McConnell Caves on Financial Reform

Senate Minority Leader Mitch McConnell's strategy to not allow financial reform to be debated on the floor has proven to be a disaster. McConnell has finally caved.

A press release from McConnell's office:

“I appreciate the efforts of Sen. Shelby to work toward a bipartisan solution on an issue that will have an impact on nearly every American. The time afforded by my Republican colleagues and Sen. Ben Nelson was instrumental in gaining assurances from the Chairman that changes will be made to end taxpayer bailouts and the dangerous notion that certain financial institutions are too big to fail.

“Unfortunately, Sen. Shelby believes that continued talks on a number of provisions affecting Main Street will not bring the negotiators any closer to an agreement. Now that those bipartisan negotiations have ended, it is my hope that the majority’s avowed interest in improving this legislation on the Senate floor is genuine and the partisan gamesmanship is over. I remain deeply troubled by a number of provisions in this bill and will work aggressively in the days ahead to ensure that the majority does not use our mutual interest in regulating Wall Street to extend the federal government’s unwanted hand into Main Street.”

Greg Sargent spoke with a Republican Senate aide. Sargent reports Sen. Richard Shelby's strategy was to stall and get more concessions from the Democrats. The Democrats wouldn't give more concessions. Senate Democrats have forced Republicans to repeatedly vote against allowing a debate on the floor. Some Senate Republicans did not want to back McConnell on the filibuster. The short answer is McConnell could not keep his caucus together.

The political calculus for blocking financial reform is asinine. However, seen through McConnell's eyes it makes perfect sense. McConnell's seat is in a strongly red state. (However, McConnell faired less well than presidential candidate John McCain.) McConnell and Sen. John Cornyn made a deal with Wall Street executives to block financial reform.

From Fox Business:

During the meetings, both predicted that the Republicans will likely add at least six senate seats to their current total of 41, meaning they would come up just shy of control of the Senate. They predicted victories in Nevada, unseating the unpopular Senator Majority Leader Harry Reid, and said Republican Pat Toomey has a great shot at unseating Republican-turned-Democrat Arlen Specter in Pennsylvania.

They also said that they have a shot at taking control of the House by adding 40 additional seats to their current total. In New York State alone, the senators predicted a six-seat pickup.

But in order to assure those gains, and add even more, McConnell and Cornyn made it clear they need Wall Street's help. “There was no arm twisting but they did say that we should feel uncomfortable living in any country where one party has unfettered ability to pass anything including health care and anything else President Obama dreams up,” said another executive who was present.

McConnell does not care about his constituents. McConnell wants lobbying money and to be Majority Leader. His misreading of the public's contempt of Wall Street is proof of that.