Congressional Black Caucus balks at Obama financial overhaul

A House panel Wednesday approved major legislation aimed at overhauling the nation's financial regulatory system, but did it without the backing of members of the Congressional Back Caucus.

The House Financial Services Committee passed the Financial Stability Improvement Act by a vote of 31-27. Missing from the room were ten Democratic members of the CBC, who are angry with the administration for not doing enough to help reverse minority job loss.

“We cannot address system risk on a broad scale without taking steps to prevent the crumbling of our community's infrastructure,” Rep. Maxine Waters, D-Calif., said after the vote. “Since last September, we have continuously voted for bailouts and reform for the very institutions that created this devastation, without properly protecting the African American community, or small business.”

The bill is part of a legislative package addressing financial regulatory reform that is expected on the floor of the House as early as next week. Committee Chair Barney Frank, D-Mass., had already delayed the vote more than a week to try to get the CBC on board.

The bill that cleared Financial Services on Wednesday calls for the creation of an inter-agency oversight council that will monitor financial firms for actions that could put the nation's financial stability at risk and gives the government the power to shut down large failing financial institutions.

There are 41 House lawmakers in the CBC and they could block final passage of the bill if most Republicans vote against the measure.
Most likely, though, Democratic leaders and the White House will come up with some way to appease the CBC and win their support of financial regulatory overhaul, which is a top Obama priority.

Beltway ConfidentialUS

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

(Kevin N. Hume/S.F. Examiner)
City College union deal staves off layoffs, class cuts

One year agreement allows community college time to improve its finances

A Homeless Outreach Team member speaks with homeless people along Jones Street in the Tenderloin on Wednesday, May 6, 2020. (Kevin N. Hume/S.F. Examiner)
Breed proposes another street outreach team to divert calls away from police

San Francisco would launch a new street outreach team to respond to… Continue reading

Rendering of proposed ball park at Howard Terminal (Courtesy photo)
MLB instructs A’s to begin exploring other markets while still pursuing downtown ballpark

Major League Baseball announced Tuesday that it has instructed the Oakland Athletics… Continue reading

San Francisco Giants short stop Mauricio Dubon (1) breaks his bat on a ground out in the 4th inning against the Miami Marlins at Oracle Park on April 22, 2021 in San Francisco, California. (Photography by Chris Victorio | Special to the S.F. Examiner).
Wood, bench power Giants past Rangers

After a bullpen implosion cost Alex Wood a win in his prior… Continue reading

San Fernando, CA, Thursday, April 29, 2021 - California Governor Gavin Newsom waves goodbye to friends after attending a press conference where he signed legislation that will provide a $6.2 billion tax cut to the hardest hit small businesses in the state at Hanzo Sushi restaurant downtown. (Robert Gauthier/Los Angeles Times/TNS)

Most Read