Sean Bielat who is running for Congress against Barney Frank, issued the following statement today:
As a candidate for U.S. Congress opposing Barney Frank, and as a constituent, I am greatly disappointed in Senator Brownâ€™s expressed support of the Dodd-Frank Bill.
This bill has Barney Frank’s DNA — it sounds smart but doesn’t make much sense, it spends more than it saves, and it’s afraid to talk about Fannie and Freddie.
I believe the prerequisite for financial regulation legislation is discussion of Fannie and Freddie, otherwise we’re raising the dike without plugging the hole. This bill doesnâ€™t touch on those entities, which are the heart of our financial collapse and are expected to cost taxpayers upwards of $400 billion.
The bill remains full of excessive regulations that fatten government and donâ€™t protect consumers, including a provision to force race and gender quotas on financial firms that would create a new taxpayer-funded bureaucracy and introduce social legislation into a financial “reform” bill.
Our Senators and Representatives need to listen to their constituents and do the right thing, not just pass a bill laden with special interest provisions and new bureaucracies. We cannot afford the increased costs to borrowers and to consumers that this legislation will mandate.
Scott Brown’s Decision to Support the Bank Reform Bill
Brown said Monday that he has changed his mind about the bank reform bill and will now vote in favor:
I’ve spent the past week reviewing the Wall Street reform bill. I appreciate the efforts to improve the bill, especially the removal of the $19 billion bank tax. As a result, it is a better bill than it was when this whole process started. While it isn’t perfect, I expect to support the bill when it comes up for a vote. It includes safeguards to help prevent another financial meltdown, ensures that consumers are protected, and it is paid for without new taxes. That doesn’t mean our work is done. Further reforms are still needed to address the government’s role in the financial crisis, including significant changes to the way Fannie Mae and Freddie Mac operate.
Brown made a more detailed statement about it on RedMassGroup.
Salon has a nice article on why Brown’s support for Bank Reform is smart politics:
In the immediate aftermath of his stunning special election victory in January, there was uncertainty over what direction the Massachusetts Republican would take in the Senate. Would he play to the national Tea Party base, figuring that it would give him a future on the national stage even if he failed to win a full term in 2012? Or would he break with his party on high-profile issues to forge the kind of independent image that Republicans need to win in the Bay State?
But he answered the questions almost immediately, byÂ supporting Harry Reid’s jobs bill and incurring the wrath of national GOPÂ activists. With that, Brown’s seriousness about winning a full term became clear, and in that context, his financial reform maneuverings aren’t that surprising.
What is worth considering, though, is whether his political strategy is working. The short answer is: yes.
The Greater Boston Tea Party released a statement expressing their disappointment:
The leadership and members of the Greater Boston Tea Party, along with tea party and conservative activists across the Commonwealth are greatly disappointed in Senator Brown’s announcement that he will vote yes on the Financial Reform Bill. Â After weeks of debate and a thorough investigation of the bill and its possible effects on the economy, small businesses, community banks and consumers, we are at a loss as to what redeeming qualities Senator Brown found in the bill worthy of support.
Scott Brown promised in the fall of 2009 to stand up for free markets and constitutional principles. Â A yes vote on this bill Â – a bill that disregards Fannie Mae and Freddie Mac, greatly expands executive authority and reach, creates a perpetual and permanent bail-out system and fosters the creation of even more bureaucracy – defies the commitment he made to thousands of activists and donors across the nation who swept him in to office in January in one of the biggest political upsets of all time.
Tea party activists will continue to independently support candidates and current representatives that adhere to our constitutional principles of limited government, free markets and individual Liberty. Â If Senator Brown wants our continued support, he must consider how legislation he supports upholds these principles.
The bank reform bill is a wedge issue between Republicans and Democrats nationally.Â The argument against the bill is summarized in the National Review.Â Former Federal Reserve Chairman Paul Volcker thinks the bank reform bill is too little too late.