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. 

Wall Street needs to change its behavior and executives asking for government support should feel financial pain, billionaire Warren Buffett said today. 

Besides voicing support for financial reform, Buffet was upbeat on the economic recovery and the future of Goldman Sachs CEO Lloyd Blankfein, who he said should keep his job despite civil charges and an ongoing criminal case against the investment firm.

"I think you have to do something to change behavior of CEOs and directors," said Buffett, CEO of Berkshire Hathaway and Goldman's largest shareholder, Monday on ABC's "Good Morning America." 

"I think it's disgusting that you've got all of these failures of major institutions that the government has had to step in for society reasons to help and, basically, all the CEOs that caused all the trouble went away rich."

Buffett suggested new policies that would require "the CEO and his wife go broke" if a company needs help from the federal government. 

"That would change behavior." 

Cost, containment and economic damages to the Gulf coast will be paid for by British Petroleum, a White House spokesman said today. 

The tab for any economic damages incurred -- such as fisherman unable to use the Gulf waters -- will be picked up by BP, White House spokesman Robert Gibbs told reporters Monday. 

"BP is the responsible party," he said. "If local fishermen can't fish that's an economic loss that BP is gonna have to pay."

Under the law, BP is responsible for all damages not just cost and containment and they can be forced to pay economic damages, Gibbs said. 

"The economic damages that are incurred are part of the cost of this incident, absolutely," he said.

Democratic Sens. Bob Menendez (N.J.), Frank Lautenberg (N.J.) and Bill Nelson (Fla.) intend to introduce a bill Monday increasing the economic liability cap for offshore oil spills from $75 million to $10 billion in response the the Gulf of Mexico disaster, according to a release. 

Consumer spending outpaced income growth in March, pushing down the savings rates to 2.7 percent the lowest level since 2008. The savings rate sank to 1.7 percent in 2007 as Americans purchased homes in the booming market. 

Consumer spending rose 0.6 percent in March, meeting expectations while personal incomes rose 0.3 percent, the most in five months but not enough to allay concerns about the economy's need for more robust job growth, according to figures released Monday by the Commerce Department. 

Consumers relied more on their savings, spending more with smaller income growth, leading to the lowest savings level since September 2008. 

Job growth is the economy's looming issue with economists and Obama administration officials saying the unemployment rate will probably remain high for the foreseeable future. The next jobs report is due Friday and no change is expected to the 9.7 percent jobless rate. 

In another economic indicator, inflation tied to consumer spending was up 0.1 percent in March and the same 0.1 percent increase, excluding food and energy. Inflation is up only 1.3 percent, excluding food and energy, in the past 12 months. 

New York state lawmakers are telling Congress to oppose President Barack Obama's plan to tax banks for the financial bailout.

The lawmakers are telling Congress the president's plan, "would make New Yorkers pay for the sins of Detroit."

In a letter to Rep. Peter King (R-N.Y.), 10 members of the New York State Assembly are urging Congress against the proposal, saying the tax, "is loaded against New York because we are where the vast majority of affected financial institutions have their largest employment and profit centers."

The letter is signed by Darryl Towns, Jose Peralta, Michael Gianaris, Jonathan Bing, Vanessa Gibson, Adriano Espaillat, Adam Clayton Powell, Carl Heastie, Sam Hoyt and Marcos Crespo.

The tax is meant to recoup money from the $700 billion financial bailout package from 2008. When the White House originally proposed the tax in January, the administration said it would not apply to General Motors, Chrysler, Fannie Mae and Freddie Mac. The bailout is known officially as the Troubled Asset Relief Program (TARP).

"It is the car industry bailout where American taxpayers are likely to suffer the big losses from TARP, but the car companies are not among those being hit with the new tax," the lawmakers wrote.

Rep. Alan Grayson (D-Fla.) is calling on voters to tell the Senate to back new government audits of the Federal Reserve.

Grayson is an outspoken supporter of legislation, originally drafted by Rep. Ron Paul (R-Paul), that requires tougher audits of the central bank following the financial bailout of 2008.

Grayson sent an email to supporters on Monday, titled, "Who got our $1,000,000,000,000?"

"Regarding all those billions that the Fed hands out like party favors, we will find out who, what, when, where and how," Grayson said.

The amendment is now pending in the Senate, which is starting debate Tuesday on possibly hundreds of amendments to wideranging financial overhaul legislation. The amendment has bipartisan support.

"With such bipartisan support, you'd think that passing this legislation would be a slam dunk. Wrong. Wall Street bankers and their lobbyists are twisting arms and pouring millions into the campaign coffers of politicians on both sides of the political divide, to keep their sweetheart Fed loans under wraps. It's time to counter their influence-peddling by making the Senate listen to the united voice of the American People. (That would be you.)," Grayson said.

Manufacturing grew at the fastest clip in six years last month, providing an additional boost to the nation's economic recovery behind consumer spending and car sales.

The manufacturing sector grew for the ninth straight month as the Institute for Supply Management's factory index increased to 60.4 in April, the highest level since June 2004, according to a report released Monday. A level above 50 reflects expansion. 

The 12-month low was 43.2 in May 2009, with steady growth since then. The numbers topped 50 in August 2009 hitting 52.8 with gradual increases since then. The 12-month factory index average is 53.5, according to the repot. 

The sector showed solid gains in production, new orders and employment. The production index increased to 66.9, up 5.8 percentage points, for the 11th straight month. New orders hit 65.7, up 4.2 percentage points. reflecting a 10-month trend while employment was up to 58.5, an increase of 3.2 percentage points showing five straight months of growth. 

To read the report, click here. 

The National Center for Transgender Equality is calling on lawmakers to hire under- and unemployed transgender individuals.

"We've talked to people who have applied to, literally, hundreds and hundreds of jobs without getting work. Maybe members of Congress can address this issue by giving a job to a transgender person," said Mara Keisling, the group's executive director, in prepared remarks. 

Treasury Secretary Timothy Geithner is expected to be pressed on the issue Tuesday by the Senate Finance Committee.