Senate passes financial reform — how to localize it
Hundreds rallied on K Street in Washington on May 17, 2010, in support of financial reform in this photo by Flickr.com user americans4financialreform. The Senate passed its version of the bill on May 20.
The scope of the 1,500-page legislation is broad; it could end up covering everything from the arcane derivatives market to time payments made to orthodontists. We’ll soon know. The previously passed House version will be reconciled in conference committee with the Senate version. Sponsors have said they hope to present a final bill for President Obama’s signature by July 4.
Here’s a Wall Street Journal piece that outlines key elements of the legislation, along with a handy timeline sidebar.
One way to help local readers make sense of the law – dubbed the Restoring American Financial Stability Act of 2010 – is to take a look at the amendments that are proposed and pending. They give insight into the loopholes and special-interest deals that pockmark what is supposed to be, ultimately, a consumer-protection bill.
U.S. PIRG has amendment-tracking tools here, on its website, including a tally (it’s not clear how up-to-date it is) of how senators voted. Tracking back on your representatives’ aye or nay on various issues – and their reasoning – might be one way of localizing the progress of the reform bills.
Using the amendments to tally up which local businesses and financial institutions may be exempt – either due to their size or their lines of business – would be an eye-opener for your audience.
One amendment that the Senate killed Thursday, for example, would have exempted automobile dealers from new oversight into financing practices. There’s still a version of that exemption alive in the House bill, reports say.
Also, payday lenders got a last-minute reprieve Thursday when an amendment that would limit the number of loans they make to consumers was thrown out. This excellent Los Angeles Times piece explains how that happened.
As I wrote in a blog post earlier this week, the Small Business Safe Harbor amendment would exempt companies like orthodontists, jewelers and others that offer financing arrangements to consumers but that don’t securitize their loans or engage in lending as a primary business.
Another amendment being sought by the Angel Capital Association would ease rules surrounding these groups and individuals that raise capital for small businesses. This Portfolio piece explains more about the provisions.
Other resources:
- The Pew Economic Policy Group’s Financial Reform Project is an excellent clearinghouse for news and information; the site offers a subscription to its e-mail alerts.
- Americans for Financial Reform is a coalition of 250 groups, agencies and trade groups ranging from AARP to the AFL-CIO to the NAACP and Public Citizen.
- This Financial Reform Watch blog by noted Washington lobbyists Blank Rome Government Relations LLC is a good reference site and features numerous timely links. (Obviously you want to be aware of bias when interpreting the commentary, but it’s a handy shortcut site for finding related news and resources.)
- And finally, Wonkbonk, The Washington Post blog by Ezra Klein, offers a free, daily e-mail roundup of economic and domestic-policy developments in Washington, including financial reform. You can sign up for it here.
