Republicans united in opposition to financial reform bill

Senate Minority Leader Mitch McConnell (R-Ky.) has all members of his conference united against the financial reform legislation.

McConnell had circulated a letter to Senate Republicans to marshal opposition to the bill proposed by Senate Banking Committee Chairman Chris Dodd (D-Conn.), but centrist Sen. Susan Collins (R-Maine) had withheld her signature.

On Friday, McConnell's office said that all GOP senators has signed a letter to Majority Leader Harry Reid (D-Nev.) that calls for a "bipartisan and inclusive approach" but says that "we are united in our opposition to the partisan legislation reported by the Senate Banking Committee."

The letter stops short of saying that Republicans will block the legislation.

The letter shows that Republicans have dug in their heels against the bill backed by the White House and a majority of Senate Democrats, but indicates they could be open to backing a revised package.

A senior Democratic aide has said that Reid expects to bring the bill to the floor next week and Democrats have said there will be time to debate and alter the bill before the full Senate.

Just Friday morning, Banking Committee member Sen. Jack Reed (D-R.I.) had identified three Republicans who could support the bill. 

Full letter after the jump

Dear Leader Reid:

We encourage you to take a bipartisan and inclusive approach, rather than the partisan path you chose on health care. 

A bipartisan bill should address the damaging financial practices of big Wall Street firms and government-sponsored entities that led to unprecedented taxpayer bailouts and caused our government to take on enormous amounts of debt.  We simply cannot ask the American taxpayer to continue to subsidize this “too big to fail” policy.  We must ensure that Wall Street no longer believes or relies on Main Street to bail them out.  Inaction is not an option.  However, it is imperative that what we do does not worsen the current economic climate or codify the circumstances that led to the last financial crisis.

We are united in our opposition to the partisan legislation reported by the Senate Banking Committee.  As currently constructed, this bill allows for endless taxpayer bailouts of Wall Street and establishes new and unlimited regulatory powers that will stifle small businesses and community banks. 

This is a complex issue that could have unintended consequences on job growth, the ability of Americans and business owners to access credit, and the United States’ role as a worldwide leader in innovation and capital formation.  The consequences of this bill will reverberate across our economy for years to come.

We urge you to support the bipartisan negotiations by the Banking and Agriculture Committees.  We are confident that the Senate can overcome political tensions and provide a bipartisan approach to financial reform this year.

---