Reid says GOP “making love” to Wall Street 

Senate Majority Leader Harry Reid today accused Republicans of “making love to Wall Street” because they initially would not go along with plans to proceed with amendments to a massive financial regulatory reform bill.
Republicans, “are having difficulty determining how they’re going to continue making love to Wall Street” Reid said, in explaining to reporters the delay on the Senate floor.
But the two sides have now resolved their differences. As I reported today, Sens. Christopher Dodd, D-Conn., and Richard Shelby, R-Ala., the top lawmakers on the Banking Committee, have struck a deal on one of the major sticking points in the bill that deals with the notion of banks being “too big to fail.”
The deal, according to Sen. Bob Corker, closes loopholes that might otherwise allow the federal government to bail out failed big banks using taxpayer dollars.
Instead of creating a $50 billion fund to liquidate firms that collapse, the cost of winding down a company would be covered by the government and refunded by creditors after assets are sold off.
Corker said it is unlikely the taxpayer will be left footing the bill, but he admitted he could not guarantee it.
“The Treasury will be first in line,” to recoup the money, Corker explained.
“Theoretically there would never be any shortfall,” he added. “You can’t say never, but based on what I know, I think beyond a reasonable doubt it protects taxpayers.”

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