Each morning, Bill Scher and Terrance Heath serve up what progressives need to affect change on the kitchen-table issues families face: jobs, health care, green energy, financial reform, affordable education and retirement security.
Wall Street Reform May Hit Senate Floor Next Week
Sen. Maj. Leader Harry Reid moves to bring Dodd bill to the Senate floor next week. Bloomberg: "Democrats 'have negotiated enough' with Republicans, the Nevada Democrat said at a news conference yesterday in Washington. 'It’s time we start legislating.'"
W. Post on the Dem strategy: "...pressure Republicans by daring them to make an election-year vote against legislation that Democrats have portrayed as essential to reforming Wall Street.""
Politico identifies eight possible GOP "yes" votes: "In addition to such perennial GOP maybes as Graham and Sens. Susan Collins and Olympia Snowe of Maine, lobbyists are also talking about Republican senators closer to the core of the party who might side with Obama, including Bob Bennett of Utah and perhaps even John McCain of Arizona."
Sen. Susan Collins preventing Sen. Min. Leader Mitch McConnell from leading unified opposition to Dodd bill. The Hill: "A GOP aide said Collins is the only Republican senator who has not signed a letter promising to filibuster a motion to proceed to the bill unless Democrats reopen bipartisan negotiations. The letter has not been made public."
Two other GOP senators sign their signature does not mean absolute opposition. Bloomberg: "'What I think the letter says is, let’s get a bipartisan template in place before we go to the floor,' [Sen. Bob] Corker said. Alabama Senator Richard Shelby, the ranking Republican on the banking panel, said 'the spirit' of the letter 'is to try to get a good substantive bipartisan bill.'"
Balloon Juice's John Cole argues Wall Street and conservative leaders are making a deal — perpetual bailouts for perpetual campaign funds: "Wall Street and the bankstas don’t want that- which is why they flew Cornyn and McConnell to NY, told them they would bankroll the Republicans if only they killed this bill, and McConnell went right to the Senate podium and lied his ass off. Not only was he lying, but he was doing everything he could to make sure there would be bailouts forever."
NYT's Paul Krugman slams McConnell for do-nothing position:: "...he was objecting not to the existence of fire departments, but to legislation that would give the government the power to seize and restructure failing financial institutions. But it amounts to the same thing. ... letting banks fail ... is a bad idea for the same reason that it’s a bad idea to stand aside while an urban office building burns. In both cases, the damage has a tendency to spread."
Baseline Scenario's Simon Johnson sees opportunity to strengthen Dodd bill: "...you may think you have a backroom deal, but when it surfaces and people begin to do the math, the backlash can move things in an unpredictable direction."
Geithner, other Dems, may be worried Sen. Blanche Lincoln's derivatives bill is too tough. WSJ: "Mr. Geithner ... said new financial rules must create restrictions on how over-the-counter derivatives are traded... But he notably stopped short of endorsing a proposal from Ms. Lincoln to force large banks to spin off derivatives trading businesses entirely ... Some Democrats are worried that her proposal might be so controversial it could imperil the broader chances of the bill's passage ... [The bill] hasn't been unveiled and is being closely held ... Ms. Lincoln's committee could hold a vote on her bill next week..."
Treasury looking to tweak Dodd bill to allow for faster action to seize failing banks. Bloomberg: "The Senate proposal gives the Federal Deposit Insurance Corp. authority to borrow from the Treasury as much as 90 percent of the 'fair value' of a firm’s assets to cover operational costs while it is in receivership. Treasury officials say such a limit could lead investors to wonder whether a firm could meet its obligations, and they worry that “fair value” is too restrictive and could be distorted in a panic. Dodd and the FDIC say the 90 percent cap limits risks to taxpayer funds ... The Senate bill would require regulators to get a bankruptcy panel’s approval to seize a failing firm. Treasury officials want to limit the approval process ... McConnell said this week that big financial firms ought to turn to bankruptcy, not government assistance, when they run into trouble. Geithner has said banks are different from other companies and need extra help with ensuring emergency liquidity."
