Post Politics
New home.
Still the best political coverage.
Page 2 of 2   <      

Sen. Dodd to introduce plan to overhaul financial regulatory system

Network News

X Profile
View More Activity

Corker, who said he spoke with Dodd over the weekend, said he expects the Democrat to introduce a bill that will be "a little to the left" of the compromises they reached. In particular, he said, he expects Dodd to propose giving the new consumer regulator more enforcement power over banks and non-bank lenders than Republicans have been willing to grant. People familiar with the measure said Dodd would seek to give the regulator enforcement power over banks with more than $10 billion in assets, as well as over some large nonbank lenders, such as mortgage brokers.

"He'll move to where he can pick up all the Democrats," Corker said. "He's got to go his own way on that one, we understand."

Corker said Dodd's new bill almost certainly would not get his and other Republicans' support. Still, he said it will be "a huge improvement" over the initial proposal that Dodd released last November.

"It will be a much better bill," Corker said. "I think this last month has helped produce a far better product."

People familiar with the bill said other measures include the establishment of a systemic risk council, composed of a collection of regulators and chaired by someone appointed by the president. In addition, firms such as Morgan Stanley and Goldman Sachs, which converted into bank holding companies during the financial crisis, would not be allowed to revert to their old status without government approval.

The bill also would create a mechanism that would allow the government to take over and wind down large, troubled financial firms. That resolution authority, as it is called, would be funded in part by an upfront fee paid by firms and possibly by assessments in the wake of a failure.

Dodd said staff members worked through the night Saturday and were headed for another late night Sunday, putting final touches on the bill. He said he hoped the result would be a proposal that prompts lawmakers to take a stand on the issues and move toward common ground.

"You've got to make choices. You've got to say yes or no," Dodd said. "It's decision-making time."


<       2

More in the Politics Section

Campaign Finance -- Presidential Race

2008 Fundraising

See who is giving to the '08 presidential candidates.

Latest Politics Blog Updates

© 2010 The Washington Post Company

Network News

X My Profile
View More Activity