Durbin blasts GOP financial reform bill

Senate Democratic Whip Dick Durbin (D-Ill.) on Monday sharply criticized the Republican financial reform proposal that was billed as an alternative to the Democratic bill the Senate will begin to amend on Tuesday.

"We've been waiting to see if they would come forward with their own plan to determine whether or not it would be as tough on the banks on Wall Street as the bill that is on the floor," he said. "The verdict is in: it's not even close." 

Reviewing a summary of the Republican bill, Durbin said it lacks adequate capital requirements for banks and provides no oversight of "shadow" banks that operate outside the reach of regulators. 

"They actually weaken not only the requirements on banks, but certainly don't have a level of protection when it comes to shadow banks," he said. 

On consumer protections, Durbin claims the Republican alternative maintains the same "fractured" system that exists where oversight is split between a number of regulators.

The Republican proposal also gives regulators the power to veto new consumer protections and exempts institutions like used car dealers, payday lenders, check cashing outlets and debt collectors from following those protections. 

"This may be good news for these special interests, but it isn't to consumers across America," Durbin said. 

The senator claims Republicans watered down the "Volker" rule by only prohibiting depository institutions from making propriety trades. 

Credit rating agencies in the GOP bill do not fall under the SEC oversight, as they does in the Democratic proposal.

 The GOP bill also does not contain a "say on pay" provision allowing shareholders to have input on executive compensation. 

"That, to me, is a step in the wrong direction," Durbin said.