Mitch McConnell expressed his criticism of the financial regulatory reform bill that is currently being considered by the Senate. Members of both parties are hoping that they will be able to work towards a bipartisan agreement as the bill goes to the Senate floor.
Democrats Deny Statements
In an interview with the Washington Post, Senator McConnell was quoted as saying that the bill “wouldn’t solve the problems that led to the financial crisis.” In fact, he went so far as to say that the bill institutionalized taxpayer-funded bailouts for Wall Street banks.
Democrats vehemently denied these statements, saying that the bill eliminates the exposure experienced by the consumer due to large bank failures. The goal of the bill, said supporters such as Deputy Treasury Secretary Neal Wolin and deputy communications director Jen Psaki, was to ensure that the industry is responsible for its own financial burdens, rather than the taxpayer.
Working for a Bipartisan Bill
McConnell will have his work cut out for him if he is attempting to keep Republicans opposed to this bill, as many are hoping to be able to reach a compromise on the bill. Some of the key issues on which a consensus remains to be reached are issues surrounding how to best protect consumers, how large banks will be safely dismantled, and what to do with the shadowy world of the deriviatives market.
President Obama is set to discuss the bill today with representatives of both parties, in an attempt to make progress on a compromise over the regulatory overhaul bill.