Opinions all over the map on House bill
As the House passed financial reform legislation last Friday, it is very interesting to look at various statements published by different interested parties. This post on our blog includes links to the ABA and ICBA statements. But I am interested in the contrast between statements from the two Minnesota Representatives who serve on the House Banking Committee. Here is Rep. Keith Ellison on the legislation (he voted for it) and here is Rep. Michele Bachmann’s take on the legislation. (She voted against it.)
Rep. Erik Paulsen, representing Minnesota’s 3rd District, also is on the committee. Here was part of his contribution to the discussion. His amendment to end the TARP program by the end of this year didn’t go anywhere; he voted against the financial reform bill.
Minnesota State Senator Tarryl Clark is running against Bachmann for the 6th Congressional District seat. The election is almost a year away, but Clark is taking shots at Bachmann. Here is Clark’s response to Bachmann’s statement. Also interesting, here is analysis from one local blog, “Let Freedom Ring.”
While there are a few things to like about the House bill, ultimately it adds more regulation onto an already highly-regulated banking industry. More rules and regs are just going to make it more difficult for community bankers to serve customers. If those banks survive, it will surely mean more fees and fewer options for customers. A much better approach would have been to craft legislation aimed solely at the shadow banking sector, that is the non-banks that really caused most of the problems that led to our financial crisis.
I have a hard time believing the financial industry reform legislation under consideration in the Senate, drafted by Sen. Chris Dodd, will go anywhere soon. This battle could drag well into 2010; if the Senate doesn’t pass a bill by spring, it is quite possible there will be no reform legislation at all until a new Congress comes to town. Once summer hits, attention will turn to the fall elections and interest in financial reform legislation by our elected officials will fall off considerably.
