G.O.P. Takes Aim at Plans to Curb Finance Industry

By DAVID M. HERSZENHORN and SEWELL CHAN
NYT

WASHINGTON — Drawing the lines for a fierce election-year battle over regulating the nation’s financial system, Senate Republicans on Tuesday insisted that legislation proposed by Democrats and the White House would only encourage future taxpayer bailouts of big banks.

The Senate Republican leader, Mitch McConnell of Kentucky, criticized the Democrats’ plans to regulate Wall Street as arrogant and partisan, echoing the recent health care fight in which he accused Democrats of carrying out a government takeover.

“We cannot allow endless taxpayer-funded bailouts,” Mr. McConnell said in a floor speech. “That’s why we must not pass the financial reform bill that’s about to hit the floor. The fact is this bill wouldn’t solve the problems that led to the financial crisis. It would make them worse.”

Both the White House and Congressional Democrats quickly fired back, accusing Republicans of trying to prevent tougher policing of Wall Street.

(More here.)

Here's the outcome of the meeting:

Obama Meets Resistance From G.O.P. on Finance Bill
By SHERYL GAY STOLBERG and DAVID M. HERSZENHORN

WASHINGTON — In the face of stiff opposition from Senate Republicans, President Obama urged leaders of both parties in Congress to spend the next few weeks coming to terms on a financial regulation bill that would head off the need for bailouts in the future and bring the trading of complex financial instruments out of the shadows.

During a meeting with leaders of Congress from both parties in the Cabinet Room Wednesday morning, the president rejected the contention of Republicans — and notably their leader in the Senate, Mitch McConnell of Kentucky — that the measure offered by Senate Democrats would only make bailouts of gigantic, risk-laden institutions more likely.

“I am absolutely confident that the bill that emerges is going to be a bill that prevent bailouts — that’s the goal,” Mr. Obama said, with Mr. McConnell sitting impassively nearby.

Mr. Obama is fresh off his big health-care victory, and the financial reform measure will be a test of how much clout he now has on Capitol Hill. But while the president expressed confidence at the outset of the session that the two parties could work together to produce “an effective bipartisan package that assures we never have too-big-to-fail again,” the leaders did not sound nearly as confident after the nearly hour-long session.

(Original here.)