WSJ - "Grassley Bucks GOP, Backs Derivatives Curbs" Or, McConnell Overplays His Hand

[TomCADem]

McConnell, Cornyn, and Saxby Chambliss were taking a hard line on derivatives regulation. However, the Democrats, lead by President Obama finally decided to push forward and dare the Republicans to filibuster and prevent debate on the bill. Now, the bottom is beginning to fall out, because who wants to be the hold out and demand that Big Banks should continue to freely participate in the derivatives market without regulation? I imagine there will be a few holdouts who insist that derivatives regulation will hurt the economy despite the meltdown of 2008.

http://online.wsj.com/article/SB10001424052748704133804575197962008213550.html?mod=WSJ_hpp_LEFTTopStories

WASHINGTON—Democrats won the support of a senior Republican who voted in a Senate committee Wednesday for a sweeping overhaul of the market for derivatives, the complex financial instruments at the heart of the financial crisis.

The backing from Sen. Charles Grassley (R., Iowa) is the first sign of what Democrats hope will be an eventual wave of Republican support. He was the first Senate Republican to support any part of the financial-rules overhaul.

The move was also significant because Mr. Grassley said he favored one of the bill's most controversial elements, a provision that could force Wall Street banks to spin off their derivatives trading desks.

The 13-8 vote in the Senate Agriculture Committee came as Senate lawmakers appeared to be inching closer to a deal on a broader remake of market rules. Although differences remain, the populist and bitter rhetoric that infected the debate over financial regulations has cooled.

[TheOther95Percent]

1. McConnell Tried to Make a Deal with Wall Street

McConnell probably thought he could keep the Caucus united against reform. He doesn't understand that a number of GOP senators have realized support from Big Banks or Wall Street is a "toxic asset."

[TomCADem]

4. The provision forcing Wall Street banks to spin off their derivatives trading desks...

...is the best news and 180 degrees from the "bi-partisan" deal that Republicans were entertaining while they bad mouthed the bill. Instead, by trying to blow up the bill and bad mouth it while they tried to weaken it, the Republicans freed the Democrats to come down hard on Wall Street. In other words, by accusing Democrats of trying to pass a bailout bill while trying to remove derivatives regulation, the Republicans ended up with a bill that regulates derivatives.

Now, Republicans are trying to "negotiate" again, because they lost their leverage by relying on the Frank Lutz talking points.

[TheOther95Percent]

6. Poor babies.

Game. Set. Match.

[gratuitous]

2. Poor Mitch McConnell

Nobody skeered of your big money bankster friends anymore? Folks in the Senate decide they need a little oversight after all? Dang, I would love to see Mitch as the former Senator from Kentucky.

[Shanti Mama]

3. Grassley deserves some DU flowers

Anyone know how to organize this?
I know nothing about him or Iowa politics but a show of support for doing the right thing is always a good idea.

[EJSTES2005]

5. Flowers ?

Fuck Grassley and the horse he rode in on. Tomorrow he will be on pills show apologizing for clicking the wrong button on his vote. Wonder when he will be interviewed on Faux to explain his vote...........