Possible talking point: the FinReg bill is many things. "Reform," it is not (link - subscription required).
As Banking Chairman, Mr. Dodd was declaiming on the Senate floor that the toxic twins absolutely, positively, no doubt about it, need to be reformed-just not yet. He thus opposed Arizona Senator John McCain's amendment to his financial regulatory-reform bill to shrink the mortgage giants, raise their underwriting and capital standards, cap the taxpayer losses (now $145 billion and counting) and eventually shut down the failed enterprises.
Mr. Dodd countered with a bold plan to authorize Treasury Secretary Timothy Geithner to . . . conduct a study. What has Treasury been doing for the last 17 months? Mr. Geithner is the fellow who lifted the $400 billion bailout limit on Fannie and Freddie last Christmas Eve. Now Mr. Dodd promises that Mr. Geithner will conduct "a tough study." Tough on taxpayers most of all, as Fan and Fred continue to bleed red ink by Treasury design so they can subsidize mortgage borrowers to avoid foreclosure...
Senators can call their pending bill many things, but as Mr. McCain said yesterday, they should not dare call it reform of the financial system.
They will continue to do so, no doubt.
