Research Briefing

It’s Reid Who Ended Up In Bed With Fat Cats While GOP Stopped Wall St. From Obtaining Permanent Bailout Fund

SENATE MAJORITY LEADER HARRY REID (D-NV) CLAIMS: “The Republicans Are Having Difficulty Determining How They’re Going To Continue Making Love To Wall Street …” (Meredith Shiner, “Reid: GOP ‘Making Love’ To Wall St.,” Politico, 5/5/10)

BUT IT’S WALL STREET WHO FINANCED REID AND HIS SENATE DEMOCRAT MAJORITY

Democrat Majorities Were Financed By Wall Street Fat Cats, Accepting At Least $7,125,624 From Goldman Sachs Since The 2006 Election Cycle. (Center for Responsive Politics, OpenSecrets.org, Accessed 4/16/10)

Since His Last Election In 2004, Senate Majority Leader Harry Reid (D-NV) Has Accepted At Least $1,402,991 From The Finance And Commercial Banking Industries. (Center for Responsive Politics, OpenSecrets.org, Accessed 4/16/10)

And The DSCC Has Accepted At Least $3,907,970 From The Finance Industry This Election Cycle. (Center for Responsive Politics, OpenSecrets.org, Accessed 4/16/10)

REID RETURNED THE FAVOR BY PUSHING WALL STREET-ENDORSED OBAMA-DODD BILL WITH “UNLIMITED EXECUTIVE BAILOUT AUTHORITY” …

Reid Followed Lead Of President Obama Who Urged Democrats “Not To Cut A Deal With Republicans” On Financial Regulation Reform Bill. “President Obama and House Financial Services Chairman Barney Frank have personally urged Dodd not to cut a deal with Republicans. I asked Frank point blank why Dodd would want such a deal, and he said--on the record—’I have no idea, but both President Obama and I have urged him not to.’” (Robert Kuttner, “Obama Rejects Bipartisan Bank Deal,” The Huffington Post, 4/25/10)

Rep. Brad Sherman (D-CA) Says Obama-Dodd Bill Has “Unlimited Executive Bailout Authority,” “Something Wall Street Desperately Wants.” “But there are serious problems with the Dodd bill. The Dodd bill has unlimited executive bailout authority. That’s something Wall Street desperately wants but doesn’t dare ask for. The bill contains permanent, unlimited bailout authority.” (Politico’s “Health Care Arena,” 4/19/10)

That’s Why Goldman Sachs CEO, Llyod Blankfein, Says That He Supports The Dodd Bill And Agrees The “Biggest Beneficiaries Of Reform Will Be Wall Street Itself.” “I’m generally supportive. . . . [O]n the whole, financial reform is, absolutely is essential and I will say that last week, in New York, I listened to a speech by Barack Obama at Wall Street, and one of the points he made resonated with me because I’d said it myself. He said that the biggest beneficiaries of reform will be Wall Street itself.” (Homeland Security & Gov ernment Affairs, Permanent Subcommittee On Investigations, U.S. Senate, Hearing, 4/27/10)

And Citigroup CEO, Vickram Pandit, Endorses Obama-Dodd Bill. “I was gratified to hear you speak about these principles as the foundation of regulatory reform and you can count on me and the entire Citi organization to support them.” (Vickram S. Pandit, Letter To President Barack Obama, 4/23/10)

UNTIL REPUBLICANS MADE DEMOCRATS “RETREAT”

BY WORKING TO REMOVE PERMANENT BAILOUT FUND FOR WALL STREET

Sen. Mark Warner (D-VA) Admitted Republican Concerns About Obama-Dodd Bill “Are Legitimate”And That “Parts” Of The Bill “Need To Be Tightened.” “Sen. Mark Warner, the Virginia Democrat who has been closely involved in negotiations, said that concerns being raised by republicans about potential bailouts of large financial institutions are legitimate ... ‘There are parts that need to be tightened,’ Warner said, referring to the bill in the same manner as Sen. Richard Shelby, Alabama Republican and ranking member on the Senate Banking Committee.” (Jon Ward, “Obama Offers Simple Narrative Of GOP Obstruction, But Key Lawmakers Tell Another Story,” The Daily Caller, 4/27/10)

So Senate Republicans Worked In Bipartisan Fashion To Take Out $50 Billion Permanent Bailout Fund From Obama-Dodd Bill. “Senate Democrats have agreed to nix a proposed $50 billion fund that would help failing financial institutions unwind from the financial regulation reform bill. Removing the major sticking point from the bill could help clear the path for the measure, which still has a couple more high hurdles to jump, according to news reports. The bill’s new language, crafted by Senate Banking leaders Chris Dodd (D-Conn.) and Richard Shelby (R-Ala.) could reach the floor as one of the legislation’s first amendments, probably within the next day or two.” (Vicki Needham, “Proposed $50B Bailout Fund Nixed From Financial Regs Bill,” The Hill, 5/4/10)

The Associated Press Says Agreement To Take Out $50 Billion Permanent Bailout Fund “Marked A Retreat By Democrats.” “In a concession, Senate Democrats agreed Tuesday to jettison a $50 billion fund that Republicans attacked repeatedly as a perpetual Wall Street bailout-in-waiting, according to officials in both parties, clearing one of the key obstacles to approval of tougher federal controls over the financial industry … The agreement marked a retreat by Democrats, who had protested bitterly in recent days that Republicans were inaccurate with claims that the multi-billion-dollar fund would serve as a source for future bailouts.” (David Espo and Jim Kuhnhenn, “Tentative Senate Deal On Future Big Bank Failures,” The Associated Press, 5/4/10)