This week, Senate Banking Committee Chairman Chris Dodd (D-CT) released the latest version of his financial regulatory reform bill, which aims to correct the deficiencies in the financial system that led to 2008’s economic crisis. The House of Representatives has already passed a comprehensive regulatory reform bill, and now that Dodd has given up on negotiating with recalcitrant Republicans, he is moving on an expedited timeline, with a markup scheduled for Monday.
It’s taken the Senate a year and a half after the financial crisis to even get to this point, but House Minority Leader John Boehner (R-OH) told “an enthusiastic crowd of bankers” today that, even if the Senate passes a bill, reconciling it with the House version will take another year. “If the Senate is able to produce a bill, I think it’s just as likely that we’ll be talking about the same issue a year from now as we are right now,” Boehner said at the American Bankers Association government relations summit.
“Don’t let those little punk staffers take advantage of you and stand up for yourselves,” Boehner said. “All of us are hearing from our friends and constituents on lack of credit, you can’t get a loan, the more your government takes and taxes, the more regulations you have to comply with the more cost you have there and less amount you are going to have available to loan to customers.”
The fact that he’s willing to let another year lapse without putting in place new rules for Wall Street shows exactly where Boehner’s priorities lie. But it should come as no surprise, considering what Republicans have been up to this year.
In February, Boehner met “over drinks” with JP Morgan Chase CEO Jamie Dimon, where he “made a pitch” for Wall Street support by explaining that “Republicans had stood up to Mr. Obama’s efforts to curb pay and impose new regulations.” Senator John Cornyn (R-TX), chairman of the National Republican Senatorial Committee, “said he visited New York about twice a month to try to tap into Wall Street’s ‘buyers remorse'” with Democrats. These pitches had some effect too, as in 2009, “major Wall Street players began sending an increasing share of their donations to Republicans.”
Prior to Boehner’s speech, American Bankers Association President Edward Yingling urged delay in the financial reform effort, because “every day that passes gives more leverage to [Banking Committee Ranking Member Richard Shelby (R-AL)].” In his career, Boehner has received $3.4 million from the financial services industry, which is $1.2 million more than he’s received from any other industry.