Democrats and Republicans work together on financial regulatory reform

Richard Shelby (R-Ala.)
Richard Shelby (R-Ala.) (David Scull - Bloombergnews)
Thursday, December 17, 2009

Four Democrats and four Republicans on the Senate Banking Committee are working in bipartisan pairs on the major issues of financial regulatory reform. It's an unusual arrangement in the Senate, usually sharply divided on partisan lines.

Dodd, the chairman, and Shelby, the ranking Republican on the committee, are discussing how to reduce the number of government agencies responsible for bank regulation, and what to do to enhance consumer protection.

Corker and Warner are talking about how best to wind down large financial firms that fail the way Lehman Brothers and AIG did last year, and also the possible regulation of financial firms that are not banks, such as mutual funds and hedge funds.

Crapo and Schumer are assigned the subjects of corporate governance and executive compensation.

Gregg and Reed are considering how to regulate the agencies that rate the quality of bonds, and what to do about the exotic financial instruments known as derivatives.

-- Robert Kaiser

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