Shutdown Talks
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