Editore"s Note
Tilting at Windmills

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December 8, 2009

THEY STILL 'OWN THE PLACE'.... In April, during the unsuccessful drive to pass bankruptcy reforms provisions such as "cramdown," Senate Majority Whip Dick Durbin (D-Ill.) was incredibly frustrated. At one point, Durbin conceded on a radio show, "[T]he banks -- hard to believe in a time when we're facing a banking crisis that many of the banks created -- are still the most powerful lobby on Capitol Hill. And they frankly own the place."

Nearly eight months later, Durbin continues to find evidence to bolster the argument.

In a little-noticed but potentially explosive remark last Friday, Senator Dick Durbin (D-Ill.) accused Republican leadership of signing a political pact with the banking industry: in exchange for help defeating a measure that would make it easier for homeowners to restructure failing mortgages, GOP leadership in the Senate would help banks defeat any additional efforts at regulatory reform.

The allegation of a quid pro quo was based on an email that Durbin received last spring after his amendment to allow judges to modify mortgages for homeowners who enter bankruptcy was defeated on the Senate floor. During a discussion to promote publicly-financed elections on Friday, the Illinois Democrat relayed that, shortly after the defeat of his "cram-down" amendment, a "banker friend" forwarded him the note from Tanya Wheeless, president & CEO of Arizona Bankers Association.

"I have contacted the market presidents for each of the three banks (Chase, Wells and Bank of America) and explained that in my humble opinion it's a big mistake to cut a deal with Durbin and alienate our (in Arizona) Senator," Wheeless's email reads. "I also told them that I thought this would drive a wedge in our industry. [Senator Jon] Kyl has pointedly told them not to make a deal with Durbin and then come looking to Republicans when they need help on something like regulatory restructuring or systemic risk regulation."

"I know the (sic) every state association will have to do what's best for its members, but I have told my largest three members that if they cut this deal, AzBA will fight them on it. They may be willing to alienate Republican leadership, but I'm not quite there yet."

Sam Stein summarized the problem: "The implication seems fairly clear: banks were being warned that if they negotiated with Durbin on cram-down, they were risking GOP support on regulatory reform."

Steve Benen 11:30 AM Permalink | Trackbacks | Comments (13)
 
Comments

Once again, I must recommend this video/story:

http://www.huffingtonpost.com/2009/12/07/jackie-ramos-bank-of-amer_n_381940.html

Jackie Ramoz was fired from Bank of America for helping people by breaking bank rules. Jackie rocks - please watch her video.

Posted by: Hannah on December 8, 2009 at 11:38 AM | PERMALINK

"in exchange for help defeating a measure that would make it easier for homeowners to restructure failing mortgages, GOP leadership in the Senate would help banks defeat any additional efforts at regulatory reform. "

Um... that's not, really, an exchange. "In exchange for doing something I want... you will do something else I want"?

Posted by: weboy on December 8, 2009 at 11:47 AM | PERMALINK

This question may seem naive, but let me ask it anyway: What would motivate the Senate Republicans to actively interfere with the banks' negotiations with the Democrats on the cram-down legislation, other than the mere desire to prevent the Democrats from having a success?

I don't see a policy or ideological motivation here. If the banking industry were to work out a compromise with the Democrats on this legislation, why would the Republicans have a problem with it?

Unless I'm missing something here, this just strikes me as pure, unadulterated obstructionism for political, rather than ideological ends.

Posted by: DRF on December 8, 2009 at 11:49 AM | PERMALINK

The Tanya Wheeless quote smells of smoke screen and cya-osity... but that doesnt mean she and all the other banksters, and a goodly portion of the congresscritters in washington all shouldnt be in prison right now...

what a bunch of greedy rotten criminal sociopaths.

Posted by: neill on December 8, 2009 at 11:50 AM | PERMALINK

Can you picture a Senator saying the Israel lobby is the most powerful in Washington and surviving the next election?

The banking industry is powerful, but Durbin can survive criticizing them. Who can survive criticizing the Israel lobby?

Posted by: Skeptical of Zionism on December 8, 2009 at 11:54 AM | PERMALINK

this is simple. Kyl was saying to the banksters, in effect "you help the Democrats look good on cram-down, and we'll be less likely to help you when it comes to defeating additional regulation."

