Democrats threaten to oppose Sen. Shelby’s financial services bill

Democrats on the Senate Banking Committee are threatening to oppose a financial services overhaul from Chairman Richard Shelby (R-Ala.) that they say some members of the panel do not have access to.

Sen. Sherrod BrownSherrod Campbell BrownTrump puts hopes for Fed revolution on unconventional candidate Budowsky: Harris attacked Biden, helped Trump Speaker Pelosi, seize the moment to make history on drug pricing MORE (D-Ohio), the top Democrat on the panel, and the nine other Democrats on the panel signed a letter to Shelby expressing their "concern" and "great disappointment" with how he is handling the legislation.

ADVERTISEMENT

"We write to express our concern and great disappointment with your plan to consider broad legislation in the Senate Banking Committee without giving all committee Democrats time to analyze and review your proposal," the lawmakers wrote. "This does not speak well to the past history of bipartisanship on the Senate Banking Committee."

Shelby had been expected to hold a markup of the legislation next week, which Democrats objected to.

"A markup in one week on a broader proposal will not lead to a positive outcome," they wrote. "Given that you have not shared text of the legislation with all members of the Banking Committee, we are writing to inform you that we will be united in opposition if you go forward as planned."
After the letter was released, Shelby announced that the markup of the legislation would be held on May 21, one week later than initially planned.
 
A Banking Committee spokeswoman said that Shelby intends to distribute the bill's text on Monday.

The Committee spokesperson also said that Brown has had a copy of the bill's text for one week and that Republican members also have copies of it.
 
According to sources familiar with the draft proposal, Shelby's bill would create a congressional panel to look into reforming the Federal Reserve. It would also make the New York Fed president position a presidential appointee. Some of those Fed transparency provisions could see bipartisan support.

But liberals are likely to oppose other provisions that were included in the legislative outline of the bill, such as tying a mechanical rule to set monetary policy.

Other provisions that some Democrats would likely oppose include changing how regulators designate an institution as "systemically important financial institutions" (SIFI). The current draft proposal increases the threshold amount of consolidated assets from $50 billion to $500 billion. SIFI designation subjects financial institutions to more regulatory oversight.

Shelby will need to attract moderate Democratic support if he wants to clear the 60-vote procedural threshold to get his bill a vote in the upper chamber.

Democrats on the Banking Committee met on Thursday to discuss their frustrations with the process.

Aside from Brown, the Democrats who signed the letter to Shelby were Sens. Jack ReedJohn (Jack) Francis ReedOvernight Defense: House approves 3 billion defense bill | Liberal sweeteners draw progressive votes | Bill includes measure blocking Trump from military action on Iran Senators urge Trump to sanction Turkey for accepting Russian missile shipment Dem senators demand GOP judicial group discloses donors MORE (R.I.), Charles SchumerCharles (Chuck) Ellis SchumerNYT: Don't make Acosta a political martyr Charities say they never received donations touted by Jeffrey Epstein: report Schumer to donate Epstein campaign contributions to groups fighting sexual violence MORE (N.Y.), Robert MenendezRobert (Bob) MenendezDem senators demand GOP judicial group discloses donors Senate passes .5B border bill, setting up fight with House Senate to vote on blocking Trump's Saudi arms deal as soon as this week MORE (N.J.), Jon TesterJonathan (Jon) TesterTrump nominees meet fiercest opposition from Warren, Sanders, Gillibrand The Hill's 12:30 Report: Pelosi looks to squash fight with progressives Democratic senators want candidates to take Swalwell's hint and drop out MORE (Mont.), Mark WarnerMark Robert WarnerTrump nominees meet fiercest opposition from Warren, Sanders, Gillibrand On The Money: Fed chief warns of 'unthinkable' harm if debt ceiling breached | Powell basks in bipartisan praise amid Trump attacks | Federal deficit jumps to 7 billion Fed chief basks in bipartisan praise as lawmakers dismiss Trump attacks MORE (Va.), Jeff MerkleyJeffrey (Jeff) Alan MerkleySenate Democrat releasing book on Trump admin's treatment of migrants at border Sunday shows - Amash, immigration dominate Merkley on delaying endorsement: 'We have a different set of cards this time' MORE (Ore.), Elizabeth WarrenElizabeth Ann WarrenTrump complains of 'fake polls' after surveys show him trailing multiple Democratic candidates Amazon warehouse workers strike on Prime Day Elizabeth Warren backs Amazon workers striking on Prime Day MORE (Mass.), Heidi HeitkampMary (Heidi) Kathryn HeitkampTrump nominees meet fiercest opposition from Warren, Sanders, Gillibrand McConnell's Democratic challenger McGrath backtracks on Kavanaugh comments McConnell's Democratic challenger says she likely would have voted for Kavanaugh MORE (N.D.) and Joe DonnellyJoseph (Joe) Simon DonnellyTrump nominees meet fiercest opposition from Warren, Sanders, Gillibrand GOP frets over nightmare scenario for Senate primaries McConnell's Democratic challenger McGrath backtracks on Kavanaugh comments MORE (Ind.).

— This story was last updated at 5:28 p.m.