Update: The GOP managed to stop the current bill by a vote of 57. Back to "negotiations" it goes. "Democratic" Ben Nelson voted with the GOP.
Did you know Warren Derivatives are Weapons of Mass Destruction Buffett was lobbying Congress to exempt existing derivatives contracts from collateral requirements? Did you know that Brookshire Hathaway, Buffett's company, has a $63 billion derivatives portfolio?
Well, this is a first. Warren Buffett's lobbyists were denied a derivatives provision in the Senate bill, according to The Wall Street Journal.
The Democrats just denied Brookshire Hathaway an exemption on capital requirements for existing derivatives contracts, so now Buffett's Hathaway will have to pony up collateral to back their existing derivatives portfolio.
Sen. Ben Nelson (D., Neb.) initially helped push the provision into a bill passed by the Senate Agriculture Committee last week. It would have prohibited the government from requiring companies to hold collateral against their existing derivatives trades.
Note how Senator Ben Nelson always seems to be around when it comes to adding provisions demanded by lobbyists?
Meanwhile Republicans are now in agreement to attempt to block the Senate Financial Reform bill. Senator Shelby:
Republicans will block Democrats’ efforts to begin debate on the measure in a test vote today, saying the move would give them more leverage.
“I believe that 41 Republicans are right now going to stand together,” Shelby, the top Republican on the Senate Banking Committee, said in a speech at an Independent Community Bankers of America conference in Washington.
If Democrats fail to get enough votes, Republicans plan to offer their own alternative financial regulation plan, a Shelby aide told reporters today.
Democrats, who control the Senate with a 59-41 majority, need 60 votes to open debate in the procedural ballot set for 5 p.m. in Washington.
I'll update this post for more Senate shenanigans. Gee wiz, we only had Financial Armageddon and the worst recession since the Great Depression because of all of this.