Democrats dump bank tax from financial reform bill

[jefferson_dem]

:hide:

Democrats dump bank tax from financial reform bill

(Reuters) - Democrats on Tuesday stripped out a controversial tax from their landmark financial reform bill in a scramble to win the votes needed to pass it through Congress.

Democrats hoped the change would draw enough moderate Republicans to allow them to pass the sweeping overhaul through both chambers of Congress and send it to President Barack Obama to sign into law by July 4.

Though a supposedly final version of the bill had been hammered out last week, Democrats called a fresh negotiating session after support for the bill appeared to be waning.

Heeding the concerns of moderate Senate Republicans, they axed a $17.9 billion tax on large financial institutions that was added to cover the bill's costs in the wee hours on Friday as lawmakers wrapped up an all-night bargaining session.

Their new plan would cover most of the bill's costs by shutting down the government's $700 billion bank bailout fund ahead of schedule. It also would raise the amount that banks must pay to insure their customer's deposits.

"I'm prepared to make some compromises to get this very important bill through," said Democratic Representative Barney Frank, who has overseen the process.

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http://www.reuters.com/article/idUSTRE65L4A920100629

[flpoljunkie]

1. Ezra Klein's thoughts on this deal: It's good to be number 60

So rather than a bank tax, which Scott Brown worried would take capital out of the banking system, we're going to drop part of the TARP program that was ... putting capital into the banking system. And rather than making big banks and big hedge funds foot the bill, FDIC fees will be hiked so that small banks have to pay in but hedge funds don't.

http://voices.washingtonpost.com/ezra-klein/2010/06/its_good_to_be_number_60.html

[jefferson_dem]

2. I like that there just might be a "breakthrough" that allows finreg to pass.

I don't like the deal and I definitely don't like that Scotty Brown is now the "king making" swing senator - the new Lieberman. :grr:

[Jennicut]

6. Well, I predicited the bank fees would be dropped this morning.

And yeah, Brown will only sometimes maybe sort of deal with the Dems after he gets what he wants. It is beyond lame. They need to do a muclear option or something.

[vaberella]

11. Do I blame Feingold for this? n/t

[Jennicut]

13. I don't know, Brown bucked on them too. I blame the 60 votes needed to stop a filibuster.

Reform is needed or get rid of it altogether. It is not being used the right way anymore. What is the point of having a majority in the Senate when you essentially become the minority because of it?

[Name removed]

3. Deleted message

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[Donnachaidh]

4. okay, so what other problems do the pukes have with this bill?

Because you KNOW this isn't going to be the last cut. They smell blood in the water - and will play till it's gutted.

[Smashcut]

5. Lesson to GOP - just object, we'll cave!

Gosh I wonder if they'll come up with other "deal-breakers" now?

[BlueIdaho]

7. Republicans will always find a reason not to vote for democratic bills. Nt.

[Rosa Luxemburg]

8. why don't they put forward a new bill with the bank tax in it after the other passes?

then they could tack on something to a new bank tax bill that the Repubs can't vote against. There are ways and means of getting these dogs to beg.

[IOKIYAL]

9. Thanks Feingold

you know, if Feingold was a known centrist, the Left would be shouting that he teamed up with Scott to sink the bill or to get rid of the $19 billion fund to please his donors. but he's a certified Liberal and everything they do is principled.

[jefferson_dem]

10. +1.

True.

[apartheus]

12. Is there a list of Democrats who voted to strip this tax?

Anywhere? Did most Dems. or a minority of Dems. vote to strip it.

[JamesA1102]

14. It was taken out in conference, not by a vote. nt