Dodd, Shelby come to agreement over bailout provisions
Lead members of the Senate’s Committee on Banking, Housing and Urban Affairs have come to an agreement regarding bank bailouts in federal financial reform.
Democrat Chris Dodd and Republican Richard Shelby managed to come up with the amendment, which would take the $50 billion bank bailout fund out of the proposed legislation. Furthermore, the Federal Reserve Board will have to get the approval of the treasury secretary before partaking in emergency lending.
“Taxpayers should not incur losses from the bad outcome of private risks that they did not undertake,” Shelby said.
For months, Dodd worked with multiple members of the Banking Committee in an attempt to draft a financial reform bill that could get agreement on both sides of the aisle. After initial talks broke down with Shelby, Dodd turned to Tennessee Republican Bob Corker, though Shelby eventually returned to the negotiating table.
However, the final bill presented before the committee still passed along party lines and has faced continued Republican opposition in the full chamber. One issue is the creation of an independent Consumer Financial Protection Bureau, which would have the power to oversee financial products offered to Americans, including credit cards and home loans.
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