The Senate will vote on the motion to invoke cloture to proceed to consider Senator's Dodd's S. 3217, the Restoring American Financial Stability Act of 2010. Unless a compromise between Sen. Dodd and Ranking Republican Sen. Shelby are reached today, all 41 Republicans will oppose this measure.
The compromise will center around removing a $50 billion Orderly Liquidation Fund which the FDIC will have authority to tap, and the Fund will have privilege to borrow unlimitedly from the Treasury. This fund is nothing more than a permanent, unlimited TARP program that will be used to bailout politically important financial institutions. The cost of this Liquidation Fund will be paid for by financial firms with assets over $50 billion. However, the real cost of this will be passed on to American consumers.
However, even if this Fund is removed, there is no guarantee that one of the nine new agencies this bill creates will not use the regulatory framework to try and seek these funds. Further, in current form, this bill does nothing to address the route of the financial collapse – the faulty government backed lending agencies.
It is vitally important that all Alabama residents contact Sen. Shelby and remind him that any deal cut behind closed doors is still unacceptable. If you live in Alabama, please call Sen. Shelby and thank him for standing strong and remind him that a vote supporting cloture today is a vote for this bill. His number is 202-224-5744. It is important that you only call the Senator from the state you live. Other members can be reached by calling the Senate switchboard at 202-224-3121.
ATR WILL RATE against a vote supporting cloture later today.