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This vote shows exactly how little Republicans care about the possibility for Too Big to Fail Banks to extort a taxpayer bailout in the future.

Senate Test Vote Shows Broad Support For Breaking Up Banks

The legislative language was complex, but the vote was understood as a simple question: Should big banks be broken up so that they no longer pose a risk to the financial system?

Eight Republicans joined the four Democrats in opposition: Sens. Judd Gregg (N.H.), Chuck Grassley (Iowa), Mike Enzi (Wy.), Jeff Sessions (Ala.), Mike Crapo (R-Idaho), John Ensign (Nev.), Lamar Alexander (Tenn.) and John Cornyn (Texas). (Cornyn said he backed making the banks smaller just last week.)

Sen. Jim Bunning (R-Ky.) was the lone Republican to join the Democrats in support:

Who were the craven Democrats?

Four Democrats opposed the amendment, standing with the big banks: Budget Committee Chairman Kent Conrad (N.D.), Bill Nelson (D-N.D.), Mark Begich (Alaska) and Mark Warner (Va.).

Protecting Too Big to Fail Banks from being cut down to a manageable size so they can't threaten the larger economy..

..is far more likely to lead to more taxpayer bailouts for Big Banks in the future, than a Bank funded $50 billion Resolution Fund is as the Republicans would try to misdirect our attention. Sen. Bernie Sanders introduced an amendment to the budget resolution that would have created the authority to break up Too Big to Fail Banks. These big banks have grown so enormous even their top managers probably can't know everything their far flung organization is involved in.

Frank Rich writes:

Fight On, Goldman Sachs!        

But now we’ve learned that Blankfein was actually, if inadvertently, on the side of the angels. It’s his myopic, unrepentant truculence that left Goldman exposed to a Securities and Exchange Commission accusation of fraud that will be litigated in public rather than bought off in private. And it’s that S.E.C. legal action that has, in a single week, radically transformed the politics and prospects for financial reform in America.

In just that week, the Party of No’s intransigent campaign of obstruction and obfuscation went belly up. The Obama White House moved to get its act together with an alacrity lacking in its health care campaign, abruptly adding Thursday’s New York speech to the president’s schedule. The bipartisan Financial Crisis Inquiry Commission at last issued its first subpoena — to Moody’s, one of the rating agencies that for a fat fee slapped AAA ratings on the toxic garbage Goldman packaged and sold to benighted suckers on the other end of a huge bet placed by a favored client, the hedge fund player John Paulson.

Salutary as this rush of events is, it still adds up so far to just one small step for mankind. We don’t yet know how many loopholes lobbyists will slip into the bill-in-progress. We don’t yet know the outcome of the S.E.C. case, let alone what other much-needed legal pursuit of Wall Street may follow it. And we still don’t know what, if any, true correction lies ahead for the financial sector’s runaway casino culture — much of it legal — that turned a subprime-mortgage bubble in a handful of overheated American states into an international economic meltdown.

While he couldn't bring himself to vote for Sen. Bernie Sanders Too Big to Fail amendment Chuck Grassley has shown signs of not towing Mich McConnell's Party Line on the Financial Reform Bill.

Three craven Republicans who voted to keep the Too Big to Fail Banks too big are up for reelection this year. They are Mike Crapo (R-Idaho), Chuck Grassley (Iowa), and John Cornyn (Texas). Grassley  would seem the most vulnerable to having his favors for the Too Big to Fail Banks exposed during the campaign.

Originally posted to Lefty Coaster on Sat Apr 24, 2010 at 07:12 PM PDT.

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Comment Preferences

  •  Shower Grassley + Gregg w the SHAME they deserve (6+ / 0-)

    "These old Wall Street boys are putting up an awful fight to keep the government from putting a cop on their corner." - Will Rogers

    by Lefty Coaster on Sat Apr 24, 2010 at 06:38:27 PM PDT

    •  Well, Grassley is w/us on derivatives...... (1+ / 0-)
      Recommended by:
      Lefty Coaster

      Not defending the guy any more broadly than that, he was a lying sack of shit on health care reform, and he's otherwise against us on most else.

      But the politics of the Wall Street reform bill are complicated, we get Grassley on derivates, we get Bunning on breaking up big banks, and who knows who else we get on other things?

      I agree on being unhappy with the 4 Dem defectors, and I'm particarly disappointed one of my own Senators, Mark Warner, is in that group, although his vote and the other 3 are no surprise insofar as they're frequent defectors.

      I'm not confident breaking up big banks will be in any final bill, as much as I wish it were.  If they at least get Lincoln's tough derivatives bill into the final reform law, that will make me happy, frankly even more so than the consumer protection commission or much else.

      In a time of war, is that really the time to be asking whether we should be at war?...When it is over we should ask whether we should leave. -- Stephen Colbert

      by DCCyclone on Sat Apr 24, 2010 at 07:25:04 PM PDT

      [ Parent ]

  •  Gregg is retiring (1+ / 0-)
    Recommended by:
    Lefty Coaster

    he doesn't care.

    People panic too much on this site.

    by thematt523 on Sat Apr 24, 2010 at 07:37:24 PM PDT

  •  Why wouldn't the GNOP vote that way? (2+ / 0-)
    Recommended by:
    Lefty Coaster, Terra Mystica

    Don't they consider themselves 'too big to fail'?
    But based on their track record of late they may want to undertake an Epic study of the word Fail.....

    it tastes like burning...

    by eastvan on Sat Apr 24, 2010 at 07:37:37 PM PDT

  •  Bunning voted with us? Really? (0+ / 0-)

    Only explanation I can think of is that McConnell told him to vote against it.

    Listen, strange women lying in ponds distributing swords is no basis for a system of government.

    by Dbug on Sat Apr 24, 2010 at 08:35:17 PM PDT

  •  I wonder if Shelby didn't make a deal to get the (0+ / 0-)

    big NASA programs re-instated.  Obama reversed himself pretty quickly on that.  Now this.

    "Dega dega dega dega. Break up the concrete..." The Pretenders

    by Terra Mystica on Sun Apr 25, 2010 at 02:00:51 AM PDT

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