lunes, 15 de diciembre de 2014

lunes, diciembre 15, 2014
December 12, 2014 6:15 pm

US budget battle shows Wall St still toxic

Megan Murphy in Washington
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An American flag waves outside the United States Capitol building

©Getty Images
 

Wall Street’s still-toxic political reputation nearly derailed a $1tn spending bill that both the Democratic and Republican parties had worked on for months.
 
As lawmakers sifted through the rubble from Thursday’s chaotic scenes on Capitol Hill, with revolts on both sides of the aisle threatening to scuttle a bill that had to be passed to keep the government’s lights on, two things were clear: Washington remains as dysfunctional as ever, and big banks need to buckle up for another bumpy ride.

The so-called “cromnibus” spending package was initially pitched as a sign of progress — a bipartisan, comprehensive piece of legislation that would fund nearly all of the government through September, instead of the short-term budgets Congress has become accustomed to in recent years.
 
Only the Department for Homeland Security, which is responsible for immigration, will face a renewed battle for funding early next year, as Republicans look to force changes to President Barack Obama’s plan to shield millions of unauthorised immigrants from deportation.
 
But a provision that would ease restrictions on some kinds of derivatives trading triggered a revolt on the left, led by a growing faction of populist Democrats who believe that what is good for Wall Street has been shown to be bad for the American people.

With the party still licking its wounds after November’s disastrous midterm elections, Democrats believe they can claw back ground with voters by painting Republicans as the party of corporate and financial industry excess.
 
As Republicans gear up to try and roll back a wide range of business regulations when they take control of both chambers of Congress next year, the battle over one corner of the Dodd-Frank financial reforms is a preview of much bigger skirmishes to come, both on the Hill and on the 2016 campaign trail for president.

“Keep in mind, this was a provision that was written by Citigroup lobbyists. I mean, they literally wrote it,” said Elizabeth Warren, the first-term senator from Massachusetts who led the revolt. “The biggest financial institutions in this country can make more money if this little provision gets stripped out of Dodd/Frank, and that`s why we`re here to fight.”

Much of what happens in Washington during budget battles can be dismissed as political grandstanding in a town that appears to have become inured to the theatrics of brinkmanship.

But even long-time Capitol Hill watchers appeared surprised by the twists and turns of the cromnibus.

What began as a bipartisan bill backed by the White House and which included compromises on both sides was soon being characterised as Republican “blackmail” by House minority leader Nancy Pelosi, in a rare public split with the president.

As Thursday’s midnight deadline to avert a shutdown approached, Mr Obama and Joe Biden, the vice-president, were forced into a round of frenzied calls to rally support for the legislation over the objections of their own party’s ranking House member.

“Congress has turned into crazy town right now,” Dana Bash, CNN’s respected political anchor, said late on Thursday.

The prospect that things will be different when the GOP controls both the House and the Senate appears increasingly remote. Senior members of the party insist they intend to govern constructively, pursuing bipartisan support for overhauling the corporate tax system, revamping energy regulation and boosting international trade.

But with the bitter fight over the president’s sweeping changes to the immigration system as one of the first items on their agenda, any hopes that Congress will be more productive next term were severely tempered by the sheer mayhem of this week.

While a majority of Republicans voted in favour of the bill, 67 members rebelled, mostly out of outrage that it did not go further to stop Mr Obama’s immigration plans.

Republicans have long made Mr Obama the focus of their ire, swaying voters by linking Democrats with his unpopular policies. Democrats are hoping that Wall Street can prove an equally appealing target, again, in the run-up to 2016.

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