Shelby: With Impasse, Economic Harm in Financial Regulation Bill

Sen. Richard Shelby (R-AL) has issued a statement on the negotiations over the financial regulation legislation, “Shelby: Negotiations with Dodd Reach Impasse.” Excerpt:

This bill still contains a sprawling new consumer protection bureau that will find and force its way into facets of our economy that had nothing to do with the housing crisis. This massive new bureaucracy would have unchecked authority to regulate whatever it wants, whenever it wants, however it wants. I am aware of no other arm of the federal government this powerful, yet so unaccountable. In my negotiations with Chairman Dodd, I have consistently supported strengthening consumer protections. I have also advocated for a sensible and meaningful role for safety and soundness regulators in this new agency’s operations. Unfortunately, despite my demonstrated willingness to propose compromise solutions, this sensible step has proved to be a bridge too far.

Also included in this legislation are critical provisions relating to derivatives. These provisions, which Democrats developed on their own behind closed doors, were only very recently inserted into the bill. In fact, I was not provided the opportunity to share my views on a single aspect of the derivatives provision. While I firmly believe we must end the casino-like atmosphere on Wall Street, I also believe we must protect Main Street’s ability to create jobs and grow the economy. In my judgment, the provisions as currently drafted would have far-reaching and devastating effects on these businesses and our economy, increasing the cost of nearly every product we use and negatively impacting job growth.

 The bill is S. 3217, Restoring American Financial Stability Act of 2010.

 UPDATE (4:10 a.m.): Senate Republican Leader Mitch McConnell issues a statement, “Key Agreement Reached on Closing Bailout Loopholes.” It appears that a cloture vote will now pass, and debate on the legislation — with its many economy-damaging provisions — moves forward.

(Hat tip: Daniel Foster, The Corner.)

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