Financial Overhaul Goes Forward On Bipartisan Votes
RENEE MONTAGNE, Host:
NPR's Audie Cornish has this report.
AUDIE CORNISH: Negotiations over how the bill deals with financial companies considered too big to fail has held up the legislation for days. So, Senator Chris Dodd says Democrats are giving up the idea of taxing the banks for a $50 billion fund to shut down failed firms.
CHRIS DODD: So, because whether they pay in advance or after the fact, these costs will be paid by Wall Street and not taxpayers, I have no objections to dropping that provision.
CORNISH: Instead, the new provisions hatched by Dodd and Senator Richard Shelby, would pay for liquidations with loans from the Treasury. Those taxpayer dollars will be recouped by selling off the failed company's assets. Shelby says the new provisions would also make financial regulators more accountable for the way they handle emergency lending.
RICHARD SHELBY: I believe we must put an end to the ad hoc responses of the federal governments which only lead to fear and to panic. I believe these changes will help us do that.
CORNISH: Audie Cornish, NPR News, the Capitol.
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