Chris Dodd’s decision to cut off negotiations with Republicans on a consumer finance protection agency has shocked Washington. Nasiripour suggests
that Dodd’s decision was likely influenced by the outcry from progressives and other pro-reform groups who argued that Dodd, a Connecticut Democrat not seeking reelection this year, was giving Republicans and Wall Street-friendly Democrats too much sway over the legislation. Dodd’s original reform proposal in November had called for a strong, independent consumer-focused agency to protect borrowers from predatory lenders.
“At the end of the day, though, there is only so much that reform advocates were willing to give on this,” the advocate said. “And because of the context — what the banks did to the economy and the bailouts — reformers have a lot of high ground right now. Democrats just don’t benefit from teaming up with the banks and losing the interest groups.”
IOW, it’s turning into a bad season to vote with banks. Not to mention that once a Senator announces his retirement, he can do what he damn well pleases. My money was on this move a month ago. Add on pressure from consumer advocates, and it seems…well…obvious to me. Maybe I should start playing on Intrade?
