GOP May Threaten to Block Financial Regulations Overhaul to Stop More Bailouts

April 15, 2010 04:29


The White House and congressional Republicans sharply disagree on whether legislation backed by President Obama would leave the government on the hook for bailing out firms whose failure might threaten the economy

FoxNews.com reports:

WASHINGTON — Republican leaders, responding to growing resistance in their party to a financial regulations overhaul being pushed by President Obama, are considering ways to potentially block the legislation if it makes it to the Senate floor without more bipartisan input.

The options being discussed include sending a letter to the Democratic leadership signed by all 41 Republican senators threatening to unify against the legislation, Dow Jones reports. The GOP has enough votes to mount a filibuster.

The latest developments come on a day when the White House and congressional Republicans sparred over how to protect taxpayers against “too big to fail” financial institutions, sharply disagreeing on whether legislation backed by Obama would leave the government on the hook for bailing out firms whose failure might threaten the economy.

Obama, meeting with House and Senate leaders of both parties, insisted on a tough bill, specifically singling out oversight of previously unregulated financial instruments. How to regulate these products, known as derivatives, has become the latest point of friction between Democrats and Republicans.

Senate Republicans met later Wednesday night to discuss their “overwhelming opposition” to the Democrats’ handling of the bill, Sen. John Thune of South Dakota told Dow Jones. “What we would like to do is have a seat at the table.”

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