Senate Climate BIll Expected in 10 Days
April 26 planned date for Kerry-Graham-Lieberman climate bill introduction. W. Post: " ... the definitive date shows the senators are coming close to finalizing their package. [White House] spokesman Ben LaBolt tamped down Graham's idea to raise gas taxes as part of any climate deal. The rift could damage the chances of a compromise."
Details still unknown. CQ: "no legislative language has been circulated, prompting grumbling from some industry groups and lawmakers that they are being asked to back something they have not seen. Aides said the date for the bill’s release should be solid, because celebrities are expected to attend the event."
10 Senate Dems insist on manufacturing protections in upcoming climate bill. The Hill: "...a 'firm price collar' on the cost of emissions allowances and some free allowances set aside for 'energy-intensive, trade-exposed' industries ... 'carbon tariffs,' to prevent companies operating in countries without strong emissions requirements from gaining a competitive advantage ... federal laws should trump state climate laws where inconsistencies exist..."
Mother Jones' Kate Sheppard sees move as positive sign for ultimate passage: "Is this a good sign in the final days before a bill is to be released? I would venture to say yes ... A clear wish-list is likely a good sign that they are considering supporting the bill..."
Climate Progress' Joe Romm raises concerns about low carbon price, accepting of pre-empting EPA regs: "...it remains quite important to keep the ceiling of the price collar as high as possible — and rising at a rate of, say, 5% plus inflation a year. If there is horse trading, then any reduction in the starting price for the ceiling should be matched by an increase in the starting price for the floor ... There seems little chance of getting anywhere near the number of Senate votes needed for a bill that doesn’t preempt the EPA (same for the House) ... it would be valuable for EPA to keep this authority under climate legislation, but is not one of the top five things I would change about the climate bill if I could."
Sen. Graham's hometown paper The State lavishes praise on him for leadership on climate. Columnist Warren Bolton: "Not only should Sen. Graham be thanked for working on the climate issue, but ... for the way he's gone about it ... he's made South Carolina proud while others in his party ... have managed to do otherwise in recent years ... like our baby Sen. Jim DeMint, who tends to want every issue to be Mr. Obama's Waterloo. But grownups tend to see the big picture and work to get things done."
W. Post' s Steven Pearlstein optimistic for climate compromise: "Many in the environmental community have come around to Kerry's view that this is the best shot they are going to have anytime soon at passing comprehensive energy and climate change legislation. And parts of the business community have come around to Graham's view that they can't afford another decade of uncertainty over regulatory issues ... there is a good chance that the bill will gain the support of oil giants BP, Shell and ConocoPhillips, along with major electric utilities and industrial corporations."
Pentagon moves to block construction of nation's largest wind farm in Oregon, kill 16,000 jobs. W. Post: "The Pentagon is ... arguing that the giant turbines could interfere with an Air Force radar system. The Pentagon's objections could put at risk three other major wind projects in the same region, along with proposed farms in states from Illinois to Texas. ... [Sen. Ron] Wyden has indicated that he will put a hold on the nomination of Sharon Burke, who is in line to direct the Defense Department's Operational Energy Plans and Programs, until the two sides can reach agreement."
Filibuster Broken, Jobless Aid Extended
Senate clears two-month jobless aid extension, signed into law. LAT: "The Senate passed the $18-billion measure, 59 to 38, with the support of 54 Democrats, three Republicans and two independents. Every other Republican opposed it; the other three Democrats were absent."
Sen. Max Baucus backing $90B bank tax, possibly to offset cost of further unemployment extensions. CQ: "How the money will be used depends on whether and how quickly lawmakers can coalesce around a version of the tax that can become law. 'The Senate’s hungry for offsets,' Baucus said. 'Whichever [bill] comes along first tends to soak it up.'"
Insurers Waste No Time Trying To Wriggle Out Of Health Regs
HuffPost's Dan Froomkin reports insurers seeking to skirt law mandating most money from premiums go toward actual health care: "Health insurance companies are already starting to game a key element of health care reform months before it even takes effect, according to a new report from the Senate Commerce Committee. ... Effective January 1, 2011, health insurers will be required to spend at least 80 cents out of every premium dollar in the individual and small group markets, and at least 85 cents in the large group market -- or refund the difference to consumers in the form of rebates. So what's a health insurance company to do? Reclassify non-medical expenses as medical, of course."
