Financial Reform

Senators Near Deal on Failing Firms

Dodd will drop $50 billion bank fee.

This ought to make Wall Street happy: Democratic Senator Chris Dodd and Republican Senator Richard Shelby are near a deal to drop a $50 billion fee on banks from the financial-reform bill. That fee would have been used to pay for winding down banks in future financial crises, but Republicans charged that it would amount to unlimited taxpayer bailouts. Their agreement also includes new powers for the government to break apart failing firms, but they still have not agreed on other key provisions. Still, The Hill writes that “Republican senators sent signals Wednesday that they may relent in blocking a Wall Street reform bill from moving to the floor.” Senator Bob Corker openly questioned the Republicans’ decision to put forward their own legislation, while Ohio Senator George Voinovich has indicated that he will vote to allow debate on the bill.