Obama Meets Resistance From G.O.P. on Finance Bill
By SHERYL GAY STOLBERG and DAVID M. HERSZENHORN
Published: April 14, 2010
WASHINGTON — In the face of stiff opposition from Senate Republicans, President Obama urged leaders of both parties in Congress to spend the next few weeks coming to terms on a financial regulation bill that would head off the need for bailouts in the future and bring the trading of complex financial instruments out of the shadows.
During a meeting with leaders of Congress from both parties in the Cabinet Room Wednesday morning, the president rejected the contention of Republicans — and notably their leader in the Senate, Mitch McConnell of Kentucky — that the measure offered by Senate Democrats would only make bailouts of gigantic, risk-laden institutions more likely.
“I am absolutely confident that the bill that emerges is going to be a bill that prevent bailouts — that’s the goal,” Mr. Obama said, with Mr. McConnell sitting impassively nearby.
Mr. Obama is fresh off his big health-care victory, and the financial reform measure will be a test of how much clout he now has on Capitol Hill. But while the president expressed confidence at the outset of the session that the two parties could work together to produce “an effective bipartisan package that assures we never have too-big-to-fail again,” the leaders did not sound nearly as confident after the nearly hour-long session.
Facing reporters on the driveway outside the West Wing, Mr. McConnell repeated his assertion that the Senate bill, which would create a $50 billion fund to rescue financial companies that are so big their failure would endanger the economy, would foster a climate of repeated bailouts. He demanded the resumption of bipartisan talks in the Senate, which fell apart last week.
“My message to the president, quite simply, was, ‘Let’s get back to the table,’ ” Mr. McConnell said. A few minutes later, the Democratic leadership came out and made clear they intend to press forward with or without the support of the Republican leadership.
“This is the same stall we got on health care,” said the Senate Democratic leader, Harry Reid of Nevada.
more:
http://www.nytimes.com/2010/04/15/business/15regulate.html?hp.