Simple quid-quo-pro. Don't help the dems look good, and we'll help you when you want to remain free to rob the country going forward.

Seems pretty straightforward to me. The fact that Kyl and all his colleagues should fucking be in jail for treason to the country is another discussion.

Posted by: LL on December 8, 2009 at 11:56 AM | PERMALINK

I feel compelled to again point out to you liberals that, as republicans and dedicated Americans:

- we are at war
- we are at war with the greatest enemy that OUR country has ever faced
- we must win this war
- we will do anything to win this war
- we will do everything to win this war
- allowing any victory to our enemy is unacceptable
- any means to defeat this enemy are within bounds
- any tactics to defeat this enemy are morally permissible, as Jesus and Pat Robertson are on our side

After we defeat The Chosen One, the democrat party, and the working class of this country, we shall be returned to even greater power and control of this country. We will then amply reward our corporate and wealthy backers for their support during this time of war.

It is our republican destiny to rule this country in the name of power and wealth.

Remember our mantras:
- More is never enough!
- I've got mine, f*ck you!

Posted by: RepublicanPointOfView on December 8, 2009 at 12:00 PM | PERMALINK

If he had this e-mail last spring why did he wait til now to tell anyone about it, instead of releasing it back when a bunch of Dem Senators stopped cram down?
I find it totally laughable that Kyl wouldn't help banks anymore if they backed Durbin's deal. Could you imagine Kyl suddenly announcing Republicans would no longer stand in the way of new bank regulation? Me neither.
The reason cram down didn't pass was largely Democrats, Durbin is trying to change the subject from that uncomfortable fact.

Posted by: flounder on December 8, 2009 at 12:28 PM | PERMALINK

Um... that's not, really, an exchange. "In exchange for doing something I want... you will do something else I want"?

It's not an exchange -- it's a threat. "Do what we want or we won't protect you when it comes to regulatory reforms."

Posted by: Mnemosyne on December 8, 2009 at 1:25 PM | PERMALINK

After one of my senators voted against mortgage cramdown legislation, some people in my state began appealing to him to help them stay in their homes, and he said he'd help them. Empty words. Many of those who keep voting him into office are still losing their homes. They would have gotten the help many of them needed if he had just voted for the bill. The most shameful thing is that some of the people losing their homes will be living in homeless shelters, but they'll vote for him again. All he has to say is that he's a member of the NRA, a "christian," has "Family Values," believes in fiscal responsibility, and hates abortion and teh gays.

Posted by: majii on December 8, 2009 at 2:24 PM | PERMALINK

According to RealtyTrac, Arizona ranked 2nd in the nation in foreclosures in 3Q 2009 with a total of 50,342 - or 1 for every 53 households. I sure hope someone in the media and/or Arizona Democratic Party (is there such a thing?) is keeping track.

Interestingly, but not surprisingly, Open Secrets lists Finance, insurance and Real Estate as Mr. Kly's top sector in terms of campaign contributions at $3 million (Campaign Cmte & Leadership PAC Combined).

Posted by: Bob on December 8, 2009 at 5:02 PM | PERMALINK

So basically, DeLay's K Street Project continues even when the Republicans are in the minority. A political party that's in a minority, suffered the worst political curb-stomping since 1964, and has record low approval ratings, is still threatening people like it's a big dog.

Posted by: Kevin Carson on December 9, 2009 at 12:33 AM | PERMALINK

I don�t think the banksters who if they don�t own at least lease, the federal government, who gave them the money, to explain how they were able to stay afloat after the economic emergency, that I heard the start signal for.
The banksters, who control the legislative and as far as I can see the executive branchs of our federal government are hell bent to bust this country.Ether through cap and trade, global warming hogwash, Government health care or some other black flag terrorist event.
Now, they have come up with enough to pay it all back. From Where? What happened to make them solvent again, did the recent gains off the lows of the stock market profit them, who a year ago sounded the economic emergency siren? Have you heard the all clear signal? Someone should make them explain!.

The GOOD NEWS is even though they have many politico�s in there pocket, not as many judges.

The courts may be the only thing that can save our homes and our country.

Posted by: CaptBuckSnort on December 16, 2009 at 11:42 PM | PERMALINK
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