Gillibrand: Reform Bill Keeps N.Y. Financial Center

Senator Kirsten Gillibrand is expressing her satisfaction with the financial reform bill that emerged from committee early this morning.

“The legislation creates transparency and establishes new, common sense rules of the road to protect taxpayers, ensure the stability of our economy, and prevent future catastrophes,” the Senator said in a statement. “It holds banks and lenders accountable, ends too-big-to-fail bailouts, reins in excessive risk, looks out for consumers, and keeps New York the center of the world’s financial markets.”

Earlier in the day, one of her Republican opponents, former Bear Stearns economist and deputy Treasury Secretary David Malpass, had criticized the Senator for not doing enough to protect the state’s Wall Street interests.

But the bill did eventually emerge with a slightly softer stance on derivatives than the one being pushed by Senator Gillibrand’s colleague on the Agriculture Committee, Senator Blanche Lincoln of Arkansas, who–after a stand-off with some New York House members–ultimately blinked on her outright ban on derivatives. (In April, Senator Gillibrand had offered a provision that would have delayed the implementation of the derivatives ban while its potential effects were studied, a parliamentary maneuver that preserved her option to introduce that amendment when the bill came to the floor–an option she did not ultimately exercise.)

Gillibrand’s approval would seem to give the bill home-state support–senior Senator Chuck Schumer was on the conference committee–as Democrats try to get the 60 votes needed for cloture next week.

The Senator’s statement, in full:

“After experiencing the worst financial crisis since the Great Depression, taxpayers and middle class families are finally getting the protections they deserve.

“The legislation creates transparency and establishes new, common sense rules of the road to protect taxpayers, ensure the stability of our economy, and prevent future catastrophes. It holds banks and lenders accountable, ends too-big-to-fail bailouts, reins in excessive risk, looks out for consumers, and keeps New York the center of the world’s financial markets.

“I want to thank Chairman Dodd, Chairman Frank and all the conferees for working together to ensure that our financial system is working to create jobs for all Americans ready and willing to get to work.”

Gillibrand: Reform Bill Keeps N.Y. Financial Center