Advancing a Free Society

Dodd bill too opaque

Monday, April 19, 2010

A major battle between two barons of the Senate pits Banking Committee chairman Christopher Dodd (D-Conn.) against minority leader Mitch McConnell (R-Kty.).

Their face off is over whether or not the proposed overhaul of the financial services industry — the Dodd bill — can put a stop to government bailouts of financial companies.

President Barack Obama entered the fray late last week, saying “I am absolutely confident that the bill that emerges is going to be a bill that prevents bailouts. That's the goal."

Stakes are high.

The apparently endless bailouts, and the crony-capitalism culture that seems to riddle Washington, are politically radioactive.

The Dodd bill is likely to pass if it is seen as an anti-bailout bill. It is likely to fail if it perceived as perpetuating the “heads Wall Street wins, tails Main Street loses" status quo.

Continue reading Jonathan Macey on POLITICO