The White House said "yes we can" on financial regulatory reform on Tuesday, while the top Republican in the U.S. Senate said "no we won't."
A bare-knuckles fight is coming in days ahead as the Obama administration and congressional Democrats push for a crackdown on banks and capital markets against Republican opposition. With lawmakers recently returned from a two-week recess, a final vote on Senate legislation is near.
The shape and profitability of the financial services industry for years to come hangs in the balance, as well as the U.S. economy's ability to withstand future financial crises.
A White House official said momentum for regulatory reform seemed to be building. "We hope Republicans in Congress will join us in a constructive conversation about how to move a strong bill forward," White House spokeswoman Amy Brundage said in a statement.
But that upbeat assessment clashed with a defiant message delivered by Senator Mitch McConnell, the chamber's top Republican.
"We must not pass the financial reform bill that's about to hit the floor. The fact is, this bill wouldn't solve the problems that led to the financial crisis. It would make them worse," said McConnell on the Senate floor. ...
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Comment: I've wonder why we haven't had at least one public hearing in Congress that examined the real roots of the financial crisis that occurred in 2008. Why are we rushing to create new laws when Congress hasn't acknowledged the causes.
One thing we can all be assured of is the single party in Washington DC called Democrat/Republican Party aided the financial sector and allowed for bankers like Goldman Sachs to get away with highway robbery.
The only way we'll really know what happened is when a gutsy state attorney general steps up to the plate and takes on the feds and banks.