WASHINGTON - Midlands senators split along party lines Wednesday on a key test vote for the financial regulatory bill.
Democrats failed to garner the required 60 votes to move the bill forward.
Although Sen. Ben Nelson, D-Neb., had initially expressed reservations about the bill, he voted Wednesday to move it forward.
"The Wall Street reform bill we’re working on is a major step forward in protecting Main Street and the Nebraska taxpayers from the abuses of Wall Street," Nelson said. "In my view, a vote against cloture is a vote for doing nothing. It protects the status quo and that is something I simply can’t do."
Nelson said that after weeks of fair debate and numerous amendments, the bill’s supporters now include grocers, retailers and others.
He also said that several concerns expressed by Nebraska’s community bankers have been addressed in the bill. He noted one amendment related to FDIC insurance premiums is expected to save community banks $4.5 billion over three years.
Sen. Mike Johanns, R-Neb., opposed moving the bill to its final stages. He said it had started out as a good piece of legislation but went downhill over the past couple of weeks.
"This bill just got worse and worse and worse," Johanns said.
Johanns objected to portions of the legislation that deal with the exotic financial deals known as derivatives.
He said that farmers, ranchers need the ability to use those derivatives to manage risks posed by severe weather, high fuel costs and low crop prices.
Johanns said the new regulations on derivatives, including collateral requirements, would "put our economy in a straightjacket."
Sen. Chuck Grassley, R-Iowa, joined Johanns in voting no, while Sen. Tom Harkin, D-Iowa, voted to move the bill forward.
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