Now, as the Senate works through a massive regulatory overhaul bill, some lawmakers are using the legislation as an opportunity to redeem themselves in the eyes of an angry electorate — a second chance to get on the right side of the Wall Street vs. Main Street argument.
The legislation aims to prevent another Wall Street meltdown by imposing tough new regulations on banks and financial firms. It’s also an opportunity for nervous incumbents to assail the $700 billion Troubled Assets Relief Program, which has turned into a touchstone of the anti-Washington sentiment threatening lawmakers in both parties…
Lincoln’s proposal included a provision that could require banks to spin off their lucrative derivatives trading units. Former Federal Reserve chairman Paul A. Volcker and current FDIC Chairman Sheila C. Bair are among the advocates of the broader overhaul efforts who have criticized Lincoln’s push as too restrictive and are advocating changes to the final bill.
