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.
No Deal Yet On Derivatives
Conference committee to take up derivatives today, without House-Senate deal in place. Politico: "...top Democrats told [Sen. Blanche Lincoln] the language was causing vote problems in the House, but she had no plans to budge ... Hoyer was leading a series of meetings, slated to include sit-downs with Lincoln, the New York delegation, members of the Congressional Black Caucus and the New Democrat Coalition and White House and Treasury officials..."
HuffPost's Ryan Grim says House counter-proposal to be considered today would somewhat weaken Lincoln language: "...the House offer does not alter Lincoln's most significant provision -- the swaps spinoff ... However, one analyst identified an end-run the House may be attempting ... a bank getting taxpayer assistance through the Federal Reserve window would still be required to spin off its swaps desk, but it could maintain it within a separate section of the bank holding company that isn't getting government assistance..."
NYT edit board lays out its criteria for strong derivatives reform: "...traded on transparent exchanges and processed through third-party clearinghouses ... the new rules must be broadly applied ... keep the definition of an 'exchange' narrow ... legal tools to stop or undo deals that have not been properly cleared or traded ... resist banks that want federal financial backing for derivatives clearinghouses ... separate banks’ derivatives dealing from federally insured deposits..."
Elizabeth Warren accepts compromise on consumer protection agency. HuffPost quotes: ""I'm disappointed that Congress seems to be taking the side of auto lenders ... But right now the bureau has the authority and the independence it needs to fix the broken credit market."
Feingold not expected to vote Yes. The Hill: "Feingold this week reiterated his view that the financial bill is not strong enough, underscoring the need for Senate Democrats to shore up at least a handful of Republican votes."
GOP Sen. Scott Brown not committing just yet. Boston Globe: "They're getting close ... I want to see everything before I decide whether or not I'm voting for this.”
Bank Brown seeks to protect is no innocent bystander. Time: "During the height of the financial crisis, Boston-based financial firm State Street, once one of the safest banks in America, became one of the industry's biggest risks ... One of the main culprits: highly leveraged investment vehicles, known as conduits ... Now Congress, as part of the financial reform legislation, is working on an exemption that would allow State Street to continue creating and investing in the conduits..."
How big a hedge fund loophole will Sen. Scott Brown get? TPMDC: "Multiple sources tonight say that in all likelihood the hedge fund loophole ... will be included in the offer ... An carveout allowing banks to invest a very small amount of capital, governed by strict trading rules might meet muster with reformers..."
House Dems drop resolution authority fund. W. Post: "House negotiators, seeking to reach agreement with their Senate counterparts over new far-reaching financial rules, dropped their proposal Wednesday for a $150 billion fund, paid for by industry, that would have been used to cover the costs of winding down large, failing firms. The upfront fund had drawn repeated criticism from Republicans..."
Some Senators looking to undermine deal on debit card swipe fees. Open Left's Kagro X: "Word is, so far so good for the swipe fee compromise worked out earlier in the week. And the best (and for now, perhaps the only) tool available to netroots activists during a fast-moving conference -- that is, our scrutiny -- is apparently having an impact. The previous report that Chuck Schumer (D-NY) was trying to engineer a deal to gut the swipe fee amendment was, by the time it was reported, already driving Schumer himself back onto the sidelines. So far, reports from conference watchers say he's not been able to work out a deal for a Republican Senator to offer up his amendment, but supporters of his amendment are still working their House contacts, notably Gary Peters (D-MI-09) and Dennis Moore (D-KS-03), to try to get that proposal on the table."
The End Of Jobless Aid Extensions?
"Grim" assessment before Senate vote on prospects for any additional stimulus to create jobs, shore up states and aid the jobless. HuffPost's Arthur Delaney: "'It looks like we're going to come up short,' said a senior Democratic aide on Wednesday evening. 'It looks like Republicans are prepared to kill aid to states, an extension of unemployment benefits, and ironically, the Republicans are prepared to kill efforts to close loopholes that allow companies to export jobs overseas.' ... Come Friday, 1.2 million people will lose access to the extended unemployment benefits, a number that will grow by several hundred thousand every week after that ..."
CQ reports that several wavering Senators are still wavering after Dems offer more cuts: "Maine Republicans Olympia J. Snowe and Susan Collins, along with Nebraska Democrat Ben Nelson, all seemed more positive about the bill (HR 4213) than they had been before. However, none committed to voting for the legislation ... That substitute amendment would trim the costs of Medicaid assistance to the states from $24.2 billion to about $16.2 billion, and use spending cuts to offset what remains."
House GOP threatens to block war spending bill if Dems include $10B to avert teacher layoffs, even though the spending is offset. Politico: "...the $10 billion to help teachers is less than half of what was first proposed and would be offset by spending cuts and about $4.4 billion in new legislative savings, chiefly at the expense of the drug industry."
House Dems propose $7B less spending than President for 2011 budget. CQ: "The cuts from Obama’s proposed budget have been resisted by progressives, including House Appropriations Chairman David R. Obey, D-Wis., but the fiscal hawks appear to have prevailed. So Obey has focused his efforts on adding the teacher funding to the war supplemental..."
New poll finds Americans want government to do more on the economy. Politico oped from Deepak Bhargava and Sara K. Gould: "A majority of people want government to take a larger and stronger role in making the economy work for average Americans, according to a new nationwide poll conducted by Lake Research Partners ... Those polled are less concerned about the federal budget deficit than they are about rising health care costs, lack of jobs with family-sustaining wages and the affordability of daily expenses such as food and gas."
Europeans resist calls for stimulus in advance of G-20 summit. AP: "Despite U.S. appeals to refrain from removing stimulus measures too quickly, country after country is rushing to slash spending and raise taxes ... Those cuts have raised worries in the United States that the world could be in danger of making the same mistakes leaders made back in the 1930s, when they withdrew government support too soon and prolonged the Great Depression ... Many private economists agree, arguing that while the United States and other nations have returned to positive growth, those gains have not been enough to put much of a dent in unemployment."
German leader rebuffs Obama. McClatchy: "During a pre-summit phone call this week, German Chancellor Angela Merkel rejected Obama's plea and stood by her government's moves to rein in spending."
Simpson's Social Security Lies Go Unreported
Mediaite's Tommy Christopher amazed at how little coverage there has been of WH debt commission chair Alan Simpson's YouTube'd tirade against Social Security: "...as Paul Krugman points out, Simpson just doesn’t know what he’s talking about. He’s using the same talking points that the Bush crowd did in their failed attempt to privatize Social Security. While it is a free country, and Simpson has every right to his opinion, should his hostility toward Social Security (based on faulty assumptions) disqualify him to lead the deficit commission?"
MoveOn calls on Simpson to resign: "You probably know a lot of good people who depend on their Social Security check. Who count every penny. Hard-working folks who have contributed their whole lives and now need those checks. Sen. Simpson thinks they're 'lesser people.'"
WH Seeks To Shelve China Currency Bill
Schumer resisting pressure from WH on China currency. The Hill: "The White House has pressed Sen. Charles Schumer (D-N.Y.) not to offer his China currency legislation as a floor amendment, where it would almost certainly be approved, according to two sources ... Schumer told The Hill: 'I won’t comment on my talks with Rahm.' Schumer on Wednesday said he and other senators will move forward with legislation..."
Behind The Poll
What you likely won't hear about today's NBC/WSJ poll. No. 1: Most say "job creation and economic growth" (33%) should be "the top priority for the federal government. Only 15% say "the deficit and government spending."
What you likely won't hear about today's NBC/WSJ poll. No. 2: Only 24% want a congressional candidate who "supports phasing out Social Security and instead supports allowing workers to invest their Social Security contributions in the stock market."
What you likely won't hear about today's NBC/WSJ poll. No. 3 63% support "an energy proposal designed to reduce carbon emissions and increase the use of alternative and renewable energy sources, even if it means an increase in the cost of energy?"
Climate Splits
Graham insists obstacle to more coastal drilling is his main sticking point on climate compromise. Politico: "The two-term senator explained that the idea of increasing offshore drilling 'resonated with people' back home. Once the BP spill took that possibility off the table, Graham figured he’d be foolish to jump on board with climate change legislation without getting his biggest ask. 'The problem is, the people I did business with, climate change is a religion to them,' Graham said. 'This has been a business deal for me. ... I think people somehow misread that I somehow woke up one morning with a message from God to go save the planet.'"
Renewable energy businesses and enviro groups split on short-term legislative priority. CQ: "A new group calling itself the Clean Energy Coalition called on the Senate on Wednesday to quickly pass legislation in July that would boost renewable energy and efficiency [but] did not insist that legislation set a price on carbon ... A coalition of 64 environmental groups took a different tack, calling on Democrats to bring a broader climate change measure along with energy to the floor."
Climate gridlock brings down Australian PM Kevin Rudd. New leader Julia Gilllard suggests she won't rush to act. Reuters: "Rudd's government was widely criticised for failing to fully explain the complex legislation that voters and business feared would increase costs and give overseas rivals a competitive edge. The opposition had labelled it a great big new tax, while the Greens said it was flawed and not ambitious enough, leading to policy paralysis ... '...in the future we will need [a price on carbon]. But first we need to establish a community consensus for action.' [said Gillard.]"
Enviros plan $11M ad campaign for climate bill. The Hill: "The groups did not provide specifics of the ad buy ahead of a Thursday rollout [but said] the campaign will target 'key senators' both before and after the vote on energy and climate legislation."
House GOP not so mad at Rep. Joe Barton. The Hill: "...House Republicans opted not to punish Barton for apologizing to BP last week ... House Minority Leader John Boehner (R-Ohio) told reporters, 'Mr. Barton apologized to the members for his poor choice of words, he retracted his statement last week and apologized and the issue is closed.'"
Gov. Bobby Jindal goes demagogue as feds suspend coastal dredging due to enviro concerns. CNN: "'This is a war,' Jindal said of the fight to protect shorelines from the approaching oil. 'Every hour, every day matters. Maybe they don't see the oil from Washington [but] we see it every day on our coast.' ... said Tom Strickland, the assistant Interior Secretary for Fish, Wildlife and Parks ... 'The diminishment and erosion of those barrier islands have in fact made the coastline more vulnerable to storm surges and so as those storms erode the integrity of the barrier islands, they then hit the coast with more force and they endanger human lives and the ecosystems even more.'"
Sens. Sheldon Whitehouse and Sherrod Brown propose solution to clean house when federal agencies become captive to industry:: "...allow our top national law officer, the Attorney General of the United States, to step in and clean house whenever an agency or element of government is no longer credibly independent of the industry it is intended to regulate. Upon such a finding, the Attorney General should have the power to hire and fire and take personnel actions, establish interim regulations and procedures, audit permits and contracts to assure they were not affected by improper corporate influence, and establish an integrity plan."
