Obama vows to veto bill without controls on derivatives
Associated Press Writers
Vail, CO Colorado
WASHINGTON – President Barack Obama vowed Friday to veto a financial overhaul bill that doesn’t regulate the eclectic derivatives market, even as Senate Republicans lined up en masse against it.
Legislation pending in Congress would for the first time regulate derivatives, complex financial instruments like the mortgage-backed securities that contributed to a near economic meltdown in 2008 when their value plummeted during the housing crisis.
Obama said he wants derivatives to be strongly regulated, and he added that he’s ready to veto any financial reform bill that comes to his desk without it.
But there’s some dispute among Democrats about how far such regulation should go.
Further complicating matters Friday, Senate Minority Leader Mitch McConnell obtained signatures from 40 fellow GOP senators voicing opposition to the Senate bill and demanding further negotiations.
McConnell, R-Ky., won the support of one last holdout -Sen. Susan Collins of Maine – increasing his leverage as Democrats prepare to bring the legislation to the floor for debate.
The unified GOP stance came as a setback for majority Democrats who were hunting for individual Republicans to peel away from their party caucus to help the Democrats get the necessary 60 votes to overcome a likely procedural roadblock.
“We are united in our opposition to the partisan legislation reported by the Senate Banking Committee,” the Republicans said in a letter to Senate Majority Leader Harry Reid, D-Nev.