Dino Rossi announced Wednesday his opposition to a massive overhaul of Wall Street rules awaiting Congress’ final approval, even as his opponent, Sen. Patty Murray, prepared to vote for the regulations.
Rossi joined his two most prominent Republican rivals in opposing the bill, which Senate Democrats appear to have the votes to send to President Barack Obama this week with help from at least three Republicans.
Murray’s and Rossi’s campaigns traded barbs over who’s taking Wall Street’s side. Their major point of contention: whether the bill will prevent the use of taxpayer money for future bailouts of banks.
Rossi said it avoids reform by leaving the door open for more bailouts.
“If you know you’ve got this safety net and know you’re going to get bailed out, why would you change your ways?” Rossi said in an interview.
The bill would set up a process for liquidating troubled banks, containing an amendment Murray supported that bars the use of taxpayer money.
“This bill contains explicit language guaranteeing that taxpayers will never again be responsible for bailing out Wall Street,” Murray told the Senate.
Rossi pointed to reports of loopholes in that procedure and in new regulations that would prohibit the Federal Reserve from lending to failing banks.
The overhaul puts new restrictions on bank borrowing, makes it harder for them to trade in exotic financial instruments, sets up new rules for agencies that rate investments and creates a consumer agency.
Jordan Schrader: 360-786-1826
jordan.schrader@thenewstribune.com